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Posted by Martin October 23, 2022
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2022 Week 42 investing and trading report


I traded very little last week. Instead, I was accumulating shares of stocks I want to own, such as Microsoft (MSFT), Amazon (AMZN, right now, when we are seeing CFAs and other people predicting Amazon to go bankrupt, again, it is time to accumulate this stock), Main (MAIN), and others.
 

Our NetLiq-cash-buying power ratio is improving, allowing us to accumulate more shares:

 
Cash - Net-Liq - BP 42
 

Our trading delivered +$258.00 premiums last week ending October 2022 at +$2,646.00 (+4.66%) options income. Our net-liq value increased by +1.78% to $56,812.43 value. That is still a terrible result. Our overall account is now down -45.71% YTD.
 

Here is our investing and trading report:

 

Account Value: $56,812.43 +$1,008.77 +1.78%
Options trading results
Options Premiums Received: +$258.00    
01 January 2022 Options: +$8,885.00 +8.36%  
02 February 2022 Options: +$10,009.00 +10.34%  
03 March 2022 Options: -$1,662.00 -1.47%  
04 April 2022 Options: +$1,047.00 +1.19%  
05 May 2022 Options: +$8,604.00 +11.32%  
06 June 2022 Options: +$9,691.00 +13.73%  
07 July 2022 Options: +$8,717.00 +11.39%  
08 August 2022 Options: +$7,987.00 +12.15%  
09 September 2022 Options: +$2,997.00 +5.76%  
10 October 2022 Options: +$2,646.00 +0.10%  
Options Premiums YTD: $58,921.00 +103.71%  
Dividend income results
Dividends Received: $24.85    
01 January 2022 Dividends: $303.38    
02 February 2022 Dividends: $732.81    
03 March 2022 Dividends: $393.74    
04 April 2022 Dividends: $337.31    
05 May 2022 Dividends: $343.99    
06 June 2022 Dividends: $445.80    
07 July 2022 Dividends: $367.66    
08 August 2022 Dividends: $683.58    
09 September 2022 Dividends: $555.20    
10 October 2022 Dividends: $272.23    
Dividends YTD: $4,435.70    
Portfolio Equity
Portfolio Equity: $179,600.69 +$22,566.63 +14.37%
Portfolio metrics
Portfolio Yield: 5.89%    
Portfolio Dividend Growth: 15.73%    
Ann. Div Income & YOC in 10 yrs: $152,886.69 75.62%  
Ann. Div Income & YOC in 20 yrs: $43,031,076.49 21,284.70%  
Ann. Div Income & YOC in 25 yrs: $8,345,112,216.73 4,127,788.23%  
Ann. Div Income & YOC in 30 yrs: $19,066,931,150,501.10 9,431,179,817.48%  
Portfolio Alpha: 98.67%    
Sharpe Ratio: 11.58 EXCELLENT  
Portfolio Weighted Beta: 0.44    
CAGR: 266.57%    
AROC: 66.01%    
TROC: 4.48%    
Our 2022 Goal
2022 Dividend Goal: $4,800.00 92.41% In Progress
2022 Portfolio Value Goal: $151,638.03 37.47% In Progress
6-year Portfolio Value Goal: $175,000.00 32.46% In Progress
10-year Portfolio Value Goal: $1,000,000.00 5.68% In Progress

 

Dividend Investing and Trading Report

 
Last week we have received $24.85 in dividends bringing our October’s dividend income at $272.23.


Last week, we bought these dividend growth stocks:

 
– 24 shares of MSFT @ $236.98
 
I will be accumulating MSFT shares until I reach 100 shares. As of today, I own 30 shares.

 
– 17 shares of OHI @ $30.86
 
I decided to add more shares of OHI to increase the holdings to 200 shares, so I could start selling another covered call. As of today, I own 180 shares.

 
– 5 shares of GPN @ $113.32
 
GPN was on my radar for some time, so I added a first small position in this company, and I plan to increase it to 100 shares as soon as possible. As of today, I own five shares.

 
– 10 shares of MAIN @ $34.82
 
MAIN is another stock that proved to be a good one. I have followed it since 2009 but never pushed the button to buy it. It is a BDC company paying good dividends and not cutting them. So I decided to open my first position, accumulating this stock to reach 100 shares.

 
Here is a chart of our account equity showing our accumulation goal and the value of all stocks in our account. It shows a nice upward-sloping chart as our equities grow. This is a result of our options trading and using premiums to buy dividend stocks:

 
Account Equity week 42
 

And here you can see the dividend income those equities pay us every year:

 
Annual Dividend Payout week 42

 

Growth stocks Investing and Trading Report

 


Last week, we bought the following growth stocks and funds:
 

  • 30 shares of TMUS @ $135.19
     
    I finished my goal of accumulating TMUS. I reached 100 shares, and I started selling covered calls.

 
– 10 shares of SPXL @ $59.94
 
I believe it is a very good time to accumulate SPXL. This stock will skyrocket when the market reverses and starts going up again.

 
– 2 shares of TSLA @ $206.00
 
Tesla is in a buy zone, in my opinion. So, I added a small position and planned to accumulate more shares. I wrote my analysis about TSLA in my weekly newsletter.

 
– 10 shares of AMZN @ $117.06
 
I started seeing people on social media saying that Amazon is worthless and possibly going bankrupt. This was a reminiscence of 2014 when people said the same thing when Amazon traded at $360 a share. Fast forward to today, and the stock was at $3,000 a share (pre-split price). So, when people say this, it is time to accumulate the stock.
 

Options Investing and Trading Report

 

Last week options trading delivered a gain of +$258.00 making our October options income +$2,646.00.

 

We were actively trading our SPX strategy that delivered $367.00 gain.


 

Expected Future Dividend Income

 
We received $24.85 in dividends last week. Our portfolio currently yields 5.89% at $56,812.43 market value.

 
Our projected annual dividend income in 10 years is $152,886.69, but that projection is if we do absolutely nothing and let our positions grow without adding new positions or reinvesting the dividends.

We are also set to receive a $6,834.63 annual dividend income ($569.55 monthly income). We are 4.47% of our 10 year goal of $152,886.69 dividend income.

 
Future Divi on YOC week 42
 

The chart above shows how our future dividend income is based on the future yield on cost and what dividend income we may expect. The expected dividend growth depends on what stocks we add to our portfolio and the stocks’ 3 years average dividend growth rate. It is interesting to see what passive income we may enjoy 10, 20, 25, or 30 years from now.

 

Market value of our holdings

 
Our non-adjusted stock holdings market value increased from $157,034.06 to $179,600.69 last week.

In 2022 we plan on accumulating dividend stocks, monetizing these positions, HFEA strategy, and SPX trading. We plan to raise more of our holdings to 100 shares to sell covered calls. We continued rebalancing our options trades that released buying power significantly. That allowed us to start repurchasing shares of our interest.

 
Stock holdings trading week 42
 

We aim to accumulate 100 shares of dividend growth stocks we like and then start selling covered calls or strangles around those positions. We also planned on reinvesting all dividends back into those holdings.
 

Investing and trading ROI

 

Our options trading delivered a +4.66% monthly ROI in October 2022, totaling a 103.71% ROI YTD. If our options income stays at this level by the end of the year, we will exceed our 45% annual revenue goal in selling options against dividend stocks.

Our entire account is still down -45.71%.
 

Our options trading averaged $5,892.10 per month this year. If this trend continues, we will make $70,705.20 trading options in 2022. As of today, we have made $58,921.00 trading options.
 

Old SPX trades repair

 

We traded our SPX put credit spread strategy which you will be able to review in my next report. The SPX strategy has held well so far, and our signals kept us from opening new aggressive trades.

 

Investing and trading report in charts

 

Account Net-Liq

 

TW Account trading Net-Liq week 42

This drawdown of our account is extremely discouraging. It’s like all previous gains were all wiped out. But this is just a temporary drawdown. I am not selling any stock positions despite the losses. I will keep buying more shares if possible. I also have losses in my options trades. I am rolling those trades to keep them alive and adjusting them slowly, one by one, until they expire as winners. Then, this terribly-looking chart improves. It will be a long process to get back up, but I am determined.
 

Account Stocks holding

 
TW Account holdings week 42
 

Last week, S&P 500 grew 29.73% since we opened our portfolio while our portfolio grew 7.93%. On YTD basis, the S&P 500 fell -35.03% and our portfolio -21.85%. We are outperforming the market.

The numbers above apply to our stock holdings only. Our overall account net-liq is down by -45.71% this year.
 

Stock holdings Growth YTD

 
TW Account holdings Growth YTD
 

Our stock holdings are starting to outperform the market. Hopefully, this trend will stay, and we will constantly do better than S&P 500.
 

Our 10-year goal is to grow this account to $1,000,000.00 value in ten years. We are in year two and we accomplished 5.68% of that goal.
 

Our 6-year goal is to reach $175,000 account value to be eligible for portfolio margin (PM) and today we accomplished 32.46% of that goal.
 

Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 37.47% of this goal.

I am afraid our account is no longer on track to accomplish our 2022 year goal. We may accomplish our dividend and options income goals, but our account balance (Net-Liq) will be down significantly. Of course, if the market finally rallies by the end of the year, it may all change, but if not, we will fail.

 

Investing and Trading Report – Options Monthly Income

 
TW Options Trading Income week 42
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Trading Income week 42
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 42
 

We plan to make $4,800.00 in dividend income in 2022. As of today, we received $4,435.70. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $6,834.63 a year. Our monthly projected dividend income is $569.55, and our current monthly dividend income is $369.64.
 

TW Received vs Future Dividends week 42

 

I have a favor to ask. If you like this report, please, hit the like like button button so I know that there is enough audience that like this content. Also, if there is something you want to know or you want me to change this report to a different format, let me know in the comments section.

 
 




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Posted by Martin October 23, 2022
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2022 SPX put credit spreads trading review – week 42


Last week we opened only two SPX trades and one adjustment. All trades finished for a nice profit. If the market continues higher for the year-end, we may have more successful trades.
 

Our trades delivered a $367.00 gain. Our account weekly trading is up by 0.99% while SPX gained 4.74%.
 

Our SPX account is up +938.08% since the beginning of this program, and we have $41,492 in unrealized gains.

 

Initial SPX trade set ups

 

I dedicated a $3,600 initial amount that will be used to trade SPX PCS strategy per week. Today, the account is up at $37,370.95. However, due to the recent bear market, many trades are still tight to open trades which need to expire to release the funds.
 

Our SPX strategy is designed as directional options trading. We are selling credit put spreads to collect premiums, and hopefully, these spreads expire worthlessly, or we repurchase them for a small debit.

We use a set of indicators (primarily based on moving averages and volume profiles) and market sentiment that generates bullish signals. The trading is based on a “trend-following strategy.” We open the trade if we have a bullish signal and a bullish trend. If we do not have a signal, we stay away. We also trade credit call spreads when we have bearish signals. In a choppy market, we stay away from or trade very short expirations (usually 1 or 2 days or up to 7 days), but the trading is muted as we need a trending market. Unfortunately, today, we do not have a trending market (yes, overall, it is a down-trending market, but for short-term trades, it is choppy and not trending).
 

Here you can see all our trades:

 
SPX PCS account value
Click on the picture above to see the entire list.
 

Last week trading

 

Overall, the strategy resulted in a +938.08% gain last week.
 

Initial account value (since inception: 12/07/2021): $3,600.00
Last week beginning value: $37,003.95
Last week ending value: $37,003.95 (0.99%; total: +938.08%)
The highest capital requirements to trade this strategy: $19,995
Current capital at risk: -$11,492
Unrealized Gain: $41,492 (-361.05%)
Realized Gain: -$7,565 (65.83%)
Total Gain: $33,927 (-295.22%)
Win Ratio: 56%
Average Winner: $308
Average Loser: $509

 

SPX PCS account value
SPX PCS account value
 

SPX PCS account vs SPX
SPX PCS account vs SPX index net liq
 

SPX PCS account vs SPX
SPX PCS account vs SPX index
 

If you want to receive trade alerts whenever we open a new SPX put credit spread or a hedge trade, you can subscribe to our service:

 

 

Note, if you wish to subscribe to multiple levels, you can do so by subscribing to one level only and then sending us an email that you want to be added to other levels too.

Also, if you like this report, hit the like button so I know there is enough audience wanting to see this type of report. If you have any questions or want to see anything else about my SPX trading, do not hesitate to contact me or write a comment in the comments section. Thank you!

 
 




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Posted by Martin October 22, 2022
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10.21.22 – FRIDAY MARKET OUTLOOK


Market Outlook Thursday
 

Today, the market was definitely bullish. After an initial rally and pullback, it continued up the entire day. But the VIX is still negative showing that investors do not trust this rally and keep buying hedges. They expect this rally to fail again. But it may be tricky. They may get squeezed and we may see a short covering rally. Today, the market could have been a short covering before the weekend, though. Next week will show more. We are however seeing the market creating a base – a good sign for the near future. If we see a rally confirmation next week, I would expect a rally continuation.

 
Market Outlook Friday
 

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Posted by Martin October 21, 2022
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10.20.22 – THURSDAY MARKET OUTLOOK


Market Outlook Thursday
 

The VIX structure is still in deep backwardation and the market is selling off. Nothing dramatic, but sliding. And there is no improvement. Not even the earnings season which is surprisingly good (the earnings armageddon is not happening) is not able to save the markets. Expect more selling until the VIX improves. However, the markets may reverse suddenly and the VIX may be lagging so we need to evaluate any rally carefully.

 
Market Outlook Thursday
 

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Posted by Martin October 20, 2022
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10.19.22 – WEDNESDAY MARKET OUTLOOK


Market Outlook Wednesday
 

On Wednesday, the markets started showing weakness and that was confirmed by the VIX futures as they were still in backwardation. Remember, the first two months of the structure of the future are what matters the most, and the first two months are clearly heading down. This indicates traders (big money) buying protection, hedging their portfolios in expectations of further declines. The markets erased almost all yesterday’s gains and I expect this trend to continue (lower).

 
Market Outlook Wednesday
 

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Posted by Martin October 19, 2022
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10.18.22 – TUESDAY MARKET OUTLOOK


Market Outlook Tuesday
 

On Tuesday, the market opened higher but for the entire morning, it was drifting lower. It almost closed the entire opening gap. After that, it traded slightly higher and sideways. The VIX futures term deepened its backwardation indicating that this rally has no legs. Today’s weakness in the price action is confirmed by the VIX which is worse than it was yesterday. Unless the VIX changes (bears get squeezed), I expect selling to resume soon.

 
Market Outlook Tuesday
 

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Posted by Martin October 18, 2022
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10.17.22 – MONDAY MARKET OUTLOOK


Market Outlook Monday
 

The stock market skyrocketed on Monday again. It gained 2.63% but as you can see in the above VIX structure, the market participants remain bearish and the VIX is still in backwardation. I suspect that today’s rally will fail again unless we see continuation and change in the VIX. Until then, expect this rally to be sold off.

 
Market Outlook Monday
 

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Posted by Martin October 15, 2022
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2022 Week 41 investing and trading report


Another volatile bearish market week is behind us, and we did well trading and investing our funds. It is not an easy market, though. I struggle to maintain buying power, which sometimes forces me to sell my stocks and then buy them back on a later day. Even in this market, I keep accumulating stocks as much as possible. I keep buying dividend stocks, and after I reach 100 shares, I start selling options against those positions.
 

My NetLiq-cash-buying power ratio is still in reverse. I have more cash that I can use to trade. That is insane. But as long as I am afloat and even can be buying more shares, I am OK with it:

 
Cash - Net-Liq - BP 41
 

Our trading delivered +$2,334.00 premiums last week ending October 2022 at +$2,388.00 (+4.28%) options income. Our net-liq value increased by +2.56% to $55,803.66 value. That is still a terrible result. Our overall account is now down -46.67% YTD.
 

Here is our investing and trading report:

 

Account Value: $55,803.66 +$1,431.25 +2.56%
Options trading results
Options Premiums Received: +$2,334.00    
01 January 2022 Options: +$8,885.00 +8.36%  
02 February 2022 Options: +$10,009.00 +10.34%  
03 March 2022 Options: -$1,662.00 -1.47%  
04 April 2022 Options: +$1,047.00 +1.19%  
05 May 2022 Options: +$8,604.00 +11.32%  
06 June 2022 Options: +$9,691.00 +13.73%  
07 July 2022 Options: +$8,717.00 +11.39%  
08 August 2022 Options: +$7,987.00 +12.15%  
09 September 2022 Options: +$2,997.00 +5.76%  
10 October 2022 Options: +$2,388.00 +0.10%  
Options Premiums YTD: $58,663.00 +105.12%  
Dividend income results
Dividends Received: $181.28    
01 January 2022 Dividends: $303.38    
02 February 2022 Dividends: $732.81    
03 March 2022 Dividends: $393.74    
04 April 2022 Dividends: $337.31    
05 May 2022 Dividends: $343.99    
06 June 2022 Dividends: $445.80    
07 July 2022 Dividends: $367.66    
08 August 2022 Dividends: $683.58    
09 September 2022 Dividends: $555.20    
10 October 2022 Dividends: $247.38    
Dividends YTD: $4,410.85    
Portfolio Equity
Portfolio Equity: $157,034.06 +$1,435.69 +0.92%
Portfolio metrics
Portfolio Yield: 6.22%    
Portfolio Dividend Growth: 11.61%    
Ann. Div Income & YOC in 10 yrs: $90,640.81 48.03%  
Ann. Div Income & YOC in 20 yrs: $4,286,272.47 2,271.45%  
Ann. Div Income & YOC in 25 yrs: $106,069,380.22 56,209.92%  
Ann. Div Income & YOC in 30 yrs: $9,775,796,121.06 5,180,540.31%  
Portfolio Alpha: 99.69%    
Sharpe Ratio: 33.73 EXCELLENT  
Portfolio Weighted Beta: 0.49    
CAGR: 267.67%    
AROC: 68.02%    
TROC: 3.34%    
Our 2022 Goal
2022 Dividend Goal: $4,800.00 91.89% In Progress
2022 Portfolio Value Goal: $151,638.03 36.80% In Progress
6-year Portfolio Value Goal: $175,000.00 31.89% In Progress
10-year Portfolio Value Goal: $1,000,000.00 5.58% In Progress

 

Dividend Investing and Trading Report

 
Last week we have received $181.28 in dividends bringing our October’s dividend income at $247.38.

Last week, we did not purchase any dividend stock.


 

Here is a chart of our account equity showing our accumulation goal and the value of all stocks in our account. It shows a nice upward-sloping chart as our equities grow. This is a result of our options trading and using premiums to buy dividend stocks:

 
Account Equity week 41
 

And here you can see the dividend income those equities pay us every year:

 
Annual Dividend Payout week 41

 

Growth stocks Investing and Trading Report

 


Last week, we bought the following growth stocks and funds:
 

  • 5 shares of TMUS @ $137.85
     
    I keep accumulating shares of TMUS until I reach 100 shares. Then, I will start selling covered calls. As of today, I own 70 shares of this company. I like TMUS because it holds value despite our bear market. People will use phones, telecommunication, and internet services even during the recession so that TMUS will prosper. And I believe it is trading at a great value compared to its future value. It may be overvalued compared to today’s fundamentals, but not towards future fundamentals. I provide an analysis of this stock in my weekly newsletter, so if you are interested, subscribe to the newsletter and read my analysis of the market and some individual stocks.

 

Options Investing and Trading Report

 

Last week options trading delivered a gain of +$2,334.00 making our October options income +$2,388.00.

 

We were actively trading our SPX strategy that delivered $265.00 gain.


 

Expected Future Dividend Income

 
We received $181.28 in dividends last week. Our portfolio currently yields 6.22% at $55,803.66 market value.

 
Our projected annual dividend income in 10 years is $90,640.81, but that projection is if we do absolutely nothing and let our positions grow without adding new positions or reinvesting the dividends.

We are also set to receive a $6,691.50 annual dividend income ($557.62 monthly income). We are 7.38% of our 10 year goal of $90,640.81 dividend income.

 
Future Divi on YOC week 41
 

The chart above shows how our future dividend income is based on the future yield on cost and what dividend income we may expect. The expected dividend growth depends on what stocks we add to our portfolio and the stocks’ 3 years average dividend growth rate. It is interesting to see what passive income we may enjoy 10, 20, 25, or 30 years from now.

 

Market value of our holdings

 
Our non-adjusted stock holdings market value increased from $155,598.37 to $157,034.06 last week.

In 2022 we plan on accumulating dividend stocks, monetizing these positions, HFEA strategy, and SPX trading. We plan to raise more of our holdings to 100 shares to sell covered calls. We continued rebalancing our options trades that released buying power significantly. That allowed us to start repurchasing shares of our interest.

 
Stock holdings trading week 41
 

We aim to accumulate 100 shares of dividend growth stocks we like and then start selling covered calls or strangles around those positions. We also planned on reinvesting all dividends back into those holdings.
 

Investing and trading ROI

 

Our options trading delivered a +4.28% monthly ROI in October 2022, totaling a 105.12% ROI YTD. If our options income stays at this level by the end of the year, we will exceed our 45% annual revenue goal in selling options against dividend stocks.

Our entire account is still down -46.67%.
 

Our options trading averaged $5,866.30 per month this year. If this trend continues, we will make $70,395.60 trading options in 2022. As of today, we have made $58,663.00 trading options.
 

Old SPX trades repair

 

We traded our SPX put credit spread strategy which you will be able to review in my next report. The SPX strategy has held well so far, and our signals kept us from opening new aggressive trades.

 

Investing and trading report in charts

 

Account Net-Liq

 

TW Account trading Net-Liq week 40

This drawdown of our account is extremely discouraging. It’s like all previous gains were all wiped out. But this is just a temporary drawdown. I am not selling any stock positions despite the losses. I will keep buying more shares if possible. I also have losses in my options trades. I am rolling those trades to keep them alive and adjusting them slowly, one by one, until they expire as winners. Then, this terribly-looking chart improves. It will be a long process to get back up, but I am determined.
 

Account Stocks holding

 
TW Account holdings week 41
 

Last week, S&P 500 grew 23.86% since we opened our portfolio while our portfolio grew 2.21%. On YTD basis, the S&P 500 fell -40.90% and our portfolio -27.57%. We are outperforming the market.

The numbers above apply to our stock holdings only. Our overall account net-liq is down by -46.67% this year.
 

Stock holdings Growth YTD

 
TW Account holdings Growth YTD
 

Our stock holdings are starting to outperform the market. Hopefully, this trend will stay, and we will constantly do better than S&P 500.
 

Our 10-year goal is to grow this account to $1,000,000.00 value in ten years. We are in year two and we accomplished 5.58% of that goal.
 

Our 6-year goal is to reach $175,000 account value to be eligible for portfolio margin (PM) and today we accomplished 31.89% of that goal.
 

Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 36.80% of this goal.

I am afraid our account is no longer on track to accomplish our 2022 year goal. We may accomplish our dividend and options income goals, but our account balance (Net-Liq) will be down significantly. Of course, if the market finally rallies by the end of the year, it may all change, but if not, we will fail.

 

Investing and Trading Report – Options Monthly Income

 
TW Options Trading Income week 41
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Trading Income week 41
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 41
 

We plan to make $4,800.00 in dividend income in 2022. As of today, we received $4,410.85. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $6,691.50 a year. Our monthly projected dividend income is $557.62, and our current monthly dividend income is $367.57.
 

TW Received vs Future Dividends week 41

 

I have a favor to ask. If you like this report, please, hit the like like button button so I know that there is enough audience that like this content. Also, if there is something you want to know or you want me to change this report to a different format, let me know in the comments section.

 
 




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Posted by Martin October 15, 2022
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2022 SPX put credit spreads trading review – week 41


We traded only two SPX trades last week and one SPY butterfly adjustment. That trade may end busted. Maybe, next week I will try to adjust that trade again to squeeze some credit from it, but as of today, the trade might be just a bust. I wanted to adjust that trade to a credit spread, but then the market reversed and started selling hard at the end of the week. I am glad I didn’t touch that trade, as the protection I put in may still be needed.
 

Our trades delivered a $265.00 gain. Our account weekly trading is up by 0.72% while SPX lost -1.55%.
 

Our SPX account is up +927.89% since the beginning of this program, and we have $41,215 in unrealized gains.

 

Initial SPX trade set ups

 

I dedicated a $3,600 initial amount that will be used to trade SPX PCS strategy per week. Today, the account is up at $37,003.95. However, due to the recent bear market, many trades are still tight to open trades which need to expire to release the funds.
 

Our SPX strategy is designed as directional options trading. We are selling credit put spreads to collect premiums, and hopefully, these spreads expire worthlessly, or we repurchase them for a small debit.

We use a set of indicators (primarily based on moving averages and volume profiles) and market sentiment that generates bullish signals. The trading is based on a “trend-following strategy.” We open the trade if we have a bullish signal and a bullish trend. If we do not have a signal, we stay away. We also trade credit call spreads when we have bearish signals. In a choppy market, we stay away from or trade very short expirations (usually 1 or 2 days or up to 7 days), but the trading is muted as we need a trending market. Unfortunately, today, we do not have a trending market (yes, overall, it is a down-trending market, but for short-term trades, it is choppy and not trending).
 

Here you can see all our trades:

 
SPX PCS account value
Click on the picture above to see the entire list.
 

Last week trading

 

Overall, the strategy resulted in a +927.89% gain last week.
 

Initial account value (since inception: 12/07/2021): $3,600.00
Last week beginning value: $36,738.95
Last week ending value: $37,003.95 (0.72%; total: +927.89%)
The highest capital requirements to trade this strategy: $19,995
Current capital at risk: -$12,215
Unrealized Gain: $41,215 (-337.41%)
Realized Gain: -$7,655 (62.67%)
Total Gain: $33,560 (-274.74%)
Win Ratio: 56%
Average Winner: $315
Average Loser: $512

 

SPX PCS account value
SPX PCS account value
 

SPX PCS account vs SPX
SPX PCS account vs SPX index net liq
 

SPX PCS account vs SPX
SPX PCS account vs SPX index
 

If you want to receive trade alerts whenever we open a new SPX put credit spread or a hedge trade, you can subscribe to our service:

 

 

Note, if you wish to subscribe to multiple levels, you can do so by subscribing to one level only and then sending us an email that you want to be added to other levels too.

Also, if you like this report, hit the like button so I know there is enough audience wanting to see this type of report. If you have any questions or want to see anything else about my SPX trading, do not hesitate to contact me or write a comment in the comments section. Thank you!

 
 




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Posted by Martin October 09, 2022
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2022 Week 40 investing and trading report


Last week when the market rallied my account recovered and it went from $52k to over $65k in a day. Then it crashed and I am pretty much back where I started. Because of this extreme volatility and bearishness out there, I didn’t do too much trading last week. But I was buying the SPXL fund as I think this is the right thing to do. When the market goes down, I am buying this 3x leveraged ETF, and once the market recovers, I will be trimming that position. And, on top of that, I am selling covered calls.
 

I still struggle with cash and buying power. It is difficult to stay afloat. Many times during this bear market, it was the options dragging my account down, now my stocks joined the party and drag the account down too.

 
Cash - Net-Liq - BP 40
 

I didn’t trade much last week, only one covered call. That trading delivered +$54.00 premiums last week ending October 2022 at +$54.00 (+0.10%) options income. Our net-liq value increased by 4.36% to $54,372.41 value. That is still a terrible result. Our overall account is now down -48.04% YTD.
 

Here is our investing and trading report:

 

Account Value: $54,372.41 +$2,369.84 +4.36%
Options trading results
Options Premiums Received: +$54.00    
01 January 2022 Options: +$8,885.00 +8.36%  
02 February 2022 Options: +$10,009.00 +10.34%  
03 March 2022 Options: -$1,662.00 -1.47%  
04 April 2022 Options: +$1,047.00 +1.19%  
05 May 2022 Options: +$8,604.00 +11.32%  
06 June 2022 Options: +$9,691.00 +13.73%  
07 July 2022 Options: +$8,717.00 +11.39%  
08 August 2022 Options: +$7,987.00 +12.15%  
09 September 2022 Options: +$2,997.00 +5.76%  
10 October 2022 Options: +$54.00 +0.10%  
Options Premiums YTD: $56,329.00 +103.60%  
Dividend income results
Dividends Received: $66.10    
01 January 2022 Dividends: $303.38    
02 February 2022 Dividends: $732.81    
03 March 2022 Dividends: $393.74    
04 April 2022 Dividends: $337.31    
05 May 2022 Dividends: $343.99    
06 June 2022 Dividends: $445.80    
07 July 2022 Dividends: $367.66    
08 August 2022 Dividends: $683.58    
09 September 2022 Dividends: $555.20    
10 October 2022 Dividends: $66.10    
Dividends YTD: $4,229.57    
Portfolio Equity
Portfolio Equity: $155,598.37 +$10,690.90 +7.38%
Portfolio metrics
Portfolio Yield: 6.26%    
Portfolio Dividend Growth: 11.94%    
Ann. Div Income & YOC in 10 yrs: $93,721.93 50.84%  
Ann. Div Income & YOC in 20 yrs: $5,173,549.98 2,806.32%  
Ann. Div Income & YOC in 25 yrs: $151,140,212.01 81,984.01%  
Ann. Div Income & YOC in 30 yrs: $18,002,931,729.22 9,765,452.92%  
Portfolio Alpha: 98.29%    
Sharpe Ratio: -14.49 BAD  
Portfolio Weighted Beta: 0.47    
CAGR: 267.19%    
AROC: 66.55%    
TROC: 2.22%    
Our 2022 Goal
2022 Dividend Goal: $4,800.00 88.12% In Progress
2022 Portfolio Value Goal: $151,638.03 35.86% In Progress
6-year Portfolio Value Goal: $175,000.00 31.07% In Progress
10-year Portfolio Value Goal: $1,000,000.00 5.44% In Progress

 

Dividend Investing and Trading Report

 
Last week we have received $66.10 in dividends bringing our October’s dividend income at $66.10.


Last week, we bought these dividend growth stocks:

 
– 2 shares of COST @ $490.46
 
I plan on accumulating Costco shares and this is my initial investment. I will be slowly adding more shares in the near future until I reach 100 shares.

 

Here is a chart of our account equity showing our accumulation goal and the value of all stocks in our account. It shows a nice upward-sloping chart as our equities grow. This is a result of our options trading and using premiums to buy dividend stocks:

 
Account Equity week 40
 

And here you can see the dividend income those equities pay us every year:

 
Annual Dividend Payout week 40

 

Growth stocks Investing and Trading Report

 


Last week, we bought the following growth stocks and funds:
 

  • 35 shares of SPXL @ $62.60
     
    I accumulated 200 shares of this ETF and started selling another covered call contract. I believe, accumulating this 3x leveraged ETF during this bear market is a great opportunity that will pay big in a recovery.

     

Options Investing and Trading Report

 
Last week I was not trading options much. I only opened one covered call against SPXL. The call was with Friday’s expiration and it expired for a full profit. Next week I will reopen the position.

That trade delivered a gain of +$54.00 making our October options income +$54.00.

 

We were actively trading our SPX strategy that delivered -$85.00 loss.


 

Expected Future Dividend Income

 
We received $66.10 in dividends last week. Our portfolio currently yields 6.26% at $54,372.41 market value.

 
Our projected annual dividend income in 10 years is $93,721.93, but that projection is if we do absolutely nothing and let our positions grow without adding new positions or reinvesting the dividends.

We are also set to receive a $6,676.00 annual dividend income ($556.33 monthly income). We are 7.12% of our 10 year goal of $93,721.93 dividend income.

 
Future Divi on YOC week 40
 

The chart above shows how our future dividend income is based on the future yield on cost and what dividend income we may expect. The expected dividend growth depends on what stocks we add to our portfolio and the stocks’ 3 years average dividend growth rate. It is interesting to see what passive income we may enjoy 10, 20, 25, or 30 years from now.

 

Market value of our holdings

 
Our non-adjusted stock holdings market value increased from $144,907.47 to $155,598.37 last week.

In 2022 we plan on accumulating dividend stocks, monetizing these positions, HFEA strategy, and SPX trading. We plan to raise more of our holdings to 100 shares to sell covered calls. We continued rebalancing our options trades that released buying power significantly. That allowed us to start repurchasing shares of our interest.

 
Stock holdings trading week 40
 

We aim to accumulate 100 shares of dividend growth stocks we like and then start selling covered calls or strangles around those positions. We also planned on reinvesting all dividends back into those holdings.
 

Investing and trading ROI

 

Our options trading delivered a +0.10% monthly ROI in October 2022, totaling a 103.60% ROI YTD. If our options income stays at this level by the end of the year, we will exceed our 45% annual revenue goal in selling options against dividend stocks.

Our entire account is still down -48.04%.
 

Our options trading averaged $5,632.90 per month this year. If this trend continues, we will make $67,594.80 trading options in 2022. As of today, we have made $56,329.00 trading options.
 

Old SPX trades repair

 

We traded our SPX put credit spread strategy which you will be able to review in my next report. The SPX strategy has held well so far, and our signals kept us from opening new aggressive trades.

 

Investing and trading report in charts

 

Account Net-Liq

 

TW Account trading Net-Liq week 40
 

Account Stocks holding

 
TW Account holdings week 40
 

Last week, S&P 500 grew 25.82% since we opened our portfolio while our portfolio grew 2.54%. On YTD basis, the S&P 500 fell -38.94% and our portfolio -27.23%. This is an excellent result! We are significantly outperforming the market.

The numbers above apply to our stock holdings only. Our overall account net-liq is down by -48.04% this year.
 

Stock holdings Growth YTD

 
TW Account holdings Growth YTD
 

Our stock holdings are starting to outperform the market. Hopefully, this trend will stay, and we will constantly do better than S&P 500.
 

Our 10-year goal is to grow this account to $1,000,000.00 value in ten years. We are in year two and we accomplished 5.44% of that goal.
 

Our 6-year goal is to reach $175,000 account value to be eligible for portfolio margin (PM) and today we accomplished 31.07% of that goal.
 

Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 35.86% of this goal.

 

Investing and Trading Report – Options Monthly Income

 
TW Options Trading Income week 40
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Trading Income week 40
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 40
 

We plan to make $4,800.00 in dividend income in 2022. As of today, we received $4,229.57. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $6,676.00 a year. Our monthly projected dividend income is $556.33, and our current monthly dividend income is $352.46.
 

TW Received vs Future Dividends week 40

 

I have a favor to ask. If you like this report, please, hit the like like button button so I know that there is enough audience that like this content. Also, if there is something you want to know or you want me to change this report to a different format, let me know in the comments section.

 
 




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