Celeritas Fund Review #4
Monthly review of the Celeritas main fund and the Celeriats option fund
Hello everyone welcome back to Celeritas Capital! Today we are reviewing how our portfolios did in the month of June. Also quickly I’d like to welcome our new subscribers both free and paid. Enough chitchat lets dive right into it!
Main Fund Performance:
Again I’m making a slight change to how the Main Funds performance is displayed. The chart below shows the Main Funds performance during this year. (Figure 1) We are currently up 17.7% YTD. (Figure 1) The total P&L for the fund is around 52% since inception. June was a pretty decent month for the Main Fund. YTD we have out performed the S&P 500 by 12.32%.
Option Fund Performance:
The first month for the option fund was decently successful. There was definitely some mistakes made on my part while trading this month but we will get into that in the next section. For it’s first month the Celeritas Option Fund ended positive with a gain of approximately 4%. (Figure 2) This is down from a high of 6.54% earlier in the month. (Figure 2)
Reviewing Trades:
Main Fund Review:
First we will review the trades from the main fund. Below is Figure 3 which shows the trades that were closed in June. (Figure 3)
Now lets take a closer look at the gold futures trade. I entered this trade on May 28th, the main reason I took this trade was technical reasons. I did close this position too early with hindsight but that is just part of trading. (Figure 4) Overall I’m happy with the gains from this trade.
My personal favorite trade this month was a long mini S&P 500 futures position. (/MES) I’m still currently long 5 /MES contracts but I will touch on that later. The reasons I entered this trade are simple, the first and main reason was due the fact of liquidity and growth both being very strong at the moment. Thus making it easier for a equity melt to happen due to investors being underweight or short. I also entered the trade for technical reasons. I will keep buying dips on /MES for at least the next couple of months as I think the US economy is rather strong currently and I see more upside for equites. It is very likely since the market just hit a new all time high that we will see traders and investors who weren’t long equites into the rally start to pile into equites so they can chase the returns.
Option Fund Review:
Below is figure 6 which shows all the option trades for the month of June. (Figure 6) I am not super happy with the trades this month but you live and you learn. Here’s to the month of July. Lets review some of the more successful trades from June.
First I want to highlight the MSTR 0.00%↑ option trade. On May 21st I sold MSTR 0.00%↑ calls with a strike of 435 and an expiration of June 13th. I also bought puts with a strike of 395 and the same expiration as the calls. My reasoning behind this trade was because BTC was nearing a key resistance level. MSTR 0.00%↑ was trading at a premium when compared to BTC as well. (BTC and MSTR 0.00%↑ are highly correlated) I sold 5 calls for 14.55 ($1,455) and bought back 2 contracts for 1.13. ($113) I bought back the final three contracts for 0.09 ($9) giving us a return of $7,022 for the five calls. (Figure 7) Unfortunately a size able amount of the gains from the calls were wiped out by losses from the puts. The final P/L for this trade was $2,112.
If your interested in more information regarding MSTR 0.00%↑ and why it’s trash company, be sure to read my post on MSTR 0.00%↑ below.
Next lets take a look at the next trade which is an AVGO 0.00%↑ call option. On May 21st I bought three contracts for calls at with a strike of 435 expiring June 20th. I bought these calls to gain exposure to tech and because of technical reasons. The calls were bought for 12.25 ($1,225) and I sold the first contract for 24.85 on June 3rd. (Figure 8) The final two contracts were sold for 20.50 on June 11th, this gives a P/L of $2,910 which is not bad at all. (Figure 8) I should have left one contract as a runner and moved my stop loss to breakeven so I could have captured more upside.
The final trade I would like to take a look at is a /MES option trade. On May 28th I bought seven /MES puts with a strike of 5950 and an expiration of June 6th. The reason I took this trade was to hedge my long equity position in both funds. The puts were bought for 25.00 ($125) each contract. (Figure 9) On May 30th we got a decent dump on /MES so I sold 4 contracts for 84.50 ($422) and finally I sold the last three contracts on June 3rd for 30.50 ($152) giving us a P/L of $1,250. (Figure 9)
Current Fund Holdings:
Figure 10 shows all of are currently open positions in the main fund. (Figure 10) The largest asset class in the fund is currently futures with 4 positions making up 31% of the fund. (Figure 11) In the next month or so I plan on picking up some more US equites to diversify the fund.
Conclusion:
Thank you for reading this months Celeritas Capital Fund Review. If your interested in getting our trades sent to you in real time please join my Substack chat by clicking the button below. Good luck trading this month everyone! Make sure you keep an eye on the yield curve as it will be a key signal to watch.
DISCLAIMER: We are not Financial Advisors, and all information presented is for educational purposes ONLY. Financial markets can be highly volatile, so good risk management is a must.