Financial Letter - November 25th, 2019
248th 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%).
*No transfer of funds required.
For more information on any of these portfolios, write to us at info@charlesklangford.com.
These are the upcoming intensive courses:
- Introduction aux marchés à terme (December 15th 2019)
For more informations on these courses, visit our website at:
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 decrease by 0.3% this week for the first time in seven weeks. This decrease is primarily due to the materials sector, the real estate sector and the anxiety over the trade situation between the US and China.
This graph of the SPY shows that since the price hit the upper level of the canal, there's a possible drawdown before it continues its bullish trend. However, if it is able to surpass 314$, the trend becomes even more bullish since there's an increase in speed in the SPY's highs.
This week's active trading
VIP accounts (CKL0522 Portfolio with ETFs) - 2019/11/25
Week of the 18th of November
This week's strategy was to keep our long positions on the UPRO (SPY +3X) and short calls for the week on half the positions. This strategy permits us to benefit on the short calls during a neutral or drop of the market or benefit from the other half of the long positions if the market continues to rise. We decided to close half of our UPRO positions at the end of the week to pocket the profit.
Here are the transactions of the week:
- 10 Short Calls 2019/11/22 63.50 @ 0.60$ on november 18th
- Rebuy the 10 Calls 2019/11/22 63.50 @0.07$ on november 22nd
- Sell 1000 UPRO @ 62.67$ on november 22nd
Weekly profit/loss on closed positions per client (options)
Short Calls: +0.60 - 0.07 * 100 * 10 = 530 USD$
Profit of 530 USD$
Weekly profit/loss on closed positions per client (ETF)
1000 UPRO sold @ 62.67$ (originally bought @ 56.68$ on the 23rd of July
(62.67$ - 56.68$) * 1000 = 5 990 USD$
Profit of 5990 USD$
Weekly profit/loss on opened positions per client
Price of UPRO on november 18th: 63.12$
Price of UPRO on november 22nd: 62.69$
Weekly profit on opened positions = -0.43 * 1000 = -430 USD$
Loss of 430 USD$
Weekly net profit: 530$ + 5 990$ - 430$ = 6 090 USD$ per client
VIP accounts (CKL0522 Portfolio on Futures Market) - 2019/11/18
This week's strategy was to keep our long positions on the ESZ19 and to short a call for the week in order to benefit from the options price's time value. We decided to close our positions on the ESZ19 to pocket the profit at the end of the week.
Here are this week's transactions:
- 1 Short Call ESZ19 3120 22/11/2019 @ 11.25$ on the 18th of November
- Rebuy the Call ESZ19 3120 22/11/2019 @ 1.55$ on the 21st of November
- 1 Short Call ESZ19 3105 29/11/2019 @ 14.25$ on the 21st of November
- Rebuy the Call ESZ19 3105 29/11/2019 @ 13.25$ on the 22nd of November
- Sold 1 Contract ESZ19 @ 3103.75$ on the 22nd of November (bought at 3075.80$ on the 5th of November)
Weekly profit on closed positions per client
First Short Call: (+11.25 - 1.55) * 50 * 1= 485 USD$
Second Short Call: (+14.25 - 13.25) * 50 * 1 = 50 USD$
ESZ19 contract sold: (3073.80 - 3103.75) * 50 * 1 = 1497.50 USD$
Total weekly net profit: 485$ +50$ + 1497.50$ = 2032.50 USD per client
Here are some US stocks that gave a bullish signal:
- LB
- EWH
- ELAN
- VALE
- FXI