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.**

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.**

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.**

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.**

First Options Trade Made ($12.00 December Put)

The account just purchased the IAU December $12.00 put. The cost was $0.25 before commissions and expenses. The goal of the trade is to see the option sold at $1.00.

The trade was made based on the following fundamental and technical factors:

- Taper talk is back

- The chart is hitting the bottom of its range (strong possibility of breaking through to $11.00)

- Strong talk about capital rotation out of gold into other assets like stocks

- End of year sales of losers to gain tax advantages