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Financial Letter - December 30th 2019

Financial Letter

December 30, 2019

253rd issue (since 2015/01/24)

(1) We offer portfolio management services for futures market accounts with a minimum of 25K USD or the equivalent in CAD. 

(2) CKL Inc. offers an actively managed portfolio with US ETFs combined with option strategies. This portfolio requires a minimum of 250K USD or the equivalent in CAD.

(3) And evidently we offer high quality long term portfolio management with low fees (0.9%). This portfolio requires a minimum of 100K CAD. 

*No transfer of funds required.

For more information on any of these portfolios, write to us at info@charlesklangford.com.

The next intensive course:

  • Stratégies d'utilisation des marchés boursiers (18 janvier 2020)

Fore more information on these courses visit our seminars page:

http://www.charlesklangford.com/en/services/seminars

S&P 500 Index - The Center of the World's Financial Solar System

The S&P 500 index posts a 0.6% weekly increase to once again a new historic high. This increase is due primarily to the following sectors: Consumer Discretionary and Energy stocks. 

Technically speaking, SPY is showing a certain fatigue in it's uptrend. It's trend is still bullish but with signs of weaknesses. 

This week's active trading

VIP accounts (CKL0522 Portfolio with ETFs) - 2019/12/30

Week of December 23rd 2019

This week's strategy was once again a covered call writing strategy on half our UPRO positions. This strategy permits us to profit on our UPRO positions if the market goes up, to profit if the market is neutral on our short calls and to profit from the short calls if the market goes down. 

Here are the transactions of the week:

  • Bought 2000 shares of UPRO @ 69.76 on the 20th of December 
  • 10 Short Calls UPRO 2019/12/27 70.00 @ 0.55$ 20th of December
  • Sold 2000 shares of UPRO @ 70.83 on the 27th of December
  • Rebought the 10 calls UPRO 2019/12/27 70.00 @ 0.87$ on the 27th of December

Weekly profit on the strategy 

Profit on the 2000 shares of UPRO : 70.83 - 69.76 = 2 140$ USD
Loss on the 10 short calls UPRO 2019/12/27 70.00 = +0.55 - 0.87 = 0.32 * 10 * 100 = -320S USD

Net Profit: 2 140 - 320 = 1 820$ USD per client

VIP accounts (CKL0522 Portfolio on Futures Market)  - 2019/12/30

This week's strategy was a covered call writing strategy on the ESH2019.

Here are this week's transactions:

  • Long 1 contrat ESH2020 @ 3227$ on the 20th of December 
  • Short Call 2019/12/27 3250 @ 9.25$ on the 20th of December
  • Sold the contrat ESH2020 @ 3245 on the 27th  of December
  • Rebought the calls 2019/12/20 3250 @ 15.50$ on the 27th of December

Profit/loss on the strategy 

Profit on the contract ESH2020 = 3245 - 3227 * 50 = 900$ USD

Loss on the short calls = +9.25 - 15.50 * 50 = -312.50$ USD

Net Profit: 900 - 312.50 = 587.50$ USD per client

Live trading setion on the 23 of December 2019

We offer live trading sessions in parternship with Desjardins Online Brokerag.  During these sessions, we trade options live with real money in front of investors and show them how to benefit from the leverage affect of swing option trading. Here are the results of the last live trading session (13th of December 2019).

  1. 1) Long call QQQ 2019/12/27 204 @ 3.68$

Vente @ 4.91$ le 16 décembre 2019

Profit = 123$ ou 33.42%

  1. 2) Long Call SPY 2019/12/27 614 @ 6.14$

Vente @ 7.75$ le 19 décembre 2019

Profit = 161$ ou 26.22%

  1. 3) Spread à crédit avec Put à la hausse sur le SPY :
  • Long Put SPY 2019/12/27 305 @ 0.65$
  • Short Put SPY 2019/12/27 310 @ 1.17$
  • Fermeture du Long Put @ 0.01 le 27 décembre
  • Fermeture du Short Put @ 0.03 le 24 décembre

Profit = 50$ par option

  1. 4) Spread à crédit avec Call à la baisse sur le SPY :
  • Long Call SPY 2019/12/27 325 @ 0.09$
  • Short Call SPY 2019/12/27 320 @ 0.57$
  • Exercez sur le Short Call le 20 décembre
  • Achat de 100 actions SPY @ 320.56$ le 20 décembre
  • Fermeture du Long Call @ 0.01 le 27 décembre

Perte = 7$ par option

5) Spread à crédit avec Call à la hausse sur CAT :

  • Long Call CAT 2019/12/27 155 @ 0.14$
  • Short Call CAT 2019/12/27 150 @ 0.73$
  • Fermeture du Long Call @ 0.01$
  • Fermeture du Short Call @ 0.09$

Profit = 51$ par option

  1. 6) Achat de 10 actions de HGU @ 17.69$

Vente de 10 actions @ 18.09$

Profit : 4$ ou 2.26%

  1. 7) Achat de 10 actions de HOU @ 6.31$

Positions ouverte dont la valeur est de 6.71$ le 27 décembre

Profit : 4$ ou 6.34%

Résultats de la séance : 400$ sur une mise de fond* de 2 567$ =
15.58% en deux semaines

*La mise de fond sur les spreads à crédit est calculée sur la marge requise.

Happy New Year!

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