Financial Letter - January 27th 2020
257th 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 posts a 1% weekly decrease. This decrease comes mainly from the global fear of the coronavirus. The Utilities sector and the Real Estate sector led this week's increase.
Some of SPY's technical indicators diverge from its price graph and this indicates a temporary fragility in its uptrend. Fundamentality, the SPY remains bullish.
VIP accounts (CKL0522 Portfolio with ETFs) - 2020/01/27
Week of January 20th 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 protects us against a correction with the Puts.
Here are the transactions of the week:
- Bought 700 shares of SPY @ 331.49$ on the 17th of January
- 7 Short Calls SPY 2020/01/24 332 @ 1.17$ on the 17th of January
- 7 Long Puts SPY 2020/01/24 325 @ 0.23$ on the 17th of January
- Rebought the 7 calls SPY 2020/01/24 332 @ 0.52$ on the 23rd of January
- Sold the 7 Puts SPY 2020/01/24 325 @ 0.03$ on the 23rd of January
- We kept our 700 shares of SPY
Weekly profit/loss of the strategy
Profit on the 700 shares of SPY : 331.72(price of SPY on the 23rd of January) - 331.49 = 161$ US
Profit on the 7 short calls SPY 2020/01/24 332 = 1.17 - 0.52 = 455$ US
Loss on the 7 long puts 2020/01/24 325 = 0.03 - 0.23 = -140$ USD
Net Profit: 455 - 140 + 161 = 476$ USD per client
VIP accounts (CKL0522 Portfolio on Futures Market) - 2020/01/27
This week's strategy was a "fence" strategy on the ESH20.
Here are this week's transactions:
- Long 1 contrat ESH20 @ 3325$ on the 17th of January
- Short Call 2020/01/24 3330 @ 10.75$ on the 17th of January
- Lont Put 2020/01/24 3280 @ 3.80$ on the 17th of January
- Rebought the call 2020/01/24 3330 @ 4.15$ on the 23rd of January
- Sold the put 2020/01/24 3280 @ 0.65$ on the 23rd of January
- We kept the ESH20 contract
Profit/loss on the strategy
Profit on the ESH20 contract = (3326 (price of the ESH20 on the 23rd of January) - 3325) * 50 = 50$ US
Profit on the short call = (+10.75 - 4.15) * 50 = 330$ US
Loss on the long put = (0.65 - 3.80) * 50 = -157.50$ US