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Financial Letter - February 10th 2020

Financial Letter

February 10, 2020

259th 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.

Our next intensive course:

  • Investissement stratégique dans les options (February 22nd, 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 (SPY and derivatives) posts a 3.2% weekly increase. The tecnhology sector, the materials sector and the health care sector led this week's increase. 

This week, the SPY regained all of last week's drawdown. It closed the week at similar levels of that of mid January of this year. Still, the market remains volatile (VIX = 15.47%) and the VIX's exponential moving everages are still crossed upwards which indicates that technical indicators are less reliable than usual. Overall the market's trend remains bullish. 

VIP accounts (CKL0522 Portfolio with ETFs) - 2020/02/10

Week of February 3rd 2020

Because of the gaps in the SPY's graph, this week's strategy was to keep our existing positions on the SPY but to add a condor on the SPY in order to benefit from the inflated option premiums due to the high volatility index. 

Here are this week's transactions:

  • Opened 7 Long Calls SPY 2020/02/07 335 @ 0.09$ on the 31st of January 2020
  • Opened 7 Short Calls SPY 2020/02/07 330 @ 0.79$ on the 31st of January 2020
  • Opened 7 Long Puts SPY 2020/02/07 315 @ 1.26$ on the 31st of January 2020
  • Opened 7 Short Puts SPY 2020/02/07 320 @ 2.31$ on the 31st of January 2020
  • Sold the 700 shares of  SPY @ 332.76$ on the 7th of February 2020
  • Closed the 7 Long Calls SPY 2020/02/07 335 @ 0.02$ on the 7th of February 2020
  • Closed the 7 Short Calls SPY 2020/02/07 330 @ 2.97$ on the 7th of February 2020
  • Closed the 7 Long Puts SPY 2020/02/07 315 @ 0.00 (expired without any value) on the 7th of February 2020
  • Closed the 7 Short Puts SPY 2020/02/07 320 @ 0.01$ on the 7th of February 2020

Profit/loss of the week on the closed positions:

Condor on the SPY 2020/02/07: 

LC 335: -0.09 + 0.02 = -0.07
SC 330: +0.79 -2.97 = -2.18
SP 320: +2.15 - 0.01 = +2.14
LP 315: -1.22 + 0.00 = -1.22

Loss of 931$ 

Weekly profit on the 700 shares of SPY:

(332.76 - 321.73) * 700 =

Profit of 7 721$

Net Profit: 7 721 - 931 = 6 790$ US per client

VIP accounts (CKL0522 Portfolio on Futures Market)  - 2020/02/10

This week's strategy was to keep our ESH20 contract and add a condor on the ES and on gold (GCJ20). 

Here are this week's transactions:

  • Opened LC ESH20 2020/02/07 3350 @ 1.00$ on the 31st of January 2020
  • Opened SC ESH20 2020/02/07 3300 @ 8.00$ on the 31st of January 2020
  • Opened SP ESH20 2020/02/07 3200 @ 20.75$ on the 31st of January 2020
  • Opened LP ESH20 2020/02/07 3150 @ 11.25$ on the 31st of January 2020
  • Opened LC GCJ20 2020/02/07 1630 @ 1.00$ on the 31st of January 2020
  • Opened SC GCJ20 2020/02/07 1610 @ 8.00$ on the 31st of January 2020
  • Opened SP GCJ20 2020/02/07 1530 @ 20.75$ on the 31st of January 2020
  • Opened LP ESH20 2020/02/07 1510 @ 11.25$ on the 31st of January 2020
  • Sold the contract ESH20 @ 3338.25$ on the 7th of February 2020
  • Closed LC ESH20 2020/02/07 3350 @ 0.30$ on the 7th of February 2020
  • Closed SC ESH20 2020/02/07 3300 @ 37.50$ on the 7th of February 2020
  • Closed SP ESH20 2020/02/07 3200 @ 0.05$ on the 7th of February 2020
  • Closed LP ESH20 2020/02/07 3150 @ 0.00 $ (expiré sans valeur) on the 7th of February 2020
  • Closed LC GCJ20 2020/02/07 1630 @ 0.00 $ (expiré sans valeur) on the 7th of February 2020
  • Closed SC GCJ20 2020/02/07 1610 @ 0.10$ on the 7th of February 2020
  • Closed SP GCJ20 2020/02/07 1530 @ 0.05$ on the 7th of February 2020
  • Closed LP GCJ20 2020/02/07 1510 @ 0.00 $ (expiré sans valeur) on the 7th of February 2020

Weekly profit/loss on the closed positions

Condor on the ESH20 2020/02/07: 

LC 3350: -1.00 + 0.30 = -0.70
SC 3300: +8.00 - 37.50 = -29.50
SP 3200: +20.75 - 0.05 = 20.70
LP 3150: -11.25 + 0.00 = -11.25

Loss of 1037.50$ US

Condor on GCJ20 2020/02/07:

LC 1630: -2.80 + 0.00 = -2.80
SC 1610: +5.80 - 0.10 = 5.70
SP 1530: +0.50 - 0.05 = 0.45
LP 1510: -0.40 + 0.00 = -0.40

Profit of 147.50$ US 

Weekly prodit on the ESH20 contract:

(3338.25 - 3224) * 50 =

Profit of 5712.50$ US 

Net Profit: 5712.50 + 147.50 - 1037.50 = 4 822.50$ US per client

The team at CKL inc. wishes you a great week!

 

 

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