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May 2016 trading, investing, and dividends results

At first, May 2016 trading started slow and I had a very low expectation of it. Many of my trades got in the money and I had to roll them away in time. I thought I would not be able to repeat my income from the previous month. But then the trades turned all around and this month ended even better than the last one.

In April I made $938.00 in collected option premiums but this month I finished with $1,262.00 my goal on collecting min. $1,000 per month.

Now, I just need to be able to repeat this in the next month and the following ones.

May dividend income was lower as May seems to be a slow month. The dividend income was only $57.75 vs. $84.49 last month.

Options Income = $1,262.00 (account value = $2,910.54 +14.60%)
Dividend Income = $57.75 (account value = $19,398.29 +1.26%)

If you wish to see details about each account, continue reading below.


 


 
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 · May 2016 trading results

May turned out well. I made more than $1,000 dollars although I haven’t expected it at all. At the end of April and early May my account turn sour and net-liq dropped down by more than 70%! Almost all trades which were supposed to expire in May were in the money.

Fortunately, the trades recovered except one – ABBV, which I had to roll. The other trades were either closed or expired. I could open a few more trades ending in May and ended up collecting nice premiums jumping my income up.

My reason for trading options was (and always was) to create income which I can use for my other financial goals.

My plan is that I can take out $200 dollars for each $1,000 of income. This month I made it. My first $1,000 income per month.

This is my first month when I can take out my first $200 dollars out. I consider it my salary.

I will use the money to build up my reserves, pay off the debt, save more, etc.

And of course, if the next month I will not be able to make my next $1,000 then I will keep it all in the account, reinvest, and go on.

However, as of now, I have enough open trades that I am literally sitting on $5,000 dollars of collected premiums! Yes, so far, I collected $5,000 dollars in premiums, but I cannot take them because the trades are still alive and I have to wait for those trades to end first or expire.

Well, let’s see how many of those trades I will be able to end in the next month. It is because I have so many trades opened now that I cannot open new trades. I have to wait for those old trades to end first. If they do not end I will have to roll them then I will not be able to open new trades and I may not be able to make new money.

If you want to see and follow those trades, new trades we open you can join our Facebook group where traders like me post a trade at the time of opening it, tracking it, rolling it if needed, and closing it. Then you can see what we trade and eventually mirror it.

 

Here is my trading result for the month:

 

May 2016 options trading income: $1,262.00 (49.69%)
2016 portfolio Net-Liq: $2,910.54 (-4.24%)
2016 portfolio Cash Value: $4,800.04 (1017.09%)
2016 overall trading account result: 14.60%

 

Here are the results of my options trading:

Options Income
(Click to enlarge)

 
Here is my monthly income from options trading:
 

TD Account Value

 
Here are the results of my options strategy:

 

The table above shows a good strike of winning trades. I hope will be able to continue my trading this way.

My average trade holding time is currently 16 days, average P/L 2.42% and 88.15% annualized return.

 
Here are results of the individual trades:

 

ESV

Options Income
(Click to enlarge)

 
ABBV

Options Income
(Click to enlarge)

 
LULU

Options Income
(Click to enlarge)

 
TRGP

Options Income
(Click to enlarge)

 
PSX

Options Income
(Click to enlarge)

 
STX

Options Income
(Click to enlarge)
 

If you like these trades and want to be informed when I place them and trade them in real time, you can join our closed Facebook Group. The group is a closed group and there are other traders posting their trade ideas too. We learn from each other, eventually ask questions, get answers, but most importantly you can see what we trade and how. You can follow those trades.

 
Here is the entire account value from the beginning of tracking it up to today:

TD Account Value
 

 

 


 
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 · May 2016 dividend investing results

My dividend account is slowly growing in value and my dividend income grew too. I like seeing my stocks growing slowly and without my effort using DRIP reinvesting.

Although my dividend income is still small I can see it growing. I just looked at my dividend income of each individual stock. It is nice to see every income being slightly larger than the previous one. And that little larger income bought more shares. And more shares paid more dividends. An incredible look!

But because my account is still small I decided to adopt other strategies to boost income in this account.

My plan in a ROTH account is also to trade options, but primarily investing into dividend growth stocks. Last month I decided to create three sub-accounts (created just in my spreadsheet) with a certain purpose:

1) In 2016 I want to save $1,000 for great opportunity. Time to time a stock with a great opportunity shows up. A sudden fall in price or selloff can happen. Then, I do not have cash to buy such stock. This fund would serve this purpose to have cash to buy.

2) My next “virtual account” is dedicated to options trading. In 2016 I planned to save $2,000 dollars and use them for options trading. This month I was able to save $2,000 and have it fully invested in options to generate cash. All income from options is now being relocated to my “Great opportunity virtual account”.

3) Once my “Great opportunity virtual account” will be funded I will be relocating all income into my next virtual account – stock purchasing account. Once I save at least $1,000 in this account, I will buy shares of a stock in my buy list.

Well, little game of mine.

But, it helps me to stay on track.

Here is a picture of my spreadsheet showing my “virtual accounts”:
 

Options Income
(Click to enlarge)
 

Here is my ROTH account review:
 

Options Income
(Click to enlarge)
 

My annual dividend income this month is up from $897.17 to $918.74.

 
Dividend stocks added or removed from portfolio:

 

April 2016 dividend stock buys: none
April 2016 dividend stock sells: none

 

To purchase stocks I use trailing stock order strategy OTO trade order (one triggers other) and I described this strategy in my post about purchasing stocks in falling markets.

I also invest into dividend paying stocks using Motif investing which allows me to buy all 30 stocks I want in one purchase using fractional investing, similar to a mutual fund.

You can actually build your own mutual fund with Motif investing.

Here is my Motif Investing account you can review:
 
 

 

 
 

I continue reinvesting my dividends using DRIP program. I love how my holdings grow when reinvesting the dividends and when the stock prices are going lower. As I believe we are heading into a recession I will be able buying more shares for a lot cheaper.

 

Dividend stocks DRIP:

 

May 2016 DRIP:

American Capital Agency Corp. (AGNC)
MasterCard Incorporated (MA)
Realty Income Corporation (O)
Kinder Morgan, Inc. (KMI)
Prospect Capital Corporation (PSEC)

 

Here are my ROTH IRA trading/investing results:

 

May 2016 dividend income: $57.75
May 2016 options income: $0.00
2016 portfolio value: $19,398.98 (1.26%)
2016 overall dividend account result: 28.13%

 

The account grew by 1.26% from last month, overall I am up 28.13%. The dividend income was down from last month. All dividends were reinvested back to the companies which generated them.

 
Here is my dividend income:

ROTH IRA account value
 

 
Annual dividends since the beginning:

ROTH IRA account value
 

Here is the entire account value from the beginning of tracking it up to today:

ROTH IRA account value

 

 


 
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Below is my dividend income review for the entire year:

Dividend Income
My ROTH IRA dividend income breakdown per month and per company.
 
 

 · All accounts

Besides trading and dividend accounts I also have 401k account, emergency savings account, etc., which I do not report in detail. You can review those accounts in my “All Accounts Value” table at the bottom of My Trades & Income page.

My accounts increased from previous month and are making 17.32% (up 0.67% from previous month) for the year.

Remember, if you like trading options and want to have trade ideas for free, join my Facebook closed group and follow my put selling trade ideas in real time, comment, ask questions, and interact with other members. Other members of the group can also post their trades so you can learn from them too.

 
 

You can join the options trading group here

 
 

What do you think?

How about your investing or trading results?

Do you have any question? Need help to start trading or investing? Shoot me an email or let me know below in comments how I can help you.

 
 





6 responses to “May 2016 trading, investing, and dividends results”

  1. Congrats on a fantastic options month. If you’re able to average $1k a month in premiums, the fuel you’ll be able to add to your portfolio will be fantastic. Keep it up.

  2. DivHut says:

    Congrats on cracking over $1k for your options trades. You sure have been busy and it’s quite impressive that you have already collected $5k in premiums, though not all trades are settled yet. What do you mean when you roll over an options trade? I noticed you mentioned that on trades that have not gone your way. Thanks for sharing your results. Always interesting to watch as I’m on the options sidelines still.

    • Martin says:

      Hi Keith,

      When the trade goes against me, I roll it. Rolling means I buy back the bad option and sell a new one with longer expiration (roll away) and better strike (roll down puts or roll up calls). When rolling you always want the new option contract to pay for your old contract, so you get more credit, never pay debit. For example, if a trade goes against me, I buy the old contract for 1.60 and try to sell a new contract for 2.0, so I collect 0.40 new credit, move it away in time and down in strike.

      Thanks for stopping by!

  3. amber tree says:

    Vet ice options trading result! Reaching 1K is a nice milestone to cross!

    Keep trading!

    • Martin says:

      Yes, this was totally unexpected at first as at the beginning of the month it looked like I would make nothing. Turned out great.

      Thanks for stopping by!

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