New spread trade in UUP

A new trade in UUP has been entered. A Feb 2 $24 spread trade has been purchased for $0.38 before commissions and fees. The goal of the trade is $0.80. A stop loss has been entered. Some reasons for the trade are below

- UUP crossed lower than $24.00

- Next support is $23.66.

- Likely rate rise not until March as all of last year's rate raises were during meetings that also had a press conference by chair as well as a summary of economic projections

- A reversal going higher will be quick with economic items like GDP and rate rise dates happening before expiration date.

- Euro is hitting resistance 

** 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 trade in FXY

A new spread trade in FXY has happened. A Jan 19, 2018 $88.00 call and a Jan 19, 2018 $83.00 put was purchased for $0.53 before commissions and fees. The goal for the trade is $1.10. A stop loss price has been Some reasons for the trade are below.

 - Yen is at a middle of a range
- Volatility picks up in January
- Central Banks will be busy in the next couple of months


** 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 Trade in TLT

Last week, a new spread trade in TLT has been initiated. A Dec 8th $129 call option and a Dec 8th $121 put option was purchased. The cost of the trade was $0.60 before commissions and fees. The goal of the trade is $2.00. A stop loss price has been added. Some of the reasons for the trade are below. 

- Economic announcements continue through December

- Technically, TLT is expected to either head to 130 forming a W, or continue its short term downtrend and breakthrough 120 to the downside.




** 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 **

TLT trade Closed at Stop Loss

Hello

The TLT spread trade was closed as it hit the stop loss price. On to the next trade! The post for the beginning of the trade is 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 **

New Spread Trade in TLT (Bond ETF)

This morning, KDK Options entered into a spread trade for the Bond ETF TLT. A Dec 1, 2017 $120.50 put and a $129.00 call option were purchased. The cost of the trade before commissions and fees was $0.67. The expectation of the trade is to end at $1.50. Some reasons for the trade are below.

- Budget/Tax Reform news affecting the deficit will be consistent.
- US Dollar moving
- Chart at an inflection point
     - Likelihood of $130+ or sub $120 is higher given news and currency movements around the world


** 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 Trade Closed for a Profit

The Bank of America Nov 3rd spread trade was closed out for a profit (original post here). The trade ended at a price of $0.79 before commissions and fees. Some of the proceeds will go to charity. Some of the proceeds will also go back to investors. Reasons for the closure of the trade are below. We will be looking at set ups for our next trade.

- Expiration was 2 weeks away
- Time value will decrease quickly from here on out
- Trade caplitalized on earnings

** 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

Hello

Earlier today, KDK Options executed a spread trade in Bank of America. A straddle ( 1 put and 1 call) were purchased for the Nov 3rd $24.50 put and $26.50 call. The cost of the trade was $0.56 before fees and commissions. The expectation is for the trade to reach $1.50. A stop loss has been set. Some reasons for the trade are below:

- Broke out of range to the upside

- Support is at $23.00

- Earnings are later this month

- Rate increase discussion continues

** 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 **