TLT trade Closed at Stop Loss

Hello

The TLT spread trade was closed as it hit the stop loss price. On to the next trade! The post for the beginning of the trade is here.

** 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 Spread Trade in TLT (Bond ETF)

This morning, KDK Options entered into a spread trade for the Bond ETF TLT. A Dec 1, 2017 $120.50 put and a $129.00 call option were purchased. The cost of the trade before commissions and fees was $0.67. The expectation of the trade is to end at $1.50. Some reasons for the trade are below.

- Budget/Tax Reform news affecting the deficit will be consistent.
- US Dollar moving
- Chart at an inflection point
     - Likelihood of $130+ or sub $120 is higher given news and currency movements around the world


** 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 **

Bank of America Trade Closed for a Profit

The Bank of America Nov 3rd spread trade was closed out for a profit (original post here). The trade ended at a price of $0.79 before commissions and fees. Some of the proceeds will go to charity. Some of the proceeds will also go back to investors. Reasons for the closure of the trade are below. We will be looking at set ups for our next trade.

- Expiration was 2 weeks away
- Time value will decrease quickly from here on out
- Trade caplitalized on earnings

** 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 Spread Trade in Bank of America

Hello

Earlier today, KDK Options executed a spread trade in Bank of America. A straddle ( 1 put and 1 call) were purchased for the Nov 3rd $24.50 put and $26.50 call. The cost of the trade was $0.56 before fees and commissions. The expectation is for the trade to reach $1.50. A stop loss has been set. Some reasons for the trade are below:

- Broke out of range to the upside

- Support is at $23.00

- Earnings are later this month

- Rate increase discussion continues

** 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 **