Wednesday, October 30, 2013

Options Plan for 2014

Hey all

The options plan for the KDK Fund will consist of using a portion of funds to speculate on stock and ETF options in order to capitalize on momentum moves. The focus of the options account will be to find options on stocks or ETF's that have the likely hood of a large enough move in either direction during a particular period of time so that it can produce 100%+ returns on the option purchased. After commissions, taxes, and fees are taken out of winning trades, 50% of the rest of the profit will be put into the stock/bond portion of the fund. A losing trades max loss will occur at the 50% level. A rules base is being created to find the options that will be traded.

There are many reasons why a particular option will be purchased. Technical and fundamental research will be used for analysis. News will be a big driver. Time frames on the options will vary. There could be an earnings release with plenty of volatility within the stock or ETF. There could be a government decision made that will affect currency and general stock markets. There could be a management shakeup. There could be a natural disaster. The stock or ETF could be in a very predictable trend. There could be speculation of a merger.

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

Tuesday, October 29, 2013

Long Term Investments For 2014

Hello all

The fund has spent the last couple of months looking at what to invest in for 2014 and has come away with 5 companies. As of right now, the list includes Ford, Verizon, Costco, Google, and United Healthcare. The feeling is that this group of stocks provide a mix of strong dividend and stock price appreciation.

The fund is looking to invest in Ford primarily for its growth prospects. North American sales are good and Europe seems to be bottoming out. Ford also continues to be led by a very good management team and gives a 2%+ dividend (annual) in the third month of the quarter.

The fund is looking to invest in Verizon because of its leadership in the communications sector. It gives a 4%+ dividend (annual) in the second month of the quarter.

The fund is looking to invest in Costco because of its outstanding leadership and steady stock price growth. Costco gives a 1%+ dividend (annual) on the second month of the quarter.

The fund is looking to invest in Google because of its growth prospects in most of its product areas. Their innovative processes combined with their business plan execution shows a large promise of profit.

The fund is looking to invest in United Healthcare because of its growth prospects. The Affordable Care Act should help with new enrollment. The company gives a 1.5%+ dividend (annual) on the third month of the quarter.

All five of these companies have at least what can be considered strong balance sheets.

The trailing PE ratios are 11 for Ford, 20 for Verizon, 29 for Google, 13 for United Healthcare, and 26 for Costco.

 Purchases will begin in January of next year. Purchases and sales of stock will go through Sharebuilder.

Monday, October 21, 2013



This space will be used to describe the actions and trades made for the KDK Fund. For more information on the Fund and its investments, email with KDK Fund in the title.

Happy Investing/Trading!

KDK Fund Team