New Spread Trade in Japanese Yen ETF FXY

There has been a new spread trade in the Japanese Yen ETF FXY. KDK Options has purchased a July 6th $87.00 call option and a $86.50 put option for a price of $0.97 before commissions and fees. The expectation is that the trade will end at $2.00. Some reasons for the trade are below.

- price has been calm, forming a triangle on a support level
- trade issues starting to heat up
- US dollar volatility starting to pick up



 ** 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 **

June 10 Update on XLF Spread Trade

The current spread trade on financial ETF XLF is still open. There are both fundamental and technical reasons to keep this trade open.

Fundamentally, there is both news geopolitically and financial that could affect XLF in a big way. The geopolitical news cycle is at a high this week due to the Singapore Summit. The fallout from the G-7 meeting will also be in the news this  weekend and into next week. Financially, the FOMC meets this week.

Technically, the weekly is banging up against the 50 day average as last week it bounced off of the 20 day moving average. A chart from Etrade is below.

 




 ** 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 **