KDK Fund Dec 28 Weekly Report (UUP, Year End)

KDK Fund had a quiet week. The UUP Jan 4th week (ending Jan 24) $21.50 call is still owned. UUP is currently trading around $21.50.  KDK will keep the trade on looking at the following events:

- employment numbers
- Yen actions
- Euro actions
- Fed Reserve actions

With 2013 done, KDK Fund is eagerly awaiting 2014. Lessons were learned in 2013. There were trades that made money but did not have great set ups and there were trades that lost money but had good set ups and exits. The lessons learned during 2013 will no doubt improve the skill and results of 2014.

May everyone have a healthy and successful investing and trading 2014.

You can also follow KDK Fund at its Facebook page (here), Twitter handle @kdkfund, and Google plus

**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing.**

KDK Fund Dec 21 Weekly Report (IAU, UUP, REIT, and more)

KDK Fund had the busiest week in its existence so far. It was a whopping 2 trades :). KDK Fund sold its December IAU $12.00 Put. You can read about it here. It also bought a Jan 4th week UUP $21.50 call option.  You can read about the specifics including why the trade was made here.

KDK Fund also found a Real Estate REIT named Realty Corp. that it will purchase shares of in 2014. The dividend is currently at 5% and is given on a monthly basis.

**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing.**

New Trade in UUP Jan $21.50 Call Option

A new options trade has been made for KDK Fund. The January week 4 UUP $21.50 call option has been purchased for $0.25. UUP is currently trading at $21.67. The goal for the trade is $0.75. The trade will end on Friday, January 24th. Reasons for the purchase are as follows:

- Recent Federal Reserve decision to taper QE

- Increased GDP points to further strength in economy and further tapering of QE

- Increased GDP of previous quarter points to possible upward revisions of current quarter.

- Possible double bottom forming a W formation (there are 3 W formations marked previously in the chart).

- Japan and Europe still in the middle of their own QE programs

- US Government passing actual budget that provides more stability to market and economy

- Cost of trade showed only $0.08 of time value when the trade was made.


 **All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing.**

End of IAU $12.00 Put Trade

The IAU $12.00 Put trade has ended. The put was sold for $0.35. That is a gain of $0.10 on the trade before commissions and fees. IAU was trading at $11.60 at the time of the options sale.

KDK will now look in the market over the next week to find another options trade.

**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing.**

Importance of Dividends

Building a solid dividend base should be one of your first priorities when building a long term portfolio. The advantages include quarterly cash payments for each security, the opportunity to reinvest those cash payments (regularly at no cost) for increased wealth, regular cash flow, and more. KDK Fund will be finding securities with a decent dividend so as to be able to return a percentage back to investors.

Researching how to find stable securities with a growing dividend amount is not that hard. You can use most any financial web site like Yahoo! Finance. Dividendchannel.com is also a decent resource.

**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing.**

KDK Fund Weekly Update (IAU trade, and more)

- The IAU December $12.00 trade still continues into next week. The current price of the options is $0.10. The projection for the price of the option is still $1.00. IAU is currently priced at $12.01. IAU moved  $   for the week.

        - IAU is butting down against support.
        - The Federal Reserve meets on Tuesday and Wednesday that should have a significant impact
        - End of year tax selling should be occurring with Gold ETF's like IAU
        - Time Value still high on the option

** This blog is just information and opinion regarding a particular fund. It is not to be taken as a recommendation to buy or sell any security. Do your own due diligence before trading or investing.**

Sticking To Your Plan - Analyzing Risk and Reward

Recently, an opportunity to take a position in 3D Systems came through for the fund. As written here before,  3D Systems looks to be on track past 80 and KDK Fund is not sure how far it could go in 2014. But the opportunity came with an added risk of needing capital that is currently assigned elsewhere in 2014. This was a big test for the fund. Take the risk for large gain or stick to your plan and gain less. The difference maker for this decision was the percentage amount the risk carried over the percentage gain difference that trading 3D Systems over other investments would have brought.

When this analysis occurred, it was made plain and clear that the trade in 3D Systems would have to wait just a little while longer. The potential loss would have been too great a burden on another part of the 2014 investing plan to warrant such a trade. This doesn't mean the trade will not happen in 2014. It most probably will happen. Just further down the road.

It is one of the fund's beliefs that the value of good analysis sometimes comes from knowing what not to invest in or trade. But it is not easy to follow. The thought of large gains can have a big emotional effect on how investment and trading plans are made. It can even effect your psychological status about the trading plan. But they can also damage investment and trading plans that do not do the proper analysis on both possible gains and losses. When a large opportunity comes up, the fund will first do a time analysis of the trade. Stepping away from the trade button in order to analyze the trade fully can save your portfolio from destruction, which is far more important than gaining an extra percentage on the gain side.

Do you have any experience with this topic? Please share as this blog is looking to be a tool in developing a stronger investing and trading community.

Is 3D Systems The Next Tesla Stockwise

With the burgeoning business of 3D printing, a look at the companies stocks is necessary. 3D Systems is primed to take that great run of stock. The industry is growing by leaps and bounds. 3D Systems seems to be the lead company hardware wise.

This has the same feel as Tesla did last year at this time. A disruptive technology has been accepted by main stream media and consumers. There are large investments made in the industry. There will probably be buyouts.

KeaneVCC Idea Lab has written a couple of articles in regards to the development of 3D printing. You can read them here.

KDK Fund does not have a relationship with or own shares with any of the companies mentioned above at the time that this article was published. But it may in the future.

  ** This blog is just information and opinion regarding a particular fund. It is not to be taken as a recommendation to buy or sell any security. Do your own due diligence before trading or investing.**

KDK Weekly Report (IAU Put Trade and More) 12/7

KDK Fund once a week will write about the week's performance, the thoughts on the future trades, and other financial information thought to be relevant to the account.

- IAU December $12.00 Put Trade - During the week, IAU dropped from a close of $12.13 last Friday to a close of $11.93 this Friday. The put price stayed the same at $0.20. There was positive news on the economic, employment, and manufacturing numbers that were instrumental in this week's drop. The likelihood of the drop continuing is high as the Federal Reserve meets on the 17th and 18th of December to discuss the possibility of tapering the $85 billion monthly QE. Gold is nearing the yearly low. There has not been a large volume day to indicate that a bottom has been reached. Technicals and fundamentals are suggesting a continuation of the down trend. There is still quite a bit of interest in the trade as the time value is higher than expected. Positives for gold include buying pressure from China. KDK Fund will continue with the trade as it is. The goal is still $1.00 for the put. The trade will end by December 20. The initial post of this trade can be found here.

- The fund is gearing up to make its first trade of 2014. It will be made in either the first or second week of January. The plan is to buy Verizon, Ford, Google, United Healthcare, and Costco (not order specific) during the year.

** This blog is just information and opinion regarding a particular fund. It is not to be taken as a recommendation to buy or sell any security. Do your own due diligence before trading or investing.**