UUP Option Trade
UUP ended the week at $21.67. The Jan 24 $21.50 call option bid price is now $0.18. That is a drop of $0.08 from last week. The option trade will continue as there is still a probability that the price of the ETF will rise due to upcoming economic reports being released in the next two weeks.
KDK Stock Fund
The plan is to make a purchase next week. The Fund will be purchasing shares of the Realty ETF Realty Income Corp.. The symbol for this ETF is O. Currently, the price of O is $38.50. Reasons for the trade include a monthly dividend and decent current valuation.
Other stocks on the future purchase list include Starbucks, Verizon, Ford, and Costco. KDK is always looking investment ideas. KDK Fund can be reached at kdkfund@gmail.com.
**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.**
Showing posts with label US Dollar. Show all posts
Showing posts with label US Dollar. Show all posts
Saturday, January 11, 2014
Tuesday, January 7, 2014
Is Oil Ready To Drop?
One of the ways that KDK Fund makes money is through short term (less than 6 months) speculative options trading. For example, KDK Fund currently owns a UUP (US Dollar) $21.50 call with an expiration of January 24th. The most recent status of the trade can be found here. KDK Fund is regularly learning about other opportunities.
One such opportunity that is starting to gain favor with KDK Fund is the idea that oil prices are set to fall for 2014. There are a few items that KDK Fund has found to support this argument.
One major piece of the argument rests in the fact that the world is starting to produce a growing amount of oil. So much so that there are multiple reports now that the rate of growth is to outpace the growth of the refining ability and global GDP estimates. In the United States, oil growth is getting to a point where projections are that the US will be oil independent in the next 5-7 years. Mexico is looking to release land that was under government control to private oil companies for exploration research. This could nearly double output. When you add oil output from Iraq and other places in the Middle East on the market, the result should be pressure on the market price.
Another large item that supports this view is the expected rising value of the US Dollar. As the dollar increases in value, the price of oil should decrease accordingly. With the Federal Reserve decreasing their QE assistance, the value of the US Dollar should increase. This is part of the reason the current dollar trade is going on.
The USO ETF is nearing multi year support in the $32.00 region. A break of that could drop the ETF to $30.00 first and a continuation to as low as $25.00.
KDK Fund will be watching the ETF USO with eyes particularly on the put side of the options market. No trade is planned yet; just research. Any action taken will be reported.
**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.**
One such opportunity that is starting to gain favor with KDK Fund is the idea that oil prices are set to fall for 2014. There are a few items that KDK Fund has found to support this argument.
One major piece of the argument rests in the fact that the world is starting to produce a growing amount of oil. So much so that there are multiple reports now that the rate of growth is to outpace the growth of the refining ability and global GDP estimates. In the United States, oil growth is getting to a point where projections are that the US will be oil independent in the next 5-7 years. Mexico is looking to release land that was under government control to private oil companies for exploration research. This could nearly double output. When you add oil output from Iraq and other places in the Middle East on the market, the result should be pressure on the market price.
Another large item that supports this view is the expected rising value of the US Dollar. As the dollar increases in value, the price of oil should decrease accordingly. With the Federal Reserve decreasing their QE assistance, the value of the US Dollar should increase. This is part of the reason the current dollar trade is going on.
The USO ETF is nearing multi year support in the $32.00 region. A break of that could drop the ETF to $30.00 first and a continuation to as low as $25.00.
KDK Fund will be watching the ETF USO with eyes particularly on the put side of the options market. No trade is planned yet; just research. Any action taken will be reported.
**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.**
Saturday, January 4, 2014
KDK Fund Week Ending Jan 3 (UUP Call Trade, Upcoming Purchases and more)
Hey everyone
The current UUP $21.50 January 24th call option trade will continue.. The bid price of the options is currently $0.26. The target price of the option is still $0.75. UUP moved up during the week to $21.74.
Preparations for upcoming stock and ETF purchases continue. The first purchase should be coming in the next week or so.
**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.**
The current UUP $21.50 January 24th call option trade will continue.. The bid price of the options is currently $0.26. The target price of the option is still $0.75. UUP moved up during the week to $21.74.
Preparations for upcoming stock and ETF purchases continue. The first purchase should be coming in the next week or so.
**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.**
Tuesday, December 31, 2013
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.**
- 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.**
Saturday, December 21, 2013
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.**
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.**
Friday, December 20, 2013
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.**
- 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.**
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