Financial Letter - February 3rd 2020
258th 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 2.1% weekly decrease. This decrease is do mainly to the increasing global fears of the coronavirus. The Utilities sector and the Consumer Discretionary sector led this week's increase.
As predicted by the technical indicators, the market experienced a correction this week. Presently, the technical indicators are neutral and we believe that overall the market remains bullish.
VIP accounts (CKL0522 Portfolio with ETFs) - 2020/02/03
Week of January 27th 2020
This week's strategy was a FENCE option strategy on the SPY. This strategy permits us to profit if the market goes up on the stocks, profit on the short calls if the market is neutral and protect our SPY shares against a correction with the Puts.
Here are this week's transactions:
- Opened 7 Short Calls SPY 2020/01/31 332 @ 1.83$ on the 23rd of january
- Opened 7 Long Puts SPY 2020/01/31 325 @ 0.49$ on the 23rd of january
- Rebought the 7 Short Calls SPY 2020/01/31 332 @ 0.01$ on the 31st of january
- Sold the 7 Long Puts SPY 2020/01/31 325 @ 1.17 on the 31st of january
- We kept the 700 shares opened because we believed the market is still bullish
Profit/loss of the week on the closed positions:
Profit on the 7 Short Calls SPY 2020/01/31 332 = 1.83 - 0.01 = 1 274$ US
Profit on the 7 Long Puts SPY 2020/01/31 325 = 1.17 - 0.49 = 476$ US
Net profit on the closed positions: 1 750$ US
Profit/loss of the week on the opened positions:
This week's loss on the 700 shares of SPY: (321.93 - 328.77) * 700 = -4 788$ US
Net Loss: 1 750 - 4788 = -3 038$ USD per client (loss of 1.21% vs 2.1% loss of the SPY)
VIP accounts (CKL0522 Portfolio on Futures Market) - 2020/02/03
This week's strategy was a "fence" strategy on the ESH20.
Here are this week's transactions:
- Short Call 2020/01/31 3330 @ 15.00$ on the 23rd of January
- Lont Put 2020/01/31 3280 @ 7.75$ on the 23rd of January
- Rebought the call 2020/01/31 3330 @ 0.05$ on the 31st of January
- Sold the put 2020/01/31 3280 @ 42.25$ on the 31st of January
- We kept the ESH20 contract because we believe the ES is still bullish
Weekly profit/loss on the closed positions
Profit on the Long Put = (42.25 - 7.75) * 50 = 1725$ US
Profit on the Short Call = (+15.00 - 0.05) * 50 = 747.50$ US
Net weekly profit on the closed ppositions: 2472.50$ US
Weekly profit/loss on the opened positions
Weekly loss on the ES contract = (3293.50 - 3224.50) * 50 = -3450$ US