High Call Value in Amicus Therapeutics

There has been an alert. We noticed that there is a high value placed in the options for Amicus Therapeutics (FOLD).

The January 17th $10.00 call option bid is currently $0.30. With the stock currently at $9.74, someone out there is offering the opinion (with their option bid) that the stock is likely going higher by about 7% (the stock will need to surpass $10.30 for any profit) in the next 2 weeks. There are 40 etf's that contain shares of FOLD including IWM and BBP (Information courtesy of etf.com

 Options players can move on this in 2 ways.

- First, bullish traders can purchase contracts of the option and hope through a rise in the stock, the option increases in value before the January 17th expiration date.

- The second option is for call sellers and revenue generators of the stock out there. They can sell the call option(s) on any blocks of 100 shares earned for the $0.30 per contract. It provides a safety valve in pushing your cost basis down by $0.30 per share. It also locks in a 2 week profit of about 7% ($0.56) at the $10.00 strike price in 2 weeks if your purchase price is around today's price. 

Technically, there is a possible abc ending ready to get to a leg 3 starting.  A chart is below

 





 ** 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 **

Call Value High in Colony Northstar (CLNY)

There has been an alert. We noticed that there is a high value placed in the options for Colony Northstar (CLNY).

The February $5.00 option bid is currently $0.15. With the stock currently at $4.70, someone out there is offering the opinion (with their option bid) that the stock is likely going higher by about 10% (the stock will need to surpass $5.15 for any profit) in the next 2 months.

Options players can move on this in 2 ways.

- First, bullish traders can purchase contracts of the option and hope through a rise in the stock, the option increases in value before the February 21st expiration date. Earnings are likely the first week of February. With most banks reporting in mid January, a push up in anticipation for earnings could create a nice level of revenue for the option.
- The second option is for call sellers and revenue generators of the stock out there. They can sell the call option(s) on any blocks of 100 shares earned for the $0.15 per contract. It provides a safety valve in pushing your purchase price down $0.15 per share. It also locks in a profit of about 10% at the $5.00 strike price in 2 months if your purchase price is around today's price.  Given the troublesome earnings of the company, some insurance might not be bad thing either.

 Technically, the chart has hit the $4.50 range 3 times in the last year with a bounce happening afterwards. A yearly daily chart is below.

 



 ** 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 **
   

XHB Call Options Purchased

Call options were purchased in homebuilder XHB. The Jan 17, 2020 $49 call options were purchased for $0.03 each. The expectation is to see it rise to $0.10. Reasons for the trade are below.

- Homebuilders confidence is up
- Rates are rising
- Economy going well
- Earnings likely 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 and VXX Call Options Purchased

For next week's trade, we have purchased a Jan 3rd $31.00 XLF call option and a Dec 20th $18.00 VXX call option. The cost of the trade was $0.40. The expectation is for the trade to reach $1.00. Stop loss pricing is in effect. Some reasons for the trade are below.

 - Market is at all time highs
- Different kind of spread trade
- XLF broke out with a big positive candle this week
- VXX is at bottom of its range
- Trade deal confusion persists
- Santa rally?

*An earlier version incorrectly had Dec 27th as the date of the XLF option.*

 ** 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 SPY

Hello,

A new spread trade in SPY has been made. A Dec 2nd $311 put option and two Dec 2nd $318 call options were purchased for $0.28.

The goal of the trade is to reach $1.00.  Stop loss pricing has been instituted.Some reasons for the trade are below.

- Getting this amount of time (5 days) for as small a total premium of $0.30 is worth the risk.
- Upward trend is strong
- Likely heavy news cycle between now and Monday (Trade, Impeachment, Fed, Black Friday Numbers)

Happy Thanksgiving!



** 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 **

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 **

New Call Trade With Nasdaq ETF SQQQ

A new call trade has been made in Nasdaq short ETF SQQQ. An October 18th $35.00 call has been purchased for $0.97 before fees. The goal of the trade is to see $2.00. Stop pricing has been set up. Reasons for the trade are below.

- Economic Numbers out and not looking to good
- Lots of Fed speakers next week
- 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 **