Posted by Martin July 23, 2022
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2022 Week 29 investing and trading report

Our trading account started growing again, recovering from the bear market losses. Our stock holdings reached the previous highs, partially due to new holdings additions and partially due to recovery. I think the recovery will continue as I am convinced that the bottom of this bear market is already in. It still may take time (on average, it can take additional 200 days or more) before this market recovers and reaches a new all-time high. But we are no longer going violently down. If we were doomed as talking heads and “experts” are telling us, we would be already selling off hard. If we are to have a bad recession and an additional 50% of a selloff, why is the market waiting?

I still struggle with our buying power as the broker is killing my margin. But if the market finally found its bottom (which still may not necessarily mean that we will start a new rally here), we should see a significant improvement.

Our trading delivered +$1,281.00 premiums last week ending July 2022 at +$6,309.00 (+8.64%) options income. Our net-liq value increased by +2.11% last week to $73,014.68 value, and our overall account is down -30.23% YTD.

Here is our investing and trading report:

Account Value:	$73,014.68	+$1,543.34	+2.11%
Options trading results
Options Premiums Received:	+$1,281.00
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:	+$6,309.00	+8.64%
Options Premiums YTD:	$41,602.00	+58.21%
Dividend income results
Dividends Received:	$24.52
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:	$234.85
Dividends YTD:	$2,791.88
Portfolio Equity
Portfolio Equity:	$154,114.62	+$3,127.53	+2.07%
Portfolio metrics
Portfolio Yield:	5.34%
Portfolio Dividend Growth:	11.42%
Ann. Div Income & YOC in 10 yrs:	$60,402.19	35.39%
Ann. Div Income & YOC in 20 yrs:	$1,880,230.58	1,101.57%
Ann. Div Income & YOC in 25 yrs:	$31,792,298.41	18,626.19%
Ann. Div Income & YOC in 30 yrs:	$1,722,349,845.79	1,009,075.33%
Portfolio Alpha:	53.51%
Sharpe Ratio:	-7.72	BAD
Portfolio Weighted Beta:	0.46
CAGR:	336.70%
AROC:	41.11%
TROC:	12.35%
Our 2022 Goal
2022 Dividend Goal:	$4,800.00	58.16%	In Progress
2022 Portfolio Value Goal:	$151,638.03	48.15%	In Progress
6-year Portfolio Value Goal:	$175,000.00	41.72%	In Progress
10-year Portfolio Value Goal:	$1,000,000.00	7.30%	In Progress

Dividend Investing and Trading Report

Last week we have received $24.52 in dividends bringing our July’s dividend income at $234.85. That is slightly below my expectations.

Last week, we bought these dividend growth stocks:

– 8 shares of IEP @ $50.56

Another addition of a dividend-paying stock in our portfolio. We now hold 70 shares.

– 2 shares of AAPL @ $153.07

We now hold 72 shares. Our goal is to accumulate 100 shares of this 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:

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

Growth stocks Investing and Trading Report

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

2 shares of GOOGL @ $112.77

I started accumulating Alphabet (GOOGL). We now own two shares, and our goal is to accumulate 100 shares of the stock.

Options Investing and Trading Report

Last week we rolled our strangle trades to keep our account safe. I also closed many trades for a profit, but these were debit trades.

However, these adjustments and closures delivered a gain of +$1,281.00 making our July options income +$6,309.00.

We were actively trading our SPX strategy that delivered +$1,020.00 gain.

You can watch all our trades in this spreadsheet. You can watch the spreadsheet and look for a “NEW” indication next to the trading date. When the indicator shows up, it is typically good for up to 3 days to follow that trade.

Expected Future Dividend Income

We received $24.52 in dividends last week. Our portfolio currently yields 5.34% at $73,014.68 market value.

Our projected annual dividend income in 10 years is $60,402.19, 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 $6,708.98 annual dividend income ($559.08 monthly income). We are 11.11% of our 10 year goal of $60,402.19 dividend income.

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 $150,987.09 to $154,114.62 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.

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 +8.64% monthly ROI in July 2022, totaling a 58.73% 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.

However, due to the market selloff and reduction of value in our equity, our entire account is down -30.23%.

Our options trading averaged $6,126.14 per month this year. If this trend continues, we will make $73,513.71 trading options in 2022. As of today, we have made $42,883.00 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 held well so far, and our signals kept us from opening new aggressive trades.

Investing and trading report in charts

Account Net-Liq

Account Stocks holding

Last week, S&P 500 grew 36.95% since we opened our portfolio while our portfolio grew 6.23%. On YTD basis, the S&P 500 fell -27.81% and our portfolio -23.55%. We are outperforming the market.

The numbers above apply to our stock holdings only. Our overall account net-liq is down by -30.23% this year.

Stock 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 7.30% 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 41.72% of that goal.

Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 48.15% of this goal.

Investing and Trading Report – Options Monthly Income

Investing and Trading Report – Options Annual Income

Our dividend goal and future dividends

We plan to make $4,800.00 in dividend income in 2022. As of today, we received $2,791.88. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $6,708.98 a year. Our monthly projected dividend income is $559.08, and our current monthly dividend income is $232.66.

I have a favor to ask. If you like this report, please, hit the like 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 July 23, 2022
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2022 SPX put credit spreads trading review – week 29

Last week, the SPX trading improved again. We traded a little last week. We opened new credit spreads and adjusted some older trades only.

Our trading delivered $1,020.00 gain. That brought our account down by 3.79% while SPX gained 2.55%.

Overall, the SPX account is up +675.05% since the beginning of this program, and we have $32,550 in unrealized gains.

Initial trade set ups

For my SPX strategy, I dedicated a $3,600 initial amount that will be used to trade SPX PCS strategy per week. If this amount is depleted, I will evaluate the strategy to determine whether to continue or change it. If I grow this amount, I will scale up the trading.

WHAT WILL WE TRADE?
DAY	DTE	TYPE
MONDAY	7 DTE & 40 delta	10 wide Put Credit Spread
TUESDAY	30 DTE & 40 delta	10 wide Put Credit Spread
WEDNESDAY	7 DTE & 40 delta	10 wide Put Credit Spread
FRIDAY	60 DTE & 14 delta	10 wide Put Credit Spread
EVERY MONTH	120 DTE	Put Debit Spread – HEDGE

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 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 set the set of rules and alerts and backtested them. The backtesting software proved that the strategy was viable and returned good gains. We also tried to automate the decision-making as much as possible to have the trading as mechanical as possible. This helps eliminate our emotions. The decision-making was reduced to: “bullish signal present” – open a trade, “not present” – stay away. It worked well.

Here you can see all our trades:

Click on the picture above to see the entire list.

We do not trade 0 DTE trades. This strategy is designed to be as passive as possible. You open a trade and let it run. You do not need to be glued to the computer all the time. The strategy takes advantage of the market’s historical behavior of mainly going up. Yes, there will be selloffs and corrections, even bear markets, but over time, it goes up. And therefore, our strategy is designed for this direction. The premise is that if we have a bullish trend, we open a bullish spread and let it run. 80% or 90% of the time, it will be a winning trade. And if the trend is strong, we open more aggressive trades (which is not the case today due to the market’s correction).

How much money can you trade?

As you can see in the table below, the highest amount of cash to trade this strategy is $19,995.00. That will allow adjustments, rolls, and comfortable trading without blowing your account. Can you trade less? Well, yes, I started with a $3,600 initial amount. But you need to be selective. You won’t trade all trades. You just trade the safest trades only (which is the Friday trade), especially in this market, and when the market gets out of this mess, you can start adding trades. And you do not compound. You must wait for the actual trade to end before opening a new trade. This way, the growth will be a lot slower, and you collect less credit, but you do not blow your account, mainly when you need to roll. You do not have money to do that (as the old busted trade will need more buying power which can be reduced by adding an offsetting trade that neutralizes the old trade, but you still will need that initial buying power).

Last week trading

Overall, the strategy resulted in a +675.05% gain last week.

Initial account value (since inception: 12/07/2021):	$3,600.00
Last week beginning value:	$26,881.95
Last week ending value:	$27,901.95 (+3.79%; total: +675.05%)
The highest capital requirements to trade this strategy:	$19,995
Current capital at risk:	-$2,550
Unrealized Gain:	$32,550 (-1,276.47%)
Realized Gain:	-$4,888 (191.69%)
Total Gain:	$27,662 (-1,084.78%)
Win Ratio:	57%
Average Winner:	$320
Average Loser:	$502

SPX PCS account value

Our SPX Net-Liq decreased last week. Our trading is still predominantly at a reduced mode and limited to just adjusting our existing trades, but we are slowly resuming regular trading.

SPX PCS account vs SPX index net liq

Our account is growing while the entire market is struggling. I am looking forward to this selling to end and the market resuming its bullish uptrend. We will be able to get into the more aggressive trades and boost our income significantly.

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:

SUBSCRIBE HERE

Note, if you wish to subscribe to multiple levels, you can do so by subscribing to one level only and then send 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 July 19, 2022
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Bear market is over

Yes, this bear market is over despite what the talking heads and other morons will try to tell you. Six months of selling and extreme bearishness is enough. Why? Despite the high inflation, which is, by the way, going down, supply chain issues that are improving, and a war in Ukraine, which is stalling, the US economy is still solid and able to overcome the FED’s interest rates.

People were used to cheap money and zero interest rates for a long time. They forgot what it looked like in times when the rates were at 3%, 6%, or even 13% high, and the US economy was capable of churning higher. Now, the FED raises rates to 3%, the economy slows down, and for many imbeciles out there, it means the end of the world. Wake up!

In this bear market, the stocks got adjusted. Many trash companies have already corrected 80% to 95%. Some may even go under, but that will have little impact on the overall market. And it cannot go below zero. If a trash company that made no income for years corrected by 90% drops another 10% and goes bankrupt, we will probably not notice it (unless you are the bag holder).

And the sound, high-quality companies that corrected with the trash companies, which is typical in bear markets, are now subject to bargain hunters. Get ready for FOMO.

We may see some choppiness as bears will not give up easily. Many burned bulls are now afraid and will be sitting on the sidelines as they won’t believe that the bear market is over. And when they get it, they will start chasing it and push this market higher.

The chart above shows that our next price target is at the $4,118 level. Expect some choppiness and battles between bears and bulls. Possibly even a pullback (this week will tell us how deep). Watch for the FED to pivot when that level clears, and inflation eases (and trust me, it will). And remember all those imbeciles on YouTube deleting their fearmongering predictions to avoid embarrassment.

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Posted by Martin July 16, 2022
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2022 Week 28 investing and trading report

Last week the stock market eased on the selling pressure, and we were able to increase positions in some of the beaten-down stocks and resume trading and not just adjust the old trades. If this trend continues, I expect even better trading results in the year’s second half.

I added more stocks last week, resumed options trading, and once again, I resumed creating cash reserves (invested in an ICSH fund) that should help us to get through this unruly market safely.

Our trading delivered +$1,409.00 premiums last week ending July 2022 at +$5,028.00 (+7.03%) options income. Our net-liq value decreased by -2.28% last week to $71,471.34 value, and our overall account is down -31.70% YTD.

Here is our investing and trading report:

Account Value:	$71,471.34	-$1,628.07	-2.28%
Options trading results
Options Premiums Received:	+$1,409.00
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:	+$5,028.00	+7.03%
Options Premiums YTD:	$41,602.00	+58.21%
Dividend income results
Dividends Received:	$146.73
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:	$210.33
Dividends YTD:	$2,767.36
Portfolio Equity
Portfolio Equity:	$150,987.09	+$16,070.95	+11.91%
Portfolio metrics
Portfolio Yield:	5.49%
Portfolio Dividend Growth:	11.65%
Ann. Div Income & YOC in 10 yrs:	$65,094.30	38.35%
Ann. Div Income & YOC in 20 yrs:	$2,349,570.57	1,384.14%
Ann. Div Income & YOC in 25 yrs:	$46,118,457.00	27,168.49%
Ann. Div Income & YOC in 30 yrs:	$3,127,359,989.02	1,842,335.30%
Portfolio Alpha:	52.95%
Sharpe Ratio:	-7.51	BAD
Portfolio Weighted Beta:	0.47
CAGR:	337.61%
AROC:	41.30%
TROC:	9.35%
Our 2022 Goal
2022 Dividend Goal:	$4,800.00	57.65%	In Progress
2022 Portfolio Value Goal:	$151,638.03	47.13%	In Progress
6-year Portfolio Value Goal:	$175,000.00	40.84%	In Progress
10-year Portfolio Value Goal:	$1,000,000.00	7.15%	In Progress

Dividend Investing and Trading Report

Last week we have received $146.73 in dividends bringing our July’s dividend income at $210.33. That is slightly below my expectations.

Last week, we bought these dividend growth stocks:

– 5 shares of CHD @ $94.40

I initiated this position with just five shares as a reminder to accumulate shares in this company. I will be adding more shares later.

– 30 shares of BAC @ $30.67

Accumulating shares of Bank of America was our immediate goal for 2022. With this purchase, we reached the goal and accumulated 100 shares. We immediately started selling cover calls.

– 32 shares of IEP @ $51.09

Another addition of a dividend-paying stock in our portfolio. We now hold 62 shares.

– 7 shares of AAPL @ $145.23

– 10 shares of WEYS @ $24.89

I initiated accumulating WEYS in our portoflio.

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

Growth stocks Investing and Trading Report

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

100 shares of ICSH @ $49.99

I use ICSH as a cash equivalent. I built some reserves in the past, but then I thought it was a waste of cash. So I liquidated some and invested it into other assets. And when this bear market hit, I suddenly became short on cash. A lesson learned. So I am now back to rebuilding my cash reserves. I will be slowly reinvesting all options profits and dividends into the ICSH fund until I reach my required cash reserves.

– 5 shares of ABNB @ $94.30

I think it is time to start slowly accumulating the beaten-down stocks. I like Airbnb, among others, and I plan on accumulating to reach 100 shares. Once I finish accumulating, I will start selling covered calls.

– 3 shares of SPY @ $379.88

I am adding a share of SPY to generate more passive income and growth. I plan on accumulating to reach 100 shares. Once I finish accumulating, I will start selling covered calls. I may even replace the covered calls using a poor man’s covered call strategy.

– 5 shares of SPXL @ $69.17

Accumulating SPXL is my aggressive growth position. Once the market starts rallying again, this fund will go up three times faster than the entire market. Yes, it also goes down three times the market, but no decline lasts forever, so this will recover one day, and SPXL will shine.

Options Investing and Trading Report

Last week we rolled our strangle trades to keep our account safe. I also closed many trades for a profit, but these were debit trades.

However, these adjustments and closures delivered a gain of +$1,409.00 making our July options income +$5,028.00.

We were actively trading our SPX strategy that delivered -$2,715.00 loss.

Expected Future Dividend Income

We have received $146.73 in dividends last week. Our portfolio currently yields 5.49% at $71,471.34 market value.

Our projected annual dividend income in 10 years is $65,094.30 but that projection is if we do absolutely nothing and let our positions grow on their own without adding new positions or reinvesting the dividends.

We are also set to receive a $6,633.62 annual dividend income ($552.80 monthly income). We are 10.19% of our 10 year goal of $65,094.30 dividend income.

Market value of our holdings

Our non-adjusted stock holdings market value increased from $141,593.41 to $150,987.09 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 start selling covered calls. We continued rebalancing our options trades that released buying power significantly. That allowed us to start repurchasing shares of our interest.

Investing and trading ROI

Our options trading delivered a +7.03% monthly ROI in July 2022, totaling a 58.21% 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.

However, due to the market selloff and reduction of value in our equity, our entire account is down -31.70%.

Our options trading averaged $5,943.14 per month this year. If this trend continues, we are on track to make $71,317.71 trading options in 2022. As of today, we have made $41,602.00 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 held well so far, and our signals kept us from opening new aggressive trades.