New Spread Trade in Bond ETF TLT

A new trade in bond ETF TLT has been started. An Aug 9th $133.50 call and $131.50 put were puchased for a price of $1.05 before fees. The goal of the trade is $2.50. Stop pricing has been started. Some reason(s) for the trade are below.

- Federal Reserve announcement happened after the spread trade was executed.
- Chart wise, TLT was sitting in between $130 and $135. A move to either given the fed announcement is likely


** 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 W Formation on Daily, Weekly, and Monthly

When looking at the different charts for Bank of America, there is a growing likelihood that a W formation is being created. If you look at the daily, weekly, and monthly charts (below), you can start to see the rise from the second bottom on each chart.

The daily is actually in its extension phase of its W formation. So there likely will be some resistance at the $14.00 level. With earnings coming next week, there is a chance it could reach beyond $14.00. The 1.68 Fibonacci extension from the middle of the W to the second bottom of the W would put the W finishing at $14.01.

If the weekly is to follow, the likely 1.68 Fibonacci price extension for it would be $17.04 and the 2.00 Fibonacci extension would be $18.00, which is where a massive resistance is located. The monthly chart says the same in regards to price points.
 
As always, this is just one opinion. Please do your own due diligence before trading or investing. Thanks to Optionsxpress for the charts.

Daily




Weekly



Monthly










** 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. **