LD Lossdog Research
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KDS

2 source-linked records across the archive.

Trade idea

KDS Volatility Capture and Downside Protection

Given the recent 53% drop in Kendra Holdings (KDS), selling puts on the 10 or 11 strike prices provides a way to capture premium while offering downside protection. The strategy is based on the expectation that the stock will not rebound significantly in the short term, allowing the seller to profit from the premium. The recommendation to wait for options to be added to the platform ensures that the trade can be executed effectively. The strategy is suitable for traders who are bullish on the stock's potential recovery but want to mitigate risk through premium capture.

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StrategyVolatility Capture and Downside Protection
AssetEquity
ExpirationMarch
Time horizonShort-term (up to 45 days)
Entry / triggerOptions are available on the platform
Target / exitPremium capture
Invalidation / stopIf the stock price drops below the strike price, the trade may need to be adjusted or exited
SpeakerScott
Structure / legs
  • Sell 10 puts
  • Sell 11 puts
Risks
  • The stock may continue to decline, resulting in a loss if the put is exercised
  • Volatility may increase, affecting the premium and the trade's profitability
  • Options may not be available immediately, delaying the trade execution
Sell PutsequityKDS
high confidenceVerify in video at 24:24 ↗
Q&A

What's the efficient way to play a potential recovery in a stock like Kendra Holdings (KDS)?

The efficient way to play a potential recovery in a stock like Kendra Holdings (KDS) is to sell puts, particularly the out-of-the-money strikes. This strategy allows for capturing premium while providing a hedge against further downside. The recommendation is to wait for options to be added to the platform, then sell the 10 or 11 puts depending on the stock's price movement.

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Actionable takeawaySell puts on KDS once options are available, targeting the 10 or 11 strike prices to capture premium while protecting against further downside.
KDSOptionstrading strategy
high confidenceVerify in video at 24:24 ↗