Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

Joe Kunkle

Trade disruptive innovation with our new CFD portfolios, in collaboration with Joe Kunkle
Joe Kunkle

5 thematic baskets individually constructed in collaboration with Options Hawk’s Joe Kunkle

Joe Kunkle baskets Price 1 Day 1 Week 1 Month  
Fintech - - - - Trade
Future of work - - - - Trade
Outdoor living - - - - Trade
Direct-to-consumer - - - - Trade
Innovators - - - - Trade

Past performance is not a reliable indicator of future results.

What are signature share baskets?

Our signature share baskets are thematic CFD portfolios of 20+ individual stocks constructed in collaboration with some of  the most prominent thought leaders in the industry.

Rebalanced quarterly

Signature share baskets are CFD portfolios created in collaboration with prominent thought leaders, utilising strategies refined from years of experience trading in the markets.

Diversify your risk

Through diversification, share baskets give you broad exposure to a theme, avoiding the risk of putting all of your eggs in one basket when trading on a single company.

Low costs

Share baskets have no commissions when placing a trade. They also benefit from reduced holding costs – the price of holding a leveraged position overnight – compared to individual equities.

Leveraged trading

Spread betting or trading CFDs on shares baskets offers up to 5:1 leverage. This means for every £1 committed, you'll have £5 of exposure in the markets. This is equivalent to a 20% margin requirement. Any profit or loss will be based on your exposure.

Low costs & commission-free

Share baskets have two fundamental costs:

1. The spread between the bid and ask price which you pay when opening a trade.
2. An overnight holding cost for holding the position. We’ve annualised the daily fees below so you can compare with other trading opportunities. You’ll also notice that you can trade either long (buy) or short (sell) on these instruments.

Instrument Spread
Annual

Overnight

Annual

Overnight
Margin rate Commission
Fintech - - - - - 20% £0
Future of work - - - - - 20% £0
Outdoor living - - - - - 20% £0
Direct-to-consumer - - - - - 20% £0
Innovators - - - - - 20% £0

Basket details

Our share baskets are constructed based on their growth potential. Are you passionate about disruptive innovation? Will the rise of direct-to-consumer businesses disrupt an outdated retail sector for generations to come?

INVESTMENT OBJECTIVE:

Tech disruption has been felt throughout the global economy, and the finance industry has not escaped. This basket aims to capitalise on emerging trends in fintech, including: digital payments, bank modernisation, real estate digitalisation, electronic trading, alternative lending, personal finance tools and digital insurance. The universe of companies exposed to these themes is then narrowed, using historical financial metrics such as ROIC, FCF, revenue and profit margins, to filter for the highest quality stocks in the space.

$135.7bn

Investment acquired by fintech firms in the last year

$4.8tn

Expected transaction value of digital payments in 2020

24

No. of fintech firms that secured unicorn status in 2019

WHAT'S INSIDE?
INVESTMENT OBJECTIVE:

A high-growth theme, accelerated by pandemic-induced isolation. The future of work umbrella captures several compelling verticals including: work-from-home, collaboration software, IT services, digital learning, and the gig economy. After screening for companies most positively impacted by these growth trends, the constituents were subsequently narrowed by overlaying a composite score across a number of fundamental metrics, where each closely correlates with the characteristics consistently found in quality, growing businesses.

$60m

2-week inflows for Direxion’s WFH ETFs

+269%

Zoom Video’s H1 share price gain

63%

Portion of global workforce more productive at home

WHAT'S INSIDE?
INVESTMENT OBJECTIVE:

The outdoor recreation market is colossal, one of the US’s largest economic sectors with $887bn in annual spending. This is nearly twice the size of the pharmaceuticals industry, and nearly equal the size of the financial services and insurance industry. In a world where outdoor leisure is only likely to grow, the segments expected to benefit from this shift in consumer behaviour include: leisure/recreation equipment, healthy living, wildlife viewing, GPS devices, sportswear & apparel, and many more besides.

$887bn

Annual US spending on outdoor recreation

$166.9bn

Americans’ annual spend on camping

+125%

Luluemon’s share price gain from mid-March lows to end June

WHAT'S INSIDE?
INVESTMENT OBJECTIVE:

The direct-to-consumer category captures several high-growth trends, including: ride hailing, food delivery, e-commerce, online education and many more besides. It’s a model that offers numerous advantages to its purveyor – think product personalisation and customer data collection – which drives higher profit margins, and in turn, demands higher valuation multiples from investors. Get exposure to best-in-class DTC companies, updated every 3 months.

$17.75bn

US DTC sales by the end of 2020

1.6m

Chewy’s new active customers – fiscal Q1

+86%

Teladoc Health’s share price gain – Q1 2020

WHAT'S INSIDE?
INVESTMENT OBJECTIVE:

A strategy that takes its foundation from Nomura managing director and head of quant strategies, Joseph Mezrich, whose Innovation Index has topped the broader market for nearly 40 years. Innovators displace industry incumbents, and ultimately go on to secure majority market share. It’s by screening for businesses that spend a disproportionately larger amount on research and development than its peers – filtering for firms with extraordinary ROIC and free cash flow – that this basket captures best-in-class innovators.

$13.6bn

Facebook’s research spend last year

+20%

Average annual return for Joseph Mezrich’s Innovation Index

$122.2bn

Combined outlay from top 10 R&D spenders in 2018

WHAT'S INSIDE?

CFD trading with CMC Markets

What are CFDs?

CFDs are derivative products that enable you to trade on the price movement of underlying financial assets, such as stocks like Apple, Tesla and Alphabet (Google).

Trade with leverage

Deposit just 3.3% of the full position. Trading returns will be magnified up/down accordingly.

Best Platform Winner

Awarded Best Platform Features and Best Mobile/Tablet App, Investment Trends 2019 UK Leverage Trading Report.

Joe Kunkle

My methodology

"The options market has consistently proved a leading indicator of future price movement in stocks. It’s my ability to combine a nose for options flow evaluation, with years of experience in fundamental analysis, which gives me a competitive advantage. I’ve used that expertise to select the themes that could drive high-growth opportunities for years to come."

Explore baskets

The opportunity

Joe Kunkle
"Some thematic growth trends are far bigger than the macro-driven economy, and can withstand a multi-quarter recession."
Joe Kunkle
Outdoor living
OUTDOOR LIVING
"The shift in consumer behaviour during the pandemic will be a significant revenue driver for outdoor recreation, a market that saw $887 billion in US spending last year."
FINTECH
"Widescale disruption in tech, which is set to continue, has incited a digital shift in the payments industry, a market set to be worth $12,407.5 billion by 2025."
Fintech
Direct to consumer
DIRECT-TO-CONSUMER
"E-commerce sales have seen potential growth this year, so that now they account for 16% of all global sales, an increase of nearly 20% from just a year ago."

Joe Kunkle

FOUNDER OF OPTIONS HAWK

Joe combines fundamental and technical analysis with tracking options flows to identify potential trading opportunities. He’s also head research analyst at Relativity Capital, and a former equity analyst at Thomson Reuters.

Specialties: equities, derivatives and risk management

Excellent track record in spotting stocks that are acquired

Featured on Bloomberg, Barron’s, WSJ & Reuters

Biography

Joe’s made a living identifying the stocks others miss, digging deep to find that next small-cap destined for ‘household-name’ status.

Having made his name in the options market, Joe tracks ‘smart money’ – the flows of institutions and global asset managers – and as a result, spots opportunities, emerging trends, and even companies, that the rest of the market misses.

Joe’s wealth of experience sees him identify those few trends that are resilient enough to stand the test of time, and his unparalleled ability to establish the true worth of a business and its growth potential, is fundamental to his success.

My methodology

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OptionsHawk company logo
"As an institutional money manager with unlimited access to sell side research and commentary, I always turn to Options Hawk first."

Jeff

The methodology

1

IDENTIFIES DISRUPTIVE TRENDS

Studies market flows

2

EVALUATES COMPANY FINANCIALS

Filters by revenue, profit, ROIC etc

3

RANKING & QUARTERLY REBALANCING

Stocks individually ranked & weighted

Watch Joe explain the methodology behind his share baskets here

Podcast

Tracking Smart Money & Discovering the Next Big Thing

PODCAST

Joe explains why evaluating options flows – the movement of institutional or ‘smart’ money – gives him his edge. It’s a process that’s seen Joe identify lesser-known small-caps that have gone on to secure major market share.

More about Joe share baskets

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