New Call Purchase for XLF

KDK Options has purchased a XLF January $20.00 call option. The cost of the trade was $0.45 before commissions and fees. The expectation is for the trade to get to $1.00. Some reasons for the trade are below:

- Banks are starting to move in a trend upwards
- XLF provides some protection in the form of diversification (avoiding a sharp Wells Fargo drop)
- Trading comps were up
- M&A looks to be heating 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. **

Square Oct Call Option Purchased

Hello

This week, an October $12.00 call option was purchased. The price paid was $0.40 before commissions and fees. The expectation is for the option to reach $1.00 before expiration. Some reasons for the purchase include

- trend is positive
- 50 dma crossing over 200 dma
- cup part of "cup and handle" formation being made
- Merger discussions heating up for Twitter
- gap to 13 needing to be filled


** 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. **

TLT Put trade started

KDK Options has entered into a TLT $132.50 September 9th Put trade. The cost before commissions and fees was $0.40. The goal for the trade is $2.50. A stop loss level has been created. Some of the reasons for the trade are below.

- Technical top reached

- Continued uptrend in the stock market

- US employment picture picking 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. **

Ford Trade Stopped Out

The call trade has been stopped out. Those earnings were terrible. That was  a bummer. Back to the grind ;).


** 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. **

New Call Trade in Ford

KDK Options purchased a September $13.75 call option. The price before commissions and fees was $0.48. The expectation is that the trade will end at $1.25. There has been a stop loss price figured out. Reasons for the trade are below:

- Ford releases earnings tomorrow. With a good report, the $14.00 resistance should be breached and $15.00 should be quickly reached.

- GM released good earnings and saw a 5% bump in their stock price. A similar move in Ford would take the stock up to $14.60 immediately, putting the option in the money by $0.90.
 
- The 15 day has moved above the 200 day for the first time in over a year



Our stock arm, KDK Fund (link here), owns shares of Ford.


** 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. **

BAC trade over.....50% Return

The current Bank of America September $14.00 call trade has ended. The call hit the stop loss price of $0.62. New trade opportunities are being analyzed. The return result of the trade after fees and commissions was 50%.

A portion of the profits will be donated to charity.


 ** 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. **

BAC Call Trade now Profitable

Because of the earnings announcement, Bank of America stock has moved up over 4% and the current open call trade (link here) is now at a point where the stop loss price has moved into profit territory. The next trade will likely occur within 1-2 weeks of this trade ending (Expiration is Sept 19th).

KDK Options is grateful and looking forward to committing a portion of its profits from the trade to charity.

** 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. **