Note: As stated in the first article for the GTC Sample Portfolio, we’re keeping our quantitative processes private; but will share the moves we make on an actual portfolio, and then show the results via a Grid / VAMI and performance statistics. And please note our risk statement. You can find the previous post for the GTC Sample Portfolio here.
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We post adjustments to our trades to both Tier 1 and Tier 2 Members as they occur. But it’s been a while since we have updated the trades in the various programs here at the public site. So let’s do that …
Equity Income Hybrid Core:
We still have all of the longer term positions for the purpose of building up an Income account. We bought 219 of SH at $11.47 on July 24th and we still have this position on in the morning of August 9th, before the cash Equity market open. We’ve really only begun to build out this program. It’s going to take some time; but at the moment this portion of the portfolio is currently paying an average monthly income of $17.29; and the Yield on Cost is about +2.79% and growing. At the moment, we are rolling such income back into similar future purchases. Year to date, for 2024 that account is at +3.27%. Currently, the positions consist of …
6 shares of Medtronic (MDT) at $82.979
3 shares of International Business Machines (IBM) at $170.06
30 shares of Invesco’s Emerging Markets Sovereign Debt ETF (PCY) at $18.72
13 shares of Invesco’s S&P 500 High Dividend Low Volatility ETF (SPHD) at $42.31
9 shares of SPDR’s Utilities Sector Fund ETF (XLU) at $62.22
6 shares of SPDR’s High Yield Bond ETF (JNK) at $91.17
13 shares of Kroger (KR) at $45.92
1 share of Coscto (COST) at $506.90
3 shares of Union Pacific (UNP) at $206.73
13 shares of Wells Fargo (WFC) at $41.82
4 shares of Diageo PLC (DEO) at $152.06
15 shares of WisdomTree’s U.S. Efficient Core Fund at $35.67
3 shares of Chicago Mercantile Exchange (CME) at $198.48
And beyond that, at the moment we are simply counting the dividends and capital deposits as they come in. I think for the month of August (thusfar), we are almost exactly flat. No gains, no losses.
Long-Short Valuation Process:
At the moment, we don’t have a whole lot going on in this portion of the GTC Sample Portfolio.
We are currently long 423 TBIL from $49.85. We also put on short position against the S&P 500 Index, by purchasing 100 shares of SH at $11.47 on July 24, 2024; and we still have that position on. At the moment? The Long-Short Valuation book stands at +0.39% for the month of July; and we’ve added about 8 BPS this month in the positive; and so stand at +4.80% for the year. We haven’t had any negative months thusfar in the year.
Short-Term Trading:
Hasn’t started out to be the best month trading, but we’ll see how we end up on the 31st.
From the last update, we had rolled the USO 74 Put to a USO 71 put. That 71 Put we closed for a loss of -0.93; and then sold the USO Aug 30 69 Put for 0.43; taking us to -0.50. The call side is nearly at a maximum profit, so that raises us a bit on the USO.
We held the previously mentioned Aug 16 SPY 580/590 Call spread for 0.80; 1 per 50k; and closed this today at near a max profit by closing it at 0.01. We are attempting to do the same with the IWM Call spread that we hold with an order to close it near max profit at 0.01.
In the last update? We tried to play a bounce in risk that didn’t work out in July. August gave us another trade that didn’t work out. The first phase of the trade worked. And then with the Yen Carry Unwind; the second phase of the trade caused a loss. So … at first we bought 100 TLT within the previously mentioned strangle; buying 100 at 94.64. We sold at 97.68 for a profit of +3.04 per 50k. We then bought 410 TBF at 23.10; and sold 210 TBF at 22.29. This caused a loss of -1.70; for a combined profit of +1.33.
For the second phase of that trade, we were long 100 TLT at 97.68; and long the remaining TBF. With the move on Monday? This blew out on us. 3+ sigma moves in the long end, was more than the trade could stand. At least we were able to capture +0.3149 in dividends from holding TLT through the dividend period. We exited 100 TLT at 94.87 and the 200 TBF at 22.21; causing a loss of -4.27. All told with commissions, and profit from the first half of the trade? It caused us to be down -2.94 all told with TLT and TBF.
We have made some of that back in premium sold. In addition to the previously mentioned 69 USO Put … we also sold 1 PLTR Sep 6 23 Put for 0.18; 1 per 50k, and sold 1 CME Sep 6 48 Put for 0.34. All told, the damage for the month stands at -3.49 in the short term trading book. We’ll see what we can do about getting that to the positive by the end of August.
Remember, that we are run a 7 day free trial for Tier 2 Members, in which we discuss the quantitative why, and how of these trades.
Stay safe and trade well …
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