WHAT WE DO? WE SELL OPTIONS FOR INCOME. WE USE THAT INCOME TO BUY DIVIDEND GROWTH STOCKS!
CHECK OUR TRADES ON OUR MeWe PAGE!


2021 Week 5 results

The first week of February was slow in trading. I didn’t have much time to trade and thus it was mostly maintaining the existing trades. However, some of our holdings (those speculative ones) jumped up significantly and boosted our net liquidating value beyond my expectations. I think I sorted out better, what I want to do next with our fund.

I still will be accumulating dividend aristocrats according to our plan but I will be also adding some of the innovative and disruptive stocks from industries such as renewable energy, biochemical industry, electric vehicles, 5G research and innovations, 3D printing, and cannabis. But I will also do some speculative trading on a small scale using momentum trading.

I created a Finviz screener that searches for stocks with unusual volume activity (plus some other technical indicators) that helps me to find stocks that may spike up significantly on a new buying interest. I will buy such stock (and if a stock is optionable and offers good premiums and strikes to trade, I will also sell puts against the stock) and ride the momentum. I will also use stop loss to protect the trade from losses.

Currently, the screener selected the following tickers: NESR and CSWC. We purchased a few shares of NESR and we bought a call option on CSWC that we could offset by selling a naked put against it. Both trades are profitable so far.

For the next week our screener chose the following symbols that we may (or may not) trade next week: CUTR, NOG, PRCH, NBLX, FLNT, and REKR. Some stocks are on our watch list already, such as CUTR, others we need to wait for a breakout to invest. Lets see what the next week brings.

Last week, we continued accumulating our dividend aristocrats Altria (MO) and saving cash in the ICSH fund to have our savings up to date in case of a serious market correction. We increased our MO holdings to 45 shares and our goal is to reach 100 shares. After we reach the goal, our next accumulation goal will be Aflac (AFL).

In our “innovative and disruptive” category, we will be accumulating RESN, this company develops 5G network components and radio/cell phone filters and some other stuff; I expect this company to be a significant player once the US wireless carriers kick in their 5G networks in 2022; DDD, and XONE, both companies are involved in 3D printing and they have a good potential of large returns in the next 3 years; PACB in biochemical industry, developing genetic sequencing systems; and ISR a company researching cancer treatments, technologies and medical equipment.
 

We are also interested in the following stocks:
 

Virgin Galactic Holdings, Inc. (SPCE)
Social Capital Hedosophia Holdings Corp. V (IPOE)
Canadian Solar Inc. (CSIQ)
Plug Power Inc. (PLUG)
First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN)
iShares Self-Driving EV and Tech ETF (IDRV)
The AES Corporation (AES)
Omnicom Group Inc. (OMC)
 

It will take us some time before we will be able to accumulate these stocks as our cash is limited. That is also one reason for aggressive options trading to generate enough cash that can be used to buy these stocks of our interest.

We post our trades and more details in our MeWe group. I strongly recommend you to join the group if you are interested in following our trades more in detail. We also post trades on a MeWe page as I do not like Facebook anymore and I participate on Facebook very sporadically.

 

But now, let’s jump to our trading results:

 

Account Value: $30,468.65 $5,190.52 +20.53%
Options Premiums Received: $467.00
January 2021 Options: $4,209.00 +16.65%
February 2021 Options: $467.00 +1.53%
Options Premiums YTD: $4,676.00 +15.35%
Dividends Received: $36.79
January 2021 Dividends: $53.04
February 2021 Dividends: $36.79
Dividends YTD: $89.83
Portfolio Yield: 3.57%
Portfolio Dividend Growth: 5.91%
Portfolio Alpha: 8.88%
Portfolio Weighted Beta: 0.60
2021 Portfolio Value Goal: $42,344.06 71.95%

 

Last week we received $467.00 in premiums trading options against our holdings and shares we want to own. Our options trading delivered a 1.53% monthly ROI, totaling a 15.35% ROI. Also, our net-liq increased significantly as the volatility dropped after the GME frenzy saga faded away and the stock market recovered all last week’s losses.

With this recovery, our account jumped up to 48.10% YTD growth. We are very happy with this result.

Last week we had to sell some shares in ICSH, VGSH, GBIL, and MO to release some buying power (BP) as we were getting hit by margin calls. This week, we bought all these shares back and added more. I see this as a good achievement as well.
 

TW Account Net-Liq
 

TW Account holdings
 

The table above shows our current holdings and gains on those holdings. Adjusted columns indicate how options help to boost (or ruin) our stock holdings appreciation, or in other words, lowering the cost basis. Without options, our holdings would be up 7.32% with options, our holdings are up 12.06% (from inception on 4/1/2019). The SPX is up 34.36% since inception. Our stock holdings do not beat the market. We beat the market because of trading options and generating additional income. The market gained 4.52% YTD, our portfolio stock holdings grew by 5.08% (note this includes stock holdings adjusted by options trading, not the entire portfolio).
 

TW Account holdings Growth YTD
 

TW Options Income week 5
 

TW Options Annual Income week 5
 

TW Received vs Projected Dividends week 5
 

We are still in an accumulation mode accumulating Altria (MO). Our next target will be accumulating Aflac (AFL), and Abbvie (ABBV). After that I will proceed to other stocks as per the chart I posted in my previous article.
 

We also want to expose our portfolio to some growth stocks in the new technologies and industries such as electric vehicles, nanotechnologies, fintech industry, cannabis, and renewable and clean energy. I will be purchasing individual stocks as well as ETFs investing in these industries. That’s why you may see me buying stocks like NIO, NNDM, SNOW, CUTR, CSIQ, ISR, DDD, XONE, IPOE, PACB, SPCE, RESN, or ETFs such as MSOS, RNRG, or IDRV.





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