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Posted by Martin July 02, 2022
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June 2022 $100 Challenge account review


The stock market is still in a bear market and has high volatility. That is why we are accumulating stocks right now and do not trade options. This market is not good for a small account, so we must wait before we resume trading. Until then we will just accumulate.
 

Accumulation phase

 
The account is underperforming our goal. We will be investing in building equity positions first and wheeling the positions. We will resume strangles trading once the market leaves the bear market.
 

June 2022 Challenge account review

 

MONTH GOAL $$ ACTUAL $$
June 2021: $203.00 $202.67
July 2021: $306.00 $334.75
August 2021: $409.00 $397.71
September 2021: $512.00 $476.91
October 2021: $615.00 $632.37
November 2021: $718.00 $659.00
December 2021: $821.00 $802.08
January 2022: $924.00 $594.29
February 2022: $1,027.00 $283.87
March 2022: $1,130.00 $301.74
April 2022: $1,233.00 $350.56
May 2022: $1,336.00 $428.82
June 2022: $1,439.00 $459.70

 

$100 Challenge account review

 
From the chart above, the red dot (line) indicates the current account value, compared to the blue line (plan). Our account is underperforming our goal. But I expect this to improve with the market. We will keep buying assets and monetize them once we accumulate enough shares.
 

June 2022 Overall Challenge account review

 
The chart below indicates our account value compared to the overall goal and plans to grow the $100 investment into a $75,000 portfolio. As of today, we are still at the beginning of our journey.

YEAR CONTRIBUTIONS $$ GOAL $$ ACTUAL $$
Year 0: $100.00 $100.00 $100.00
Year 1: $1,300.00 $1,336.00 $459.70
Year 2: $2,500.00 $3,016.96  
Year 3: $3,700.00 $5,303.07  
Year 4: $4,900.00 $8,412.17  
Year 5: $6,100.00 $12,640.55  
Year 6: $7,300.00 $18,391.15  
Year 7: $8,500.00 $26,211.96  
Year 8: $9,700.00 $36,848.27  
Year 9: $10,900.00 $51,313.64  
Year 10: $12,100.00 $70,986.56  

 

$100 Challenge account review goal

 

June 2022 Challenge account Income

 

Total Invested in Stocks $595.24
Total Unrealized Profit -$139.47
Total Realized Profit -$1.17
Strangles Income -$1,316.00
Dividends Income $24.37
Deposits Total $1400.00
Cash $3.93
Net-Liq $459.70

 

Cumulative return Challenge account review

 

If you want to see what investments we take, and what trades and strategies we will use to grow this small account join our program today and grow your money too. We engage in safe investments, select strategies to maximize winning trades, and grow our portfolio. And you can do it too, today! We do not provide quick rich promises, gambling, or reckless strategies. We want our portfolio to grow steadily and preserve our capital while maximizing returns.
 

As a member, you will have access to the following features:
 

 

 




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Posted by Martin July 02, 2022
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HFEA June 2022 strategy report


The HFEA strategy improved significantly in June as I continued accumulating SPXL at lows and trimming TMF (at some point I plan on abandoning TMF completely. It didn’t protect my portfolio at all, so I plan on using SPXL only).

Originally, I dedicated $15,000 to this strategy. That represented approx. 15% of our portfolio. If the strategy underperforms and is below this amount, I will add cash to it. If it outperforms and ends above this threshold, I will trim the position and save the cash aside. We will be rebalanced quarterly, and our next rebalancing will occur at the end of June 2022.

The HFEA strategy is about investing in leveraged ETF but adding protection to the downside since the leverage works both ways. I like the idea because drawdowns can be significant.
 

MONTH NET-LIQ PROFIT/
LOSS
PROFIT/
LOSS %%
November 2021 $13,441.91 $0.00 0.00%
December 2021 $14,773.72 $1,331.81 9.91%
January 2022 $12,597.96 -$2,175.76 -14.73%
February 2022 $11,665.69 -$932.27 -7.40%
March 2022 $12,483.01 $817.32 7.01%
April 2022 $8,694.65 -$3,788.36 -30.35%
May 2022 $6,923.49 -$1,771.16 -20.37%
June 2022 $12,199.81 $5,276.32 76.21%

 

Our HFEA strategy lost -9.24% in June 2022 while the entire market lost -15.92%.
 

HFEA charts

 
HFEA net-liq 06
Strategy Net liquidation value
 

HFEA vs SPY net-liq 06
Strategy vs SPY Net liquidation value
 

HFEA vs SPY
Strategy performance vs. SPY
 

June 2022 turned out to be a good month ever for this strategy as the SPXL helped boost the account while we trimmed the TMF fund. I will be slowly re-allocating TMF and new cash into SPXL in preparation for the next market rally. When it comes, I expect this strategy to outperform the market significantly.
 
 




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Posted by Martin July 02, 2022
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2022 Week 26 investing and trading report


June 2022 is over and the first half of the year with it. It was a horrible half of the year for trading. Even the 2020 slump was better than this. But I look at it positively and keep investing in good quality stocks as much as my buying power allows. I suspended trading risky options strategies such as strangles. Now, I only trade covered calls and I only adjust my existing strangles as needed to keep my account’s buying power floating above zero.

I still keep struggling with buying power and overall margin. I still do not understand why I have such wild swings in the buying power when most of my risky trades are defined risk and I only have a few strangles now. Yet, my BP goes from $11k positive to $6k negative in a manner of minutes. Then, I receive a maintenance call, I adjust my trades, and my BP goes to $3k – $4k positive just to drop to negative $1k a few minutes or hours later. A total mess.

 
Cash - Net-Liq - BP 25
 

But I am surviving this and I hope, that when the market finally calms down, this will end. And I will also start building stronger cash reserves.

Our trading delivered +$928 premiums last week ending June 2022 at +$9,691.00 (+13.73%) options income. Our net-liq value decreased by -0.49% last week to $70,562.63 value, and our overall account is down -32.57% YTD.
 

Here is our investing and trading report:

 

Account Value: $70,562.63 -$342.29 -0.49%
Options trading results
Options Premiums Received: +$928    
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: +$2,640.00 +3.74%  
Options Premiums YTD: $39,214.00 +55.57%  
Dividend income results
Dividends Received: 160.52    
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: $27.10    
Dividends YTD: $2,584.13    
Portfolio Equity
Portfolio Equity: $134,916.14 -$1,043.48 -0.77%
Portfolio metrics
Portfolio Yield: 5.72%    
Portfolio Dividend Growth: 11.75%    
Ann. Div Income & YOC in 10 yrs: $65,912.34 41.91%  
Ann. Div Income & YOC in 20 yrs: $2,715,126.58 1,726.42%  
Ann. Div Income & YOC in 25 yrs: $60,362,418.94 38,381.69%  
Ann. Div Income & YOC in 30 yrs: $4,890,404,201.87 3,109,583.42%  
Portfolio Alpha: 49.33%    
Sharpe Ratio: -15.34 BAD  
Portfolio Weighted Beta: 0.58    
CAGR: 343.56%    
AROC: 39.68%    
TROC: 14.07%    
Our 2022 Goal
2022 Dividend Goal: $4,800.00 53.84% In Progress
2022 Portfolio Value Goal: $151,638.03 46.53% In Progress
6-year Portfolio Value Goal: $175,000.00 40.32% In Progress
10-year Portfolio Value Goal: $1,000,000.00 7.06% In Progress

 

Dividend Investing and Trading Report

 
Last week we have received 160.52 in dividends bringing our June’s dividend income at $445.80. That is slightly below my expectations.


Last week, we bought these dividend growth stocks:

 
– 2 shares of AAPL @ $137.00

 
I wish I could buy more stocks, but my buying power is so depressed that I have to wait for my broker to start releasing the margin and my cash. It should start happening shortly.
 

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 26
 

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

 
Annual Dividend Payout week 26

 

Growth stocks Investing and Trading Report

 


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

  • 10 shares of ICSH @ $50.02
    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.

 

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 still were debit trades.

However, these adjustments and closures delivered a gain of +$928 making our June options income +$9,691.00.

 

We were actively trading our SPX strategy that delivered $3,600.00 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 have received 160.52 in dividends last week. Our portfolio currently yields 5.72% at $70,562.63 market value.

 
Our projected annual dividend income in 10 years is $65,912.34 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 $6,008.92 annual dividend income ($500.74 monthly income). We are 9.12% of our 10 year goal of $65,912.34 dividend income.

 
Future Divi on YOC week 26
 

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 decreased from $135,959.62 to $134,916.14 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 repurchasing shares of our interest.

 
Stock holdings trading week 26
 

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 +13.73% monthly ROI in June 2022, totaling a 55.57% 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 -32.57%.
 

Our options trading averaged $5,602.00 per month this year. If this trend continues, we are on track to make $67,224.00 trading options in 2022. As of today, we have made $39,214.00 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

 

TW Account trading Net-Liq week 26

Currently, our net-liq value looks horrible. The decline is not because of taking losses but because of stock value reduction and rolling some options trades. When we roll a trade, we are closing it for a loss. The new trade offsets that loss, but it doesn’t show up in my books until the trade ends (unrealized gain or loss).

 

Account Stocks holding

 
TW Account holdings week 26
 

Last week, S&P 500 grew 32.24% since we opened our portfolio while our portfolio grew 2.23%. On YTD basis, the S&P 500 fell -32.52% and our portfolio -27.55%. We are outperforming the market.

The numbers above apply to our stock holdings only. Our overall account net-liq is down by -32.57% 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 be doing better than S&P 500 constantly.
 

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 7.06% 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 40.32% of that goal.
 

Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 46.53% of this goal.

 

Investing and Trading Report – Options Monthly Income

 
TW Options Trading Income week 26
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Trading Income week 26
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 26
 

We plan to make $4,800.00 in dividend income in 2022. As of today, we received $2,584.13. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $6,008.92 a year.
 

TW Received vs Future Dividends week 26

 

Our account cumulative return

 

I decided to retire this section as the software was expensive and this type of journaling was time-consuming.
 

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 July 02, 2022
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2022 SPX put credit spreads trading review – week 26


I was aggressively adjusting my SPX trades last week. I was using a “box” trade strategy to generate income and then used that income to roll the trades that were in the money. So far, this is the best way I could come up with to fix bad trades.

I hate taking losses so unlike other investors who use stop-loss I do not if I do not have to. But if I have to take a loss, I want an offsetting trade that will minimize that loss (or eliminate it). So right now, I am taking losses (as you will see below) but I have offsetting trades that brought in credits and I have tons of unrealized gains that will, at some point, kick in.

So how does the “box” work? First, the box is a trade where a short call is the same strike as a long put and a short put is the same strike as a long call. Here is a picture of the trade:
 

SPX PCS account value

 
The benefits of such trade are that I bring in a large credit and it uses very little buying power. The credit is usually large enough that I can use it to adjust multiple trades. With one box, I can adjust up to three or four bad trades, and when those trades expire out of the money (or I close them early) I will be out of the bad trade and release buying power.

You may ask why do such adjustments and not just close the trade? It depends on the bad trade position. Sometimes, closing the bad trade would mean closing it for a full loss of the entire spread, in our trading example that would be the entire $1,000 minus credits received. But rolling the trade down would be a loss of $500 – $600 minus received credits (and then expiring OTM). So, there will be a loss, but smaller.

On its own, the box is a horrible trade and I do not recommend using it as a trade on its own. But as means for repairs, I think it is a decent way to navigate out with lesser losses or even gains.
 

Last week, we were rolling and adjusting the trades which delivered $3,600.00 income. That brought our account up by +17.45% while SPX lost -2.21%.

However, note that the income is from the box trades, and in the near future, I will be using this income to offset and eliminate my old trades that are in bad shape.

Overall, the SPX account is up +573.11% since the beginning of this program, and we have $31,470 in unrealized gains. But there is no time to party over this result. We have plenty of “box” trades, which are difficult to manage. The box must be managed at some point as it is not a winning trade. It helps to buy time, but later, one or the other side must be adjusted. No matter where the market goes, the box will be a losing trade.

 

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.” If we have a bullish signal and bullish trend, we open the trade. 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.

Then 2022 came and put this strategy to a stiff test. The signals worked well, but we had old trades that got busted and didn’t have time to perform. So I had to evaluate the strategy. The original strategy was to let the trade expire in the money and take a loss. But I didn’t like it. I tested an option of rolling the trade rather than letting it be, and I feel much more comfortable with that.

Rolling a trade is still a losing trade because we close the old trade for a loss and open a new trade for a credit that partially offsets the loss. We also add a credit call spread or widen the put spread to get more credit. I believe that managing these trades and offsetting them with an opposite, adjusted, or new trade will result in fewer losses and more considerable gains. And so far, this strategy works.

Here you can see all our trades:

 
SPX PCS account value
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 +573.11% gain last week.
 

Initial account value (since inception: 12/07/2021): $3,600.00
Last week beginning value: $20,631.95
Last week ending value: $24,231.95 (+17.45%; total: +573.11%)
The highest capital requirements to trade this strategy: $19,995
Current capital at risk: $530
Unrealized Gain: $31,470 (+5,937.74%)
Realized Gain: -$7,478 (-1,410.94%)
Total Gain: $23,992 (+4,526.79%)
Win Ratio: 58%
Average Winner: $279
Average Loser: $508

 

SPX PCS account value
SPX PCS account value
 
Our SPX Net-Liq increased last week. The market is volatile and selling too much, and because of that, I am reducing our trading activity to just adjusting our existing trades.
 

SPX PCS account vs SPX
SPX PCS account vs SPX index net liq
 
Our account is growing while the entire market was struggling, even though last week SPX grew faster than our account. 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
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 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 June 26, 2022
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2022 Week 25 investing and trading report


Last week, our trading was not as successful as the week before. I still was battling with buying power issues and I had to close many trades early. I was closing them for a profit but smaller profit than expected and for debit. That debit lowered our options income by -$2,341.00. However, I could add a few more shares of dividend stocks to my portfolio, so overall, I consider last week a success.

I still keep struggling with buying power and overall margin. I still do not understand why I have such wild swings in the buying power when most of my risky trades are defined risk and I only have a few strangles now. Yet, my BP goes from $11k positive to $6k negative in a manner of minutes. Then, I receive a maintenance call, I adjust my trades, and my BP goes to $3k – $4k positive just to drop to negative $1k a few minutes or hours later. A total mess.

 
Cash - Net-Liq - BP 25
 

But I am surviving this and I hope, that when the market finally calms down, this will end. And I will also start building stronger cash reserves.

Our trading delivered -$2,341.00 premiums last week ending June 2022 at +$8,763.00 (+12.36%) options income. Our net-liq value increased by +8.81% last week to $70,904.92 value, and our overall account is down -32.24% YTD.
 

Here is our investing and trading report:

 

Account Value: $70,904.92 +$6,244.90 +8.81%
Options trading results
Options Premiums Received: -$2,341.00    
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: +$8,763.00 +12.36%  
Options Premiums YTD: $35,646.00 +50.27%  
Dividend income results
Dividends Received: $21.55    
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: $285.28    
Dividends YTD: $2,396.51    
Portfolio Equity
Portfolio Equity: $135,959.62 +$18,005.23 +15.26%
Portfolio metrics
Portfolio Yield: 5.74%    
Portfolio Dividend Growth: 11.75%    
Ann. Div Income & YOC in 10 yrs: $66,037.18 42.09%  
Ann. Div Income & YOC in 20 yrs: $2,734,484.09 1,742.75%  
Ann. Div Income & YOC in 25 yrs: $61,070,390.25 38,921.67%  
Ann. Div Income & YOC in 30 yrs: $4,978,126,709.660 3,172,683.33%  
Portfolio Alpha: 44.05%    
Sharpe Ratio: -17.85 BAD  
Portfolio Weighted Beta: 0.58    
CAGR: 348.18%    
AROC: 35.72%    
TROC: 15.26%    
Our 2022 Goal
2022 Dividend Goal: $4,800.00 49.93% In Progress
2022 Portfolio Value Goal: $151,638.03 46.76% In Progress
6-year Portfolio Value Goal: $175,000.00 40.52% In Progress
10-year Portfolio Value Goal: $1,000,000.00 7.09% In Progress

 

Dividend Investing and Trading Report

 
Last week we have received $21.55 in dividends bringing our June’s dividend income at $285.28. That is slightly below my expectations.


Last week, we bought these dividend growth stocks:

 
– 5 shares of TSCO @ $165.84
– 15 shares of GAIN @ $13.22

 
I wish I could buy more stocks, but my buying power is so depressed that I have to wait for my broker to start releasing the margin and my cash. It should start happening shortly.
 

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 25
 

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

 
Annual Dividend Payout week 25

 

Growth stocks Investing and Trading Report

 


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

  • 5 shares of ICSH @ $50.02
    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 rebuild my cash reserves. I will be slowly reinvesting all options profits and dividends into the ICSH fund until I reach my required cash reserves.
  • 27 shares of SPXL @ $65.14
    I keep buying SPXL when it is significantly undervalued. My reason is that it should grow faster than the market when it finally reverses and goes up. And I will keep buying when the fund’s price is under my cost basis. I will stop buying when the price exceeds my cost basis, and when the gains reach 50%, I will start trimming the position.

  • 2 shares of SPY @ $375.23
    I will be also adding SPY shares until I reach 100 shares and then I will be selling covered calls. SPY would be a more passive investment.

 

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 still were debit trades.

However, these adjustments and closures delivered a loss of -$2,341.00 making our June options income +$8,763.00.

 

We were actively trading our SPX strategy that delivered $1,725.00 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 have received $21.55 in dividends last week. Our portfolio currently yields 5.74% at $70,904.92 market value.

 
Our projected annual dividend income in 10 years is $66,037.18 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 $5,986.76 annual dividend income ($498.90 monthly income). We are 9.07% of our 10 year goal of $66,037.18 dividend income.

 
Future Divi on YOC week 25
 

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 decreased from $117,954.39 to $135,959.62 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 repurchasing shares of our interest.

 
Stock holdings trading week 25
 

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 +12.36% monthly ROI in June 2022, totaling a 50.27% 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 -32.24%.
 

Our options trading averaged $5,941.00 per month this year. If this trend continues, we are on track to make $71,292.00 trading options in 2022. As of today, we have made $35,646.00 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

 

TW Account trading Net-Liq week 25

Currently, our net-liq value looks horrible. The decline is not because of taking losses but because of stock value reduction and rolling some options trades. When we roll a trade, we are closing it for a loss. The new trade offsets that loss, but it doesn’t show up in my books until the trade ends (unrealized gain or loss).

 

Account Stocks holding

 
TW Account holdings week 25
 

Last week, S&P 500 grew 35.23% since we opened our portfolio while our portfolio grew 3.26%. On YTD basis, the S&P 500 fell -29.54% and our portfolio -26.52%. We are outperforming the market.

The numbers above apply to our stock holdings only. Our overall account net-liq is down by -32.24% 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 be doing better than S&P 500 constantly.
 

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 7.09% 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 40.52% of that goal.
 

Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 46.76% of this goal.

 

Investing and Trading Report – Options Monthly Income

 
TW Options Trading Income week 25
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Trading Income week 25
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 25
 

We plan to make $4,800.00 in dividend income in 2022. As of today, we received $2,396.51. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $5,986.76 a year.
 

TW Received vs Future Dividends week 25

 

Our account cumulative return

 

The chart below indicates our cumulative adjusted return since tracking this metric.
 

TW cumulative (overall) trading return wk 25
 

Here is the cumulative return for the year 2022:
 

TW cumulative (2022) trading return wk 25
 

Our win ratio overall:
 

TW trading win ratio (overall) wk 25
 

Our win ratio for 2022:
 

TW trading win ratio (2022) wk 25
 

As of today, our account overall cumulative return is -36.36% (note, data in this section are since March 13, 2021, only as that is the date we started tracking these metrics). Our 2022 cumulative return is -56.89%. That means we erased the entire 2021 revenue. That is a horrible result. But I am optimistic. As I mentioned above, the results are temporary as we are rolling our trades, and these rolls cause realized losses while we have open unrealized gains. Once the open trades end (when this horrible market finally calms down), the gains will offset the losses.

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 June 26, 2022
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2022 SPX put credit spreads trading review – week 25


Last week’s SPX trading strategy was again mostly about adjusting our old trades than trading new ones. The goal is to let the old trades expire one by one before we resume opening new trades. It will be a difficult task as many of our previous trades got deep in the money and need time and repairs. Some traders close the trades for a loss. They use stop-loss closing the trade at 2 times or 3 times of received credit but in a choppy market like the one we have right now, you may get easily chopped out, unless you stop trading whatsoever.

My approach is taking into account that over time markets go up, so I give bad trades time to recover and try to roll them as far away as possible. But that cost money. So I open a trade I call a box which offsets the cost although the box will need the same attention later. But with just one “box trade” I can adjust two or even three bad trades to get them to a position that they expire out-of-the-money. And when the market finally finds its solid direction and I resume normal trading, that will help generate enough credit to offset all bad trades. And of course, all that is done while we still keep our account growing.

Last week we were rolling and adjusting the trades which delivered $1,725.00 income. That brought our account up by +9.12% while SPX gained +6.45%.

Overall, the SPX account is up +473.11% since the beginning of this program, and we have $24,175 in unrealized gains. But there is no time to party over this result. We have plenty of “box” trades, which are difficult to manage. The box must be managed at some point as it is not a winning trade. It helps to buy time, but later, one or the other side must be adjusted. No matter where the market goes, the box will be a losing trade.

 

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 a 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.” If we have a bullish signal and bullish trend, we open the trade. 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.

Then 2022 came and put this strategy to a stiff test. The signals worked well, but we had old trades that got busted and didn’t have time to perform. So I had to evaluate the strategy. The original strategy was to let the trade expire in the money and take a loss. But I didn’t like it. I tested an option of rolling the trade rather than letting it be, and I feel much more comfortable with that.

Rolling a trade is still a losing trade because we close the old trade for a loss and open a new trade for a credit that partially offsets the loss. We also add a credit call spread or widen the put spread to get more credit. I believe that managing these trades and offsetting them with an opposite, adjusted, or new trade will result in fewer losses and more considerable gains. And so far, this strategy works.

Here you can see all our trades:

 
SPX PCS account value
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 +473.11% gain last week.
 

Initial account value (since inception: 12/07/2021): $3,600.00
Last week beginning value: $18,906.95
Last week ending value: $20,631.95 (+9.12%; total: +473.11%)
The highest capital requirements to trade this strategy: $19,995
Current capital at risk: $8,899.76
Unrealized Gain: $24,175 (+415.02%)
Realized Gain: -$3,638 (-62.45%)
Total Gain: $20,537 (+352.57%)
Win Ratio: 61%
Average Winner: $269
Average Loser: $491

 

SPX PCS account value
SPX PCS account value
 
Our SPX net-liq increased last week. The market is volatile and selling too much, and because of that, I am reducing our trading activity to just adjusting our existing trades.
 

SPX PCS account vs SPX
SPX PCS account vs SPX index net liq
 
Our account is growing while the entire market was struggling, even though last week SPX grew faster than our account. 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
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 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 June 18, 2022
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2022 Week 24 investing and trading report


The market continues to suck… a lot. But our trading did well last week. Extremely well. We rolled a bunch of trades and made adjustments as needed. We also had many covered calls expired last Friday, which we will be reopening next week.

But I still keep struggling with buying power and overall margin. My net-liq and cash curve just got inverted, meaning the broker took away all my margin, and I am 100% cash account:

 
Cash - Net-Liq - BP 24
 

It is not that my account is no longer margin approved, but instead, the broker increased margin requirements, and that shrinks the buying power. When the market calms down and reverses the course, the buying power will start growing too. Right now, I have to sustain the stress.

Our trading delivered $12,815.00 premiums last week ending June 2022 at +$11,104.00 (+17.17%) options income. However, with the market selloff, our net-liq value crashed down by -17.56% last week to $64,660.02 value, and our overall account is down -38.21% YTD.
 

Here is our investing and trading report:

 

Account Value: $64,660.02 -$11,351.51 -17.56%
Options trading results
Options Premiums Received: +$12,815.00    
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: +$11,104.00 +17.17%  
Options Premiums YTD: $37,987.00 +58.75%  
Dividend income results
Dividends Received: $67.08    
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: $263.73    
Dividends YTD: $2,374.96    
Portfolio Equity
Portfolio Equity: $117,954.39 -$12,867.54 -9.84%
Portfolio metrics
Portfolio Yield: 6.34%    
Portfolio Dividend Growth: 12.08%    
Ann. Div Income & YOC in 10 yrs: $79,803.38 53.01%  
Ann. Div Income & YOC in 20 yrs: $4,809,408.87 3,194.63%  
Ann. Div Income & YOC in 25 yrs: $153,612,270.36 102,036.25%  
Ann. Div Income & YOC in 30 yrs: $20,896,809,415.20 13,880,610.82%  
Portfolio Alpha: 51.96%    
Sharpe Ratio: 18.76 EXCELLENT  
Portfolio Weighted Beta: 0.64    
CAGR: 339.40%    
AROC: 42.23%    
TROC: 10.73%    
Our 2022 Goal
2022 Dividend Goal: $4,800.00 49.48% In Progress
2022 Portfolio Value Goal: $151,638.03 42.64% In Progress
6-year Portfolio Value Goal: $175,000.00 36.95% In Progress
10-year Portfolio Value Goal: $1,000,000.00 6.47% In Progress

 

Dividend Investing and Trading Report

 
Last week we have received $67.08 in dividends bringing our June’s dividend income at $263.73. That is slightly below my expectations.


Last week, we bought these dividend growth stocks:

 
– 10 shares of IEP @ $48.95

 
I wish I could buy more stocks, but my buying power is so depressed that I have to wait for my broker to start releasing the margin and my cash. It should start happening shortly.
 

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 24
 

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

 
Annual Dividend Payout week 24

 

Growth stocks Investing and Trading Report

 


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

 

  • 5 shares of SPXL @ $65.79
    I keep buying SPXL when it is significantly undervalued. My reason is that it should grow faster than the market when it finally reverses and goes up. And I will keep buying when the fund’s price is under my cost basis. I will stop buying when the price exceeds my cost basis, and when the gains reach 50%, I will start trimming the position.

  • 15 shares of SPXS @ $27.41
    I added an inverted ETF to provide some downside protection. It is not a significant trade but at least something.
  • Sold 10 shares of TQQQ @ $24.09
    I closed this position for a slight loss as the market crashed. I will re-enter when the mar\ket shows signs of reversal.

 

Options Investing and Trading Report

 
Last week we rolled our strangle trades to keep our account safe. Some of those rolls could have been avoided if I had enough cash reserves.

However, these adjustments delivered a gain of $12,815.00 making our June options income +$11,104.00.

 

We were actively trading our SPX strategy that delivered $1,615.00 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 have received $67.08 in dividends last week. Our portfolio currently yields 6.34% at $64,660.02 market value.

 
Our projected annual dividend income in 10 years is $79,803.38 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 $5,818.78 annual dividend income ($484.90 monthly income). We are 7.29% of our 10 year goal of $79,803.38 dividend income.

 
Future Divi on YOC week 24
 

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 decreased from $130,821.93 to $117,954.39 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 repurchasing shares of our interest.

 
Stock holdings trading week 24
 

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 +17.17% monthly ROI in June 2022, totaling a 58.75% 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 -38.21%.
 

Our options trading averaged $6,331.17 per month this year. If this trend continues, we are on track to make $75,974.00 trading options in 2022. As of today, we have made $37,987.00 trading options.
 

Old SPX trades repair

 

Last week we did not adjust any of our old trades. But we will be adjusting them soon.

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 from opening new aggressive trades.

 

Investing and trading report in charts

 

Account Net-Liq

 

TW Account trading Net-Liq week 23

Currently, our net-liq value looks horrible. The decline is not because of taking losses but because of stock value reduction and rolling some options trades. When we roll a trade, we are closing it for a loss. The new trade offsets that loss, but it doesn’t show up in my books until the trade ends (unrealized gain or loss).

 

Account Stocks holding

 
TW Account holdings week 24
 

Last week, S&P 500 grew 27.04% since we opened our portfolio while our portfolio grew -4.95%. On YTD basis, the S&P 500 fell -37.73% and our portfolio -34.73%. We are outperforming the market.

The numbers above apply to our stock holdings only. Our overall account net-liq is down by -38.21% 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 be doing better than S&P 500 constantly.
 

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 6.47% 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 36.95% of that goal.
 

Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 42.64% of this goal.

 

Investing and Trading Report – Options Monthly Income

 
TW Options Trading Income week 24
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Trading Income week 24
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 24
 

We plan to make $4,800.00 in dividend income in 2022. As of today, we received $2,374.96. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $5,818.78 a year.
 

TW Received vs Future Dividends week 24

 

Our account cumulative return

 

The chart below indicates our cumulative adjusted return since tracking this metric.
 

TW cumulative (overall) trading return wk 24
 

Here is the cumulative return for the year 2022:
 

TW cumulative (2022) trading return wk 24
 

Our win ratio overall:
 

TW trading win ratio (overall) wk 24
 

Our win ratio for 2022:
 

TW trading win ratio (2022) wk 24
 

As of today, our account overall cumulative return is -41.96% (note, data in this section are since March 13, 2021, only as that is the date we started tracking these metrics). Our 2022 cumulative return is -60.69%. That means we erased the entire 2021 revenue. That is a horrible result. But I am optimistic. As I mentioned above, the results are temporary as we are rolling our trades, and these rolls cause realized losses while we have open unrealized gains. Once the open trades end (when this horrible market finally calms down), the gains will offset the losses.

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 June 18, 2022
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2022 SPX put credit spreads trading review – week 24


Trading SPX strategy is challenging this year and very frustrating. I am not opening any new trades but managing the old ones as I got caught with those trades rapidly getting under the water. Should I have closed those trades for a loss? Some traders would. I have a loss aversion, so I decided to postpone the trades by moving them far away using a “box” strategy (Iron Fly). It costs very little buying power, and it offsets the losing trade. I buy time for a better opportunity to adjust the trade.

And rolling and adjusting the trades delivered $1,615.00 income last week. That brought our account up by +9.34% while SPX lost additional -5.79%.

Overall, the SPX account is up +425.19% since the beginning of this program, and we have $21,805 in unrealized gains. But there is no time to party over this result. We have plenty of “box” trades, which are difficult to manage. The box must be managed at some point as it is not a winning trade. It helps to buy time, but later, one or the other side must be adjusted. No matter where the market goes, the box will be a losing trade.

 

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 a 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.” If we have a bullish signal and bullish trend, we open the trade. 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.

Then 2022 came and put this strategy to a stiff test. The signals worked well, but we had old trades that got busted and didn’t have time to perform. So I had to evaluate the strategy. The original strategy was to let the trade expire in the money and take a loss. But I didn’t like it. I tested an option of rolling the trade rather than letting it be, and I feel much more comfortable with that.

Rolling a trade is still a losing trade because we close the old trade for a loss and open a new trade for a credit that partially offsets the loss. We also add a credit call spread or widen the put spread to get more credit. I believe that managing these trades and offsetting them with an opposite, adjusted, or new trade will result in fewer losses and more considerable gains. And so far, this strategy works.

Here you can see all our trades:

 
SPX PCS account value
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 +425.19% gain last week.
 

Initial account value (since inception: 12/07/2021): $3,600.00
Last week beginning value: $17,291.95
Last week ending value: $17,291.95 (+9.34%; total: +425.19%)
The highest capital requirements to trade this strategy: $19,995
Current capital at risk: $8,195
Unrealized Gain: $21,805 (+266.08%)
Realized Gain: -$2,983 (-36.40%)
Total Gain: $18,822 (+229.68%)
Win Ratio: 62%
Average Winner: $251
Average Loser: $476

 

SPX PCS account value
SPX PCS account value
 
Our SPX net-liq increased last week. The market is volatile and selling too much, and because of that, I am reducing our trading activity to just adjusting our existing trades.
 

SPX PCS account vs SPX
SPX PCS account vs SPX index net liq
 
Our account is growing while the entire market was struggling, even though last week SPX grew faster than our account. 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
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 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 June 11, 2022
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2022 Week 22-23 investing and trading report


Any positive expectations from the last few weeks just vanished, yet our trading and investing performed well last two weeks. The market was up and in a consolidation pattern, but on Thursday, investors started selling equities in expectation of bad inflation data. On Friday, we got bad data, and the market puked even more. Our options trading was outstanding. We erased all May losses and ended the month in green. Yet our net-liq lost value due to the market’s losses. I expect these losses to be temporary. Even if we go into recession, this market will not stay down forever. It may be down for a year or two (or even more), but I do not care. My stocks will keep paying me dividends, and I will keep selling options around those positions generating more income and buying more shares.

I am still frustrated with my buying power fluctuation. I have enough cash, and I have tons of equities, yet my BP is negative:

 
Cash - Net-Liq - BP 22-23
 

The chart above starts showing a bigger picture of the relation between my net-liquidating value and cash. As the two lines get closer together, it indicates that my margin is narrowing and my account is becoming a cash account. To keep my account floating above the water, I keep adjusting my open options trades to keep my buying power positive. This time, I could manage to roll my trades for credit.

These credit trades delivered $15,430.00 premiums last week ending May 2022. Our net-liq value went up by +11.32% last week and overall account is down -27.36% YTD. I hope, that when the market reverses and starts trading up again, this will change.
 

Here is our investing and trading report:

 

Account Value: $76,011.53 -$7,684.54 -10.11%
Options trading results
Options Premiums Received: +$15,430.00    
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: -$1,711.00 -2.25%  
Options Premiums YTD: $25,172.00 +33.12%  
Dividend income results
Dividends Received: $320.44    
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: $196.65    
Dividends YTD: $2,307.88    
Portfolio Equity
Portfolio Equity: $130,821.93 -$8,958.07 -6.41%
Portfolio metrics
Portfolio Yield: 5.77%    
Portfolio Dividend Growth: 11.97%    
Ann. Div Income & YOC in 10 yrs: $67,917.98 43.81%  
Ann. Div Income & YOC in 20 yrs: $3,119,704.74 2,012.20%  
Ann. Div Income & YOC in 25 yrs: $77,884,725.86 50,235.42%  
Ann. Div Income & YOC in 30 yrs: $7,548,283,058.87 4,868,620.24%  
Portfolio Alpha: 26.76%    
Sharpe Ratio: 5.76 EXCELLENT  
Portfolio Weighted Beta: 0.59    
CAGR: 366.40%    
AROC: 23.40%    
TROC: 13.23%    
Our 2022 Goal
2022 Dividend Goal: $4,800.00 48.08% In Progress
2022 Portfolio Value Goal: $151,638.03 50.13% In Progress
6-year Portfolio Value Goal: $175,000.00 43.44% In Progress
10-year Portfolio Value Goal: $1,000,000.00 7.60% In Progress

 

Dividend Investing and Trading Report

 
Last week we have received $320.44 in dividends bringing our May’s dividend income at $343.99. That is slightly below my expectations.


Last week, we bought these dividend growth stocks:

 
– 5 shares of IEP @ $51.23

 
I wish I could buy more stocks, but my buying power is so depressed that I have to wait for my broker to start releasing the margin and my cash. It should start happening shortly.
 

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 23
 

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

 
Annual Dividend Payout week 22-23

 

Growth stocks Investing and Trading Report

 

Last week, we purchased no growth stocks.

 

 

Options Investing and Trading Report

 
Last week we rolled our strangle trades to keep our account safe. Some of those rolls could have been avoided if I had enough cash reserves.

However, these adjustments delivered a gain of $15,430.00 making our May options income +$8,604.00. The beginning of June sits at a loss of -$1,711.00 premiums so far.

 

We were actively trading our SPX strategy that delivered $6,950.00 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 have received $320.44 in dividends last week. Our portfolio currently yields 5.77% at $76,011.53 market value.

 
Our projected annual dividend income in 10 years is $67,917.98 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 $5,898.78 annual dividend income ($491.57 monthly income). We are 8.69% of our 10 year goal of $67,917.98 dividend income.

 
Future Divi on YOC week 22-23
 

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 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 decreased from $139,780.89 to $130,821.93 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.

 
Stock holdings trading week 22-23
 

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 +11.32% monthly ROI in May 2022, totaling a 33.12% ROI YTD. We hope that in 2022 we exceed our 45% annual revenue selling options against dividend stocks target, although as of today, we are getting way behind this goal and it seems we will not achieve it at all.

Our entire account is down -27.36%.
 

Our options trading averaged $4,195.33 per month this year. If this trend continues, we are on track to make $50,344.00 trading options in 2022. As of today, we have made $25,172.00 trading options.
 

Old SPX trades repair

 

Last week we did not adjust any of our old trades. The market is playing with me. When all the ods looked good, and I had a chance to get rid of one bad trade, the market tanked, ruining my chance to improve the position. Now I am back at the beginning of my attempt to fix the old trade.

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 aggressive trades.

 

Investing and trading report in charts

 

Account Net-Liq

 

TW Account trading Net-Liq week 23

 

Account Stocks holding

 
TW Account holdings week 23
 

Last week, S&P 500 grew 34.85% since we opened our portfolio while our portfolio grew 4.80%. On YTD basis, the S&P 500 fell -29.91% and our portfolio -24.98%. We are outperforming the market.

The numbers above apply to our stock holdings only. Our overall account net-liq is down by -27.36% 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 be doing better than S&P 500 constantly.
 

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 7.60% 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 43.44% of that goal.
 

Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 50.13% of this goal.

 

Investing and Trading Report – Options Monthly Income

 
TW Options Trading Income week 23
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Trading Income week 21
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 23
 

We plan to make $4,800.00 in dividend income in 2022. As of today, we received $2,307.88. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $5,898.78 a year.
 

TW Received vs Future Dividends week 23

 

Our account cumulative return

 

The chart below indicates our cumulative adjusted return since we started tracking this metric.
 

TW cumulative (overall) trading return wk 23
 

Here is the cumulative return for the year 2022:
 

TW cumulative (2022) trading return wk 23
 

Our win ratio overall:
 

TW trading win ratio (overall) wk 23
 

Our win ratio for 2022:
 

TW trading win ratio (2022) wk 23
 

As of today, our account overall cumulative return is -31.78% (note, data in this section are since March 13, 2021, only as that is the date we started tracking these metrics). Our 2022 cumulative return is -53.79%. That means we erased the entire 2021 revenue. That is a horrible result. But I am optimistic. As I mentioned above, the results are temporary as we are rolling our trades, and these rolls cause realized losses while we have open unrealized gains. Once the open trades end (when this horrible market finally calms down), the gains will offset the losses.

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 June 11, 2022
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2022 SPX put credit spreads trading review – week 22-23


My family and I went on a vacation a week ago, so I skipped the SPX report a week ago. This report will be a combination of both weeks.

Surprisingly, the trading week ago and last week were not as bad as I thought they would be. We managed to roll the trades, and in fact, we brought in more credit than I expected.

Our strategy works and we could deliver $6,950.00 income in last two weeks. That brought our account up by +67.20% while SPX lost -6.19%.

Overall, the SPX account is up +393.67% since the beginning of this program, and we have $19,450 in unrealized gains.

We also had a trade that expired in the money (tomorrow) that we didn’t offset by a new box. We will do that next week, though.

 

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 a directional options trading. We are selling credit put spreads to collect premiums and hopefully, these spreads expire worthlessly or we buy them back for a small debit.

We use a set of indicators (mostly based on moving averages) and market sentiment that generates bullish signals. The trading is based on a “trend following strategy”. If we have a bullish signal and bullish trend, we open the trade. 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.

Then 2022 year came and put this strategy to a hard test in the violent market. The signals worked well, but we had old trades that got busted and didn’t have time to perform. So I had to evaluate the strategy. The original strategy was based on letting the trade expire in the money and take a loss. But I didn’t like it. I tested an option of rolling the trade rather than letting it be and I feel a lot more comfortable with that.

Rolling a trade is still a losing trade because we close the old trade for a loss and open a new trade for a credit that partially offsets the loss. We also add a credit call spread or widen the put spread to get more credit. I believe by managing these trades and offsetting them with an opposite, adjusted, or new trade will result in fewer losses and larger gains. And so far, this strategy works.

Here you can see all our trades:

 
SPX PCS account value
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 going mostly 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 even 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 for all 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 +393.67% gain last week.
 

Initial account value (since inception: 12/07/2021): $3,600.00
Last week beginning value: $10,341.95
Last week ending value: $17,291.95 (+67.20%; total: +393.67%)
The highest capital requirements to trade this strategy: $19,995
Current capital at risk: $8,550
Unrealized Gain: $19,450 (+227.49%)
Realized Gain: -$1,593 (-18.63%)
Total Gain: $17,857 (+208.85%)
Win Ratio: 63%
Average Winner: $250
Average Loser: $469

 

SPX PCS account value
SPX PCS account value
 
Our SPX net-liq increased significantly last week. The market is volatile and selling too much, and because of that, I am reducing our trading activity to just adjusting our existing trades.
 

SPX PCS account vs SPX
SPX PCS account vs SPX index net liq
 
Our account is growing while the entire market was struggling, even though last week SPX grew faster than our account. 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
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 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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