Tonge Investments

T12 Income Portfolio



  • Strategy Options
  • Additional attributes Leverage
The T12 income process uses a leveraged ETF based on a broad index and creates income by selling covered call options in very short cycles.
This investment process is just that, an investment process and as such it is completely repeatable. The T12 income process uses a leveraged ETF based on a broad index and creates income by selling covered call options in very short cycles.
I created this process after years of working with individual stocks. I love individual stocks but have grown tired of them constantly blowing up and ruining portfolio performance. In today’s environment, any single stock can get crushed at any moment and this is just not necessary risk to be taking.
The T12 Income process was created to have an investment portfolio that is not subject to individual stock risk. Investing in a broad index fixes this problem and writing covered call options creates a very high income stream on a very consistent basis.This portfolio is also very sensitive to a downturn in the markets and will move to all cash if necessary.
All research is market-based and generally technical.
The T12 Income process uses one security 90% of the time and sells covered calls on it.
My research focuses on the overall movements of the entire market and is very sensitive to turning points. Day-to-day and weekly fluctuations are just noise but actual changes in the balance of power between buyers and sellers are taken seriously. I am not afraid to sell the entire portfolio if the market starts misbehaving.

Portfolio Manager performance

1.3%

Last 30 days

30D

3.9%

Last 90 days

90D

15.0%

Last 365 days

365D

Quarterly vs S&P500

Quarterly vs S&P500

Risk score

  • 6.2%

    Best quarter

  • -0.1%

    Worst quarter

    • 1.5% fee
    • $54,000 min
  • Required: Margin account
  • Required: Options trading permission

Portfolio Manager performance graph

Performance history disclosure

All performance information on this page is based on the performance of the Portfolio Manager’s account. Client performance may differ. Client account performance is displayed on the client dashboard.

Performance Portfolio inception December 31, 2015

as of September 25, 2017 Manager (net of fees ) S&P 500
Last 30 days 1.3% 2.2%
Last 90 days 3.9% 3.2%
Last 365 Days 15.0% 15.3%
Since inception (Annualized) 14.9% 11.6%
2017 (YTD) 11.6% 11.5%
2016 14.6% 9.5%

Risk metrics Last 365 days

as of September 25, 2017 Manager (net of fees ) S&P 500
Volatility 8.2% 7.6%
Sharpe Ratio 1.69 1.88
Sortino Ratio 1.88 2.70
Maximum Drawdown -3.4% -4.0%
Value-at-risk (95%, 1 week) -1.9% -1.8%
vs. S&P 500
Information Ratio -0.07
Alpha 1.7%
Beta 0.87
R-Squared 0.64

Exposure

100.0%
  • Cash

Top 5 securities

100.0%
  • Cash
View all

Latest transactions Average trades per month 1.0

Executed Symbol Security Type Price
September 05, 2017 SSO ProShares Ultra S&P500 Sell $91.64
August 24, 2017 SSO 170922C00091000 SSO Sep 22, 2017 91 Call Sell short $2.10
July 12, 2017 SSO ProShares Ultra S&P500 Buy $90.88
July 12, 2017 SSO 170811C00091000 SSO Aug 11, 2017 91 Call Sell short $1.50
June 05, 2017 SSO ProShares Ultra S&P500 Buy $90.42
June 05, 2017 SSO 170616C00090500 SSO Jun 16, 2017 90.5 Call Sell short $0.92
May 04, 2017 SSO 170519C00087000 SSO May 19, 2017 87 Call Sell short $0.96
May 04, 2017 SSO ProShares Ultra S&P500 Buy $86.71
View all

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Important Information

  1. Past performance is no guarantee of future results, and all investments, including those in this portfolio, involve the risk of loss, including loss of principal and a reduction in earnings.  
  2. All performance information on this page is based on the performance of the Portfolio Manager’s account, using the manager’s own funds. Portfolio Manager’s pre-IB Asset Management performance information may include performance of non-IB Asset Management client accounts. Performance of the Portfolio Manager's account is calculated by IB Asset Management on a daily time-weighted basis, including cash, dividends and earnings distributions and reflects the deduction of broker commissions. Manager returns include trades and positions that fail IB Asset Management's trading rules, as a result, actual client returns will differ. IB Asset Management advisory fees are simulated and applied retroactively to present the portfolio return "net-of-fees".
  3. None of the performance information displayed on this page is based on the actual performance of any IB Asset Management client account investing in this portfolio. The performance in an IB Asset Management client account invested in this portfolio may differ (i.e., be lower or higher) from the Portfolio Manager’s account performance based on any trading restrictions imposed by the client (resulting in different account holdings), time of initial investment, amount of investment, frequency and size of cash flows in and out of the client account, applicable brokerage commissions, and different corporate actions. Clients investing in this portfolio may view the actual performance of their investment in this portfolio by logging into their IB Asset Management account and reviewing their customized dashboard.
  4. All graph data is as of the end of day for the referenced period, unless otherwise specified. The investment minimum is the minimum investment required to follow a particular portfolio. The minimum amount is determined by IB Asset Management, based on the characteristics of the underlying portfolio. It should not be considered as specific investment advice for your investment situation.
  5. The performance charts are provided for informational purposes only, and should not be used as the basis for making an investment decision. We rely on mathematical formulas, computer programs, and pricing information from third-party vendors to provide these returns. Neither IB Asset Management nor any of its data or content providers shall be liable for any errors in this information or any actions taken by you in reliance upon this information.
  6. Benchmark returns displayed have been calculated by IB Asset Management using daily benchmark prices and do not include dividend income. More information here. For certain portfolios IB Asset Management uses an index as a benchmark, while for others it uses an investable exchange traded fund (ETF) as a benchmark. Index returns do not reflect the deduction of any management fees, transaction costs or expenses. Individuals cannot invest directly in an index. Investable ETF returns reflect the deduction of (i.e., are net of) management fees, transaction costs and expenses.
  7. All Portfolio Manager information including personal data, profiles, strategies, monthly investment reports, and historical results outside of IB Asset Management has been provided by the Portfolio Manager. IB Asset Management makes no representation or warranty of its accuracy, completeness or relevance and it does not represent the opinions of IB Asset Management. Transaction history of Portfolio Managers is available upon request. Portfolio classifications are provided by IB Asset Management, and are intended to serve as a general guide.
  8. Not all transactions listed will appear in accounts due to IB Asset Management's trading rules and individual client constraints. Eligibility of these securities is monitored periodically, and may change over time. Actual client investment holdings may vary.
  9. This portfolio was launched on IB Asset Management on November 24, 2016. Returns history prior to launch is derived from account position valuation and cash flow data at Interactive Brokers. IB Asset Management has not reviewed this performance data but has received manager certification that it adheres to the current strategy.
  10. This portfolio contains options. Options trading involves a high degree of risk, is highly speculative, and is not suitable for all investors. You should only select a portfolio with options trading if you are comfortable with the level of risk involved in trading options.
  11. The Portfolio Manager could use short selling to manage this portfolio. Short selling is more complex than simply owning securities, involves a high degree of risk, is highly speculative, and is not suitable for all investors. The risk of loss associated with short selling is virtually unlimited. Short selling may also involve additional expenses and risks, including hard-to-borrow stock charges and buy-in risk. You should only select a portfolio using short selling if you are comfortable with the level of risk involved in short selling.
  12. The Portfolio Manager could use borrowed funds or leverage to fund investments in this portfolio. Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value. Leverage involves a high degree of risk, is highly speculative, and is not suitable for all investors. Leverage increases both the amount you may lose and the amount you may make in a portfolio, leading to higher returns in the case of favorable market movements but also larger losses under adverse market conditions. You may also incur additional expenses associated with borrowing funds. You should only select a portfolio using leverage if you are comfortable with the level of risk involved in using leverage.