Weekly (June 15-19) Metrics and Notes (XLF, Dow Jones)

Here are some metrics and notes from activity during June 15-19.

Metrics

Date Entry	Security	Option	Cost	Date Sold	Amount Received	Per Contract Result
6/15/20	XLF	June 19 $22.50 Put	$0.36	6/15	$0.14	-$0.22
6/16/20	DIA	June 19 $280 Call	$0.26	6/17	$0.07	-$0.19
6/18	XLF	June 16 $22.50 Put	$0.31	6/19	$0.16	-$0.15

Notes

- The first XLF trade was a trend trade where the stock shoots up a bit and then fades. It didn't fade.
- The DIA trade was a momentum trade on a previous up day followed by a strong opening. We may have bought at the top!
- The second XLF trade was again expecting a fade. The trade hit the stop loss (we sold) and then started fading! That is the way it goes sometimes. The money management did allow for another 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 research done on a stock you own or are thinking about buying, email at kdkoptions@gmail.com **

Busiest Day So Far Trading SQQQ and SPY Trades

Our call trade with Nasdaq ETF SQQQ has ended hitting the stop loss. The call was sold for $0.89.

On the flip side, we day traded an Oct 9 SPY $289 put for over a 60% return. We purchased the put for $0.66 and sold it for $1.14.

Reasons for both trades are below


- (SQQQ) With expiration next week, a tight stop loss was used.
- (SPY) There were clear technical and news level pressures on the ETF. We always intended to sell before the end of the day. 

** 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 In $SQQQ Bought and Sold For Profit

Yesterday, an October 18th $38.00 call option was purchased for a cost of $0.67 before fees. The reason for the trade was an increase in volatility for the security.

Today, the call was sold at the stop price of $1.05 before fees. That created a profit of $0.38 or 57%. Reasons for the trade are below. Previous trades on $SQQQ have been made in the past. On to the next trade!

- Stop loss was fairly tight due to the volatility
- A profit that big that quick needs to be protected
- Provide more capital for earnings season


 ** 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 Loss Out Of Jet Blue

The spread trade with Jet Blue was sold at the stop loss price. Stop loss pricing keeps the trader trading and conditioned to accept losses when they come.

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 **

Crispr trade ends in Stop loss

The trade in the Crispr has ended at the stop loss. Some reasons for the trade is below. It is important to have your stop prices. On to the next trade!

- Price hit stop loss price



** 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 **

Spread Trade in TLT Closed at Stop Loss

The spread trade in TLT was closed at the stop loss price. The trade closed at $0.45 before fees and commissions. The original post for the trade is here. Reason(s) for the trade are below. On to the next trade!

- Expiration was yesterday
- Trade was mostly range bound between the price points


** 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 Spread Trade Closed at Stop Loss

The ETF XLF spread trade was closed at the stop loss price. Reasons for the trade are below. The original post on the trade can be found here. On to the next trade!

- Price took a sharp turn lower on geopolitical news.
- Only 1 week left before expiration



** 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 Spread Trade Stopped Out

The recent spread trade in Financial ETF XLF has been stopped out. KDK Options will review the trade for any lessons and prepare for the next trade. A spread trade in Japanese Yen FXY is currently on. A link to that trade can be found here. Some reasons for the trade close are below.

- Price reached stop loss level
- Time on trade was shrinking

 ** 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 **

BAC Spread Trade Stopped Out

The BAC 32 call/27 put spread trade was stopped out on Thursday. The post for the original post is here. Some reasons for the trade ending are below. We are thankful that stop losses are put in each trade as they protect the opportunity to continue trading. On to the next trade!

- Market downturn brought price down to stop loss
- Time remaining on trade was less than 3 weeks
- Probability of price moving to amount needed for gain reached a low.


 ** 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

Yesterday, a spread trade in Bank of America $BAC was opened. A $32 call/$27 put spread expiring on March 16th was purchased for $0.85. The expectation is for the trade to get to $1.50. A stop loss has been created for the trade. Some reasons for the trade are below.

- steep drop with long bullish tail on Friday
- price on the 50 day average
- Market Volatility high


** 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 Spread Trade Closed at Stop Loss

The stop loss price point for the spread trade on Bank of America has been reached and the trade has ended. The trade was closed at $0.42 before fees and commissions. KDK Options is very grateful for the stop loss process and will now research for other trades. Having stop losses keeps KDK Options in business when it gets a trade wrong. Some reasons for the trade are below:

- Escalation of words between the US and North Korea

- Time left on trade shrinking to a point where probability of necessary move in either direction is low.

A spread trade with Japanese Yen ETF FXY (link here) is still open. 

If you would like up to the moment notice of trades or research that KDK Options is doing, please fill out this form (link 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 **

XLF Spread Trade Closed at Stop Loss

The recent XLF spread trade was stopped out. KDK Options will review the trade as always to see what improvements can be made in order to make better trading decisions. We are glad that stop losses are in place and are ready to make the next trade that shows 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 **

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 **

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**

Week (4/8) In Review (VXX, more)

KDK Options purchased a VXX May 13th call option (link here). There were no sales during the week.

The trade will continue into next week. Here are some metrics

Security	Option	Option Purchase Price	Current Option Price	Current Security Price	Option End Date	Option Sell Price
VXX	May 13 $21 call	$0.84	$0.88	$18.46	5/13/2016	Current Holding

** 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. **
Be sure to also check out our stock page, KDK Fund.

Apple Call Trade Ends

The Apple December $130 call trade ended with the stock declining and the option price hitting the stop loss price. Some reasons for the trade ending are below.

- KDK Options money management policies are designed to make sure that we are always able to capitalize on opportunities. This requires a specific design towards stop loss policy when a legitimate opportunity slips into hope territory.

- The likelihood of a rally past $130 by December 18th was greatly diminished by the stock falling below $120.

- The weekly chart showed a candle top last week with a strong red candle this week.

- While still bullish on Apple in general, the December time frame for the trade required a consistent bullish move which yesterday's action removed.

MS Oct $40 Call Trade Ends

Unfortunately, the Morgan Stanley $40.00 call trade got caught up in the Chinese Yuan devaluation and hit KDK Option's stop loss price. The trade was sold at $0.42 per contract.

One big reason KDK Options is able to continue trading successfully is that there are stop losses set before the trade happens. One good rule of thumb to live by is to cut losses short (like this one). Could the trade come back and be successful? Absolutely. But there is a higher probability that it doesn't. Which is sometimes a killer on trading accounts. Better to accept the medicine and move on to the next trade.

KDK Fund is currently researching other trades.

** 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. **

Be sure to also check out our stock page, KDK Fund.