Southwest Airlines Nov $43 Call Trade Ends

The Southwest Airlines November $43.00 Call trade has ended. The call was sold for $1.15 before fees and commissions. That is a 92% gain from the purchase price of $0.60. The price of the stock at the time of sale was $43.30. Reasons for the sale are below.

- Price of option hit a stop price. The stop price set was $1.25. We are not too happy that Optionshouse was only able to fill it at $1.15.

 KDK Options is in the process of finding 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. **

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

Week 10/16 In Review (Southwest Airlines, more)

A Southwest Airlines November 43.00 call option was purchased (link here) . The Bank of America October 18.00 call option expired worthless. There is no scheduled time for the next purchase.  Details of current holdings are below.

Security	Option	Option Purchase Price	Current Option Price	Current Security Price	Option End Date	Option Sell Price
LUV	Nov $43.00 Call	$0.60	$0.66	$40.56	11/20/2015	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.

November Call Position Opened in Southwest Airlines

KDK Options has purchased Southwest Nov $43.00 call options. The price was $0.60. The goal is $1.50. Reasons for the trade are below.

- Broken $40.00 resistance.
- Lower oil prices
- bookings are strong


** 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.

New Purchase of Bank of America Call Options

KDK Options has purchased the Bank of America October $18.00 call options. The price of the option was $0.08. The goal of the trade is to see the option reach $0.25. Reasons for the trade are below:

- Plenty of upside in the stock

- Earnings run up probability is high

- Federal Reserve meets on the 16th and 17th

- Price of options allows for 5X gain in 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. **

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

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. 

Week (8/7) In Review (Morgan Stanley)

Hello

The current Morgan Stanley Oct $40.00 call option trade will continue. The current price of each contract is $0.84. The stock is currently priced at $38.58. That is a $0.10 less than the purchase price. Below is a link to the purchase blog. 

Purchase Blog

** 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. 

New Position Opened Up In Morgan Stanley

Today, KDK Options made a purchase of the Morgan Stanley October $40.00 call options. The cost of each option was $0.94 before commissions. The goal of the trade is for the option to reach $4.00 per contract. Some reasons for the purchase are below.

- Bank stocks are in an uptrend.

- Morgan Stanley has risen to the top of the trading business.

- The US Dollar is at a strong level.

- Morgan Stanley has retreated from a high of around $42.00 to a $38.75 support level

As always, we would like to thank OptionsHouse for executing the 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. **