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.**

No comments:

Post a Comment