New Spread Trade with Microsoft

KDK Options has made a new straddle spread trade with Microsoft. The April $66.50 call and April $64.00 put were purchased for $0.90 before commissions and fees. The goal is to reach $2.00. A stop loss price has been set. Reasons for the trade are below:

- Microsoft on an upward trend with resistance at $66.00. It has hit $66.00 a few times and been knocked down with higher lows each time

- Healthcare bill vote is today which will have implications going forward for the market in terms of the ability to get legislation done

- Earnings are April 20th with other tech company earnings before hand expected to set the tone and move the industry

FXY Spread Trade Ends in Profit

The recent FXY April spread trade ended in a profit today. The trade ended, hitting the stop price at $1.26. The trade started at $0.75 (link here).

Profits will be distributed to charity, tax account, and investors.

** This blog is used for informational purposes only. It should not be used as a recommendation to buy or sell any security. Do your own due diligence before trading or investing. If you would like up to the moment communication on KDK Options trades, email at kdkoptions@gmail.com **

FXY spread purchased 3/14

On March 14th, KDK Options purchased an FXY (Japanese Yen) April $86 call/$82 put spread. The cost of the trade before commissions and fees was $0.75.

The goal of the trade is $2.00 and reasons for the trade are below:

- Fed meeting

- Triple bottom or rollover looking likely

- G-20 meeting

- Stuck in $2.00 range

** This blog is used for informational purposes only. It should not be used as a recommendation to buy or sell any security. Do your own due diligence before trading or investing. If you would like up to the moment communication on KDK Options trades, email at kdkoptions@gmail.com **

Stop Losses Can Hurt, but....

by Michael Keane

Well, that sucks!

On a recent trade, the price of the option came down to the stop loss point and the sale was made. The next day, the stock and option price literally zoomed the way we wanted the trade to go. Feeling sick is an understatement. The struggle with finding the correct stop loss point continues! It feels more like art than science. We will have to look at our stop loss policies and see if there can be some adjustments made.

With that said,this post is mainly just an avenue to vent. Having a stop loss is absolutely paramount. Getting caught on the downside of your trade without a stop, you are out of the game and that is a place no trader wants to be.

Time to move on to the next trade….

 ** This blog is used for informational purposes only. It should not be used as a recommendation to buy or sell any security. Do your own due diligence before trading or investing. If you would like up to date trade information **

USO Spread Trade Profit

by Michael Keane

The USO spread trade ($12.00 April call and $11.00 April put) has ended with a profit. The trade was closed at $0.86 before commissions and fees. That is a profit of $0.46 or 115% before commissions and fees. KDK Options entered the trade (link here) at $0.39. 

Portions of the profits will be going to charity, investors, taxes, and back into the account.

On to the next trade....

** This blog is used for informational purposes only. It should not be used as a recommendation to buy or sell any security. Do your own due diligence before trading or investing. If you would like up to the moment communication on KDK Options trades, email at kdkoptions@gmail.com **

New USO Spread Trade Made

A spread trade in USO has been made. An April $12.00 call has been purchased as well as an April $11.00 put. The cost of the trade was $0.39 before commissions and fees. The goal of the trade is $1.00. Reasons for the trade are below:

- A tightening range in the chart

- Active marketplace with production amounts within OPEC and non-OPEC countries

- Possible devaluation of dollar with inflation and rising rates

- Mini triple bottom possibly formed or rollover (main reason for spread)

** This blog is used for informational purposes only. It should not be used as a recommendation to buy or sell any security. Do your own due diligence before trading or investing. If you would like up to the moment communication on KDK Options trades, email at kdkoptions@gmail.com **

XHB trade Stopped out

KDK Options XHB spread trade was stopped out yesterday.

We will now look to our next trade.

** This blog is used for informational purposes only. It should not be used as a recommendation to buy or sell any security. Do your own due diligence before trading or investing. If you would like up to the moment news for KDK Options, email kdkoptions@gmail.com**