New Spread Trade in Japanese Yen ETF FXY

A March 8 $87 call and $86 put spread trade has been started. A stop loss price has been implemented. The cost of the trade was $0.63 before fees and commissions. The goal of the trade is $1.50. FXY will have to likely move 1.5% in either direction to make this happen. Reasons for the trade are below:

- Bumping down on near support of $86.00
- General resistance at $88.00
- R1 is $89.06 on a 3 M chart, S1 is $83.72



** 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 **

XLF Closed at Stop Loss

The XLF trade was closed at a stop loss price. The put was sold at $0.24 before fees and commissions. The link to the original post is here.

The trade showed that one glaring mistake was made. KDK Options should not have sold the call side of the trade early. Greed and anxiety about "knowing the pattern" were the culprits behind the move. KDK Options was lucky for the move down on Wednesday to save some of the trade. We hope the lesson will be worth the loss taken this week. Ultimately, capital has still been preserved to still be active.

Now, as always, 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 **

Call Side of XLF Trade Sold

The call side of the XLF spread trade has been sold. With the trade clearly being pushed to the put side, the call side still had some value to salvage. The call was sold for $.07 before fees and commissions. A chart shows the move downward. There is a likelihood that the 50 day at $25.00 is higher now.

The trade has one more week before expiration. It is in the money with a decent opportunity to head down further. A stop loss price has been adjusted.




** 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 **

XLF Coiling

With 2 weeks left on the current XLF spread trade, the simple take away is this: XLF has not moved in 3 weeks since the trade started. That said, we still feel it will move and move hard when traders finally pick a direction. The original post for the trade can be found here.

We will continue to monitor our stop loss pricing to protect capital. The hope for a move cannot eclipse the importance of managing your capital when trading. There will always be another trade to make unless this rule is not followed.

Part of the reason this blog exists is to be an experiential resource. With the way this trade is playing out, the blog's notes provide a point of reference needed.





** 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 **