Last week the SPX went on a crazy downhill. At first, trading was calm but then it sped up and everybody was selling like crazy. Panic was the investment strategy. And who panicked first was the winner (sarcasm). The initial catalyst for selling was the FED raising the rates surprisingly more than expected. But seriously, what was so surprising about it? And what idiot believes that a few percentage points of higher interest rates above the current zero would destroy the economy?
Our trading and investing was good last week and though our account suffered as probably everyone’s account out there, we were able to stay afloat. Rebalancing our trades, selling out some risky positions, and raising cash helped us to mitigate the worst and be prepared for buying opportunities. And those opportunities will come!
Here is our investing and trading report:
| Account Value: |
$97,815.29 |
-$340.73 |
-0.35% |
| Options trading results |
| Options Premiums Received: |
$1,448.00 |
|
|
| 01 January 2022 Options: |
$5,706.00 |
+5.83% |
|
| Options Premiums YTD: |
$5,706.00 |
+5.83% |
|
| Dividend income results |
| Dividends Received: |
$5.77 |
|
|
| 01 January 2022 Dividends: |
$232.02 |
|
|
| Dividends YTD: |
$232.02 |
|
|
| Portfolio metrics |
| Portfolio Yield: |
5.66% |
|
|
| Portfolio Dividend Growth: |
8.10% |
|
|
| Ann. Div Income & YOC in 10 yrs: |
$33,014.87 |
25.66% |
|
| Ann. Div Income & YOC in 20 yrs: |
$373,608.11 |
290.34% |
|
| Ann. Div Income & YOC in 25 yrs: |
$2,176,467.68 |
1691.41% |
|
| Ann. Div Income & YOC in 30 yrs: |
$21,771,477.76 |
16,919.35% |
|
| Portfolio Alpha: |
-0.65% |
|
|
| Portfolio Weighted Beta: |
0.61 |
|
|
| CAGR: |
529.84% |
|
|
| AROC: |
5.96% |
|
|
| TROC: |
12.21% |
|
|
| Our 2022 Goal |
| 2022 Dividend Goal: |
$4,800.00 |
4.83% |
In Progress |
| 2022 Portfolio Value Goal: |
$151,638.03 |
64.51% |
In Progress |
| 6-year Portfolio Value Goal: |
$175,000.00 |
55.89% |
In Progress |
| 10-year Portfolio Value Goal: |
$1,000,000.00 |
9.78% |
In Progress |
Dividend Investing and Trading Report
Last week we have received $5.77 in dividends bringing January’s dividend income to $232.02.
We bought:
- 143 shares of OHI
- 100 shares of ENB
- 20 shares or RYLD
Here you can see our dividend income per stock holding:
Growth stocks Investing and Trading Report
Last week we bought the following growth stocks:
We closed our Amazon (AMZN) position but we plan to buy back once the panic selling is over. Originally we bought AMZN at $3,250 a share. We closed the position for $3,000 a share for a small loss. Now, the stock is trading at $2,850 a share. Surprisingly, APPL holds better than AMZN. Right now, just waiting for a good opportunity.
Options Investing and Trading Report
Last week we rolled our strangle trades to keep our account safe. That raised cash and buying power. Unfortunately, it didn’t help our net-liq much. We still went down.
These adjustments delivered our January income by $1,448.00 bringing January total to $5,706.00.
Once those trades are over, the net-liq will be released.
We were actively trading our SPX strategy that delivered $190.00 weekly income (loss).
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 have received $5.77 in dividends last week. Our portfolio currently yields 5.66% at $98,156.02 market value.
Our projected annual dividend income in 10 years is $33,014.87 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 $5,399.79 annual dividend income. We are 16.36% of our 10 year goal of $33,014.87 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 in the future. The expected dividend growth depends on what stocks we are adding 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 $131,493.57 to $132,015.51 last week.
In 2022 we plan on accumulating dividend stocks, monetizing these positions, HFEA strategy, and SPX trading. We plan on raising more of our holdings to 100 shares so we can start selling covered calls. We continued rebalancing our options trades that released buying power significantly. That allowed us to start buying shares of our interest again.
Our goal is to accumulate 100 shares of dividend growth stocks we liked and then start selling covered calls or strangles around those positions. We also planed on reinvesting all dividends back to those holdings.
Investing and trading ROI
Our options trading delivered a 5.83% monthly ROI in January 2022, totaling a 5.83% ROI YTD. We hope that in 2022 we exceed our 45% annual revenue selling options against dividend stocks target!
Our entire account is down -6.53% underperforming our projections and the market.
Our options trading averaged $5,706.00 per month this year. If this trend continues, we are on track to make $68,472.00 trading options in 2022. As of today, we have made $5,706.00 trading options.
Old SPX trades repair
This week, we didn’t adjust our old SPX trades. Our goal is to reach a level where we will be eligible for portfolio margin (PM). Once that happens, we plan on converting the existing SPX Iron Condors to strangles and trade these positions as strangles.
With RegT margin, the capital requirements would be approx. $66,586.06 and that is beyond our means. With PM the requirement for margin would drop to around $10k. That is doable in our account. Once we reach this level, we will start adjusting our SPX trades accordingly. Until then, we will just roll these trades around.
We however 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 away from opening new trades.
Market Outlook
The stock market lost almost 6% last week. That is very unusual price behavior and it happened like that only a few times in the past. What will happen next? No one knows. Originally, I wanted to add a few shorts to play the downward movement of the market but I think, the market may be down too much already and oversold, and we may see a bounce or a very strong counter-rally. Any shorts can rip you off. So, I decided to play it safe and stay out. When I see a sign of a reversal, that may be a point to start buying again and open new bullish trades. It may happen next month or in March. Until then, we must wait.
If you want to learn more about the stock market, events that moved the market last week and will likely impact it in the near future, I recommend you to subscribe to our weekly newsletter. Knowing where the market is heading and knowing when you should expect its reversal can benefit your trading and investing. Subscribe and you get one month free.
Investing and trading report in charts
Account Net-Liq
Account Stocks holding
Last week, S&P 500 grew 54.96% since we opened our portfolio while our portfolio grew 20.74%. On YTD basis, the S&P 500 fell -9.80% and our portfolio -9.04%. This clearly indicates that our stock holdings performed better than the market.
The numbers above apply to our stock holdings only. Our overall account net-liq dropped only by -6.53% this year thanks to our options strategies that generated enough income to stay up a bit.
Stock holdings Growth YTD
I expect our stock holdings to start outperforming the market hopefully soon.
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 9.78% 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 55.89% of that goal.
Our 2022 year goal is to grow this account to a $151,638.03. and today we accomplished 64.51% of this goal.
Investing and Trading Report – Options Monthly Income
Investing and Trading Report – Options Annual Income
Our dividend goal and future dividends
We planned to make $4,800.00 in dividend income in 2022. As of today, we received $232.02. This is in line with our projected dividend goal for January 2022. We also accumulated enough shares to start making $5,399.79 a year.
Our account cumulative return
The chart below indicates our cumulative adjusted return since we started tracking this metric.
Here is the cumulative return for the year 2022:
Our win ratio overall:
Our win ratio for 2022:
As of today, our account overall cumulative return is 34.30% (note, data in this section are since March 13, 2021, only as that is the date we started tracking these metrics. Thus the results are skewed a bit and will show full picture next year.) and our 2022 cumulative return is -9.03%.
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