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Posted by Martin August 06, 2022
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2022 Week 30 investing and trading report


The market kept improving last week. Investors started feeling left behind and started chasing the market. A classic FOMO. However, on Friday, the market retreated. In the morning, it lost over 1% but recovered most of the losses. And the reason? Better than expected job data. Whether the job data were cooked or not, analysts expected around 285k new jobs, and the economy provided over 500k jobs. And investors freaked out because the FED might continue raising the rates.
 

As the market improved, my buying power increased, and I could invest more money in dividend-paying stocks. This was something I expected to happen. I also started aggressively increasing my cash reserves.

 
Cash - Net-Liq - BP 30
 

The chart above shows our buying power decreasing, but it was because I am increasing cash reserves in the ICSH fund. I invest cash proceeds from trading and available buying power to this fund. It pays dividends and holds value. I use it as a cash equivalent.

However, my options trading last week was muted. I only adjusted a few trades and bought stocks. Nothing much.

Our trading delivered +$290.00 premiums last week ending August 2022 at +$290.00 (+0.37%) options income. Our net-liq value increased by +1.16% last week to $77,447.97 value, and our overall account is down -25.99% YTD.
 

Here is our investing and trading report:

 

Account Value: $77,447.97 +$896.12 +1.16%
Options trading results
Options Premiums Received: +$290.00    
01 January 2022 Options: +$8,885.00 +8.36%  
02 February 2022 Options: +$10,009.00 +10.34%  
03 March 2022 Options: -$1,662.00 -1.47%  
04 April 2022 Options: +$1,047.00 +1.19%  
05 May 2022 Options: +$8,604.00 +11.32%  
06 June 2022 Options: +$9,691.00 +13.73%  
07 July 2022 Options: +$8,717.00 +11.39%  
08 August 2022 Options: +$290.00 +0.37%  
Options Premiums YTD: $45,581.00 +58.85%  
Dividend income results
Dividends Received: $23.90    
01 January 2022 Dividends: $303.38    
02 February 2022 Dividends: $732.81    
03 March 2022 Dividends: $393.74    
04 April 2022 Dividends: $337.31    
05 May 2022 Dividends: $343.99    
06 June 2022 Dividends: $445.80    
07 July 2022 Dividends: $367.66    
08 August 2022 Dividends: $23.90    
Dividends YTD: $2,948.59    
Portfolio Equity
Portfolio Equity: $181,350.10 +$2,777.70 +1.56%
Portfolio metrics
Portfolio Yield: 5.19%    
Portfolio Dividend Growth: 11.42%    
Ann. Div Income & YOC in 10 yrs: $63,957.98 33.65%  
Ann. Div Income & YOC in 20 yrs: $1,876,971.50 987.47%  
Ann. Div Income & YOC in 25 yrs: $30,132,318.16 15,852.48%  
Ann. Div Income & YOC in 30 yrs: $1,521,157,049.51 800,273.98%  
Portfolio Alpha: 53.68%    
Sharpe Ratio: 3.82 EXCELLENT  
Portfolio Weighted Beta: 0.46    
CAGR: 337.01%    
AROC: 40.61%    
TROC: 13.90%    
Our 2022 Goal
2022 Dividend Goal: $4,800.00 61.43% In Progress
2022 Portfolio Value Goal: $151,638.03 51.07% In Progress
6-year Portfolio Value Goal: $175,000.00 44.26% In Progress
10-year Portfolio Value Goal: $1,000,000.00 7.74% In Progress

 

Dividend Investing and Trading Report

 
Last week we have received $23.90 in dividends bringing our August’s dividend income at $23.90. That is slightly below my expectations.

Last week, we did not purchase any dividend stock.

 

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

 
Account Equity week 31
 

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

 
Annual Dividend Payout week 31

 

Growth stocks Investing and Trading Report

 


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

  • 5 shares of CROX @ $72.87
     
    I plan on accumulating 100 shares of this stock. Currently, I am at 20 shares.

 

  • 2 shares of ICSH @ $50.03
     
    I keep accumulating ICSH as my cash reserves.

 

  • 5 shares of AMZN @ $135.63
     
    I am also accumulating AMZN to reach 100 shares.
     

Overall, last week was great accumulating stocks I like to own and reaching my goal. I now have many of my strangles covered to the upside. I will continue building cash reserves to cover my put sides (I still have many naked).

 

Options Investing and Trading Report

 
Last week I resumed trading some positions, but I was still adjusting the existing trades.

However, these adjustments delivered a gain of +$290.00 making our August options income +$290.00.

 

We were actively trading our SPX strategy that delivered +$40.00 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 $23.90 in dividends last week. Our portfolio currently yields 5.19% at $77,447.97 market value.

 
Our projected annual dividend income in 10 years is $63,957.98, 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 $7,104.18 annual dividend income ($592.01 monthly income). We are 11.11% of our 10 year goal of $63,957.98 dividend income.

 
Future Divi on YOC week 31
 

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 $178,572.40 to $181,350.10 last week.

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

 
Stock holdings trading week 31
 

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

Investing and trading ROI

 

Our options trading delivered a +0.37% monthly ROI in August 2022, totaling a 58.85% ROI YTD. If our options income stays at this level by the end of the year, we will exceed our 45% annual revenue goal in selling options against dividend stocks.

Our entire account is still down -25.99%.
 

Our options trading averaged $5,697.63 per month this year. If this trend continues, we will make $68,371.50 trading options in 2022. As of today, we have made $45,581.00 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 31
 

Account Stocks holding

 
TW Account holdings week 31
 

Last week, S&P 500 grew 43.30% since we opened our portfolio while our portfolio grew 17.25%. On YTD basis, the S&P 500 fell -21.47% and our portfolio -12.52%. This is an excellent result! We are significantly outperforming the market.

The numbers above apply to our stock holdings only. Our overall account net-liq is down by -25.99% this year.
 

Stock holdings Growth YTD

 
TW Account holdings Growth YTD
 

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

Our 10-year goal is to grow this account to $1,000,000.00 value in ten years. We are in year two and we accomplished 7.74% 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 44.26% of that goal.
 

Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 51.07% of this goal.

 

Investing and Trading Report – Options Monthly Income

 
TW Options Trading Income week 31
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Trading Income week 31
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 31
 

We plan to make $4,800.00 in dividend income in 2022. As of today, we received $2,948.59. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $7,104.18 a year. Our monthly projected dividend income is $592.01, and our current monthly dividend income is $245.72.
 

TW Received vs Future Dividends week 31

 

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 August 06, 2022
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2022 SPX put credit spreads trading review – week 31


Last week, I didn’t trade SPX trades much. I only opened two trades and mostly was sitting on my hands waiting for those trades to expire which will be happening next week and two weeks later. The overall profitability is improving again as I no longer defend the old trades but start opening new ones and generating income.
 

Our trading delivered $40.00 gain. That brought our account up by 0.14% while SPX gained 0.37%.
 

Overall, the SPX account is up +698.14% since the beginning of this program, and we have $34,229 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 volume profile) 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:

 
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 +698.14% gain last week.
 

Initial account value (since inception: 12/07/2021): $3,600.00
Last week beginning value: $28,692.95
Last week ending value: $28,732.95 (+0.14%; total: +698.14%)
The highest capital requirements to trade this strategy: $19,995
Current capital at risk: -$1,229
Unrealized Gain: $34,229 (-2,785.11%)
Realized Gain: -$5,737 (466.80%)
Total Gain: $28,492 (-2,318.31%)
Win Ratio: 57%
Average Winner: $318
Average Loser: $490

 

SPX PCS account value
SPX PCS account value
 

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

SPX PCS account vs SPX
SPX PCS account vs SPX index
 

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

 

 

Note, if you wish to subscribe to multiple levels, you can do so by subscribing to one level only and then 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 30, 2022
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2022 Week 30 investing and trading report


The market responded precisely as I expected. Not sure if it was because of being a TA genius or pure luck. I would guess the latter one. Well, I started using volume profile analysis, and that helped me a lot in identifying supports and resistances, so I expected that the market would reach the $4,120 level:

 
SPX trading levels
 

But I suck at predicting the market, and I hope this will help. It did last week, and I positioned many of my trades accordingly. All winners.

However, the most exciting thing is that our portfolio started beating the market significantly. We were outperforming the market on the way down, but we are outperforming it even more on the way up. I hope it will stay like that.
 

As the market improved, my buying power also increased, and I could invest more money in dividend-paying stocks. This was something I expected to happen. I also started aggressively increasing my cash reserves.

 
Cash - Net-Liq - BP 30
 

Our trading delivered +$2,408.00 premiums last week ending July 2022 at +$8,717.00 (+11.39%) options income. Our net-liq value increased by +4.62% last week to $76,551.85 value, and our overall account is down -26.85% YTD.
 

Here is our investing and trading report:

 

Account Value: $76,551.85 +$3,537.17 +4.62%
Options trading results
Options Premiums Received: +$2,408.00    
01 January 2022 Options: +$8,885.00 +8.36%  
02 February 2022 Options: +$10,009.00 +10.34%  
03 March 2022 Options: -$1,662.00 -1.47%  
04 April 2022 Options: +$1,047.00 +1.19%  
05 May 2022 Options: +$8,604.00 +11.32%  
06 June 2022 Options: +$9,691.00 +13.73%  
07 July 2022 Options: +$8,717.00 +11.39%  
Options Premiums YTD: $45,291.00 +59.16%  
Dividend income results
Dividends Received: $132.81    
01 January 2022 Dividends: $303.38    
02 February 2022 Dividends: $732.81    
03 March 2022 Dividends: $393.74    
04 April 2022 Dividends: $337.31    
05 May 2022 Dividends: $343.99    
06 June 2022 Dividends: $445.80    
07 July 2022 Dividends: $367.66    
Dividends YTD: $2,924.69    
Portfolio Equity
Portfolio Equity: $178,572.40 +$24,457.78 +15.87%
Portfolio metrics
Portfolio Yield: 5.18%    
Portfolio Dividend Growth: 11.42%    
Ann. Div Income & YOC in 10 yrs: $63,457.49 33.59%  
Ann. Div Income & YOC in 20 yrs: $1,858,332.61 983.57%  
Ann. Div Income & YOC in 25 yrs: $29,777,234.61 15,760.40%  
Ann. Div Income & YOC in 30 yrs: $1,499,396,266.14 793,595.49%  
Portfolio Alpha: 54.00%    
Sharpe Ratio: 3.78 EXCELLENT  
Portfolio Weighted Beta: 0.46    
CAGR: 339.20%    
AROC: 41.21%    
TROC: 9.73%    
Our 2022 Goal
2022 Dividend Goal: $4,800.00 60.93% In Progress
2022 Portfolio Value Goal: $151,638.03 50.48% In Progress
6-year Portfolio Value Goal: $175,000.00 43.74% In Progress
10-year Portfolio Value Goal: $1,000,000.00 7.66% In Progress

 

Dividend Investing and Trading Report

 
Last week we have received $132.81 in dividends bringing our July’s dividend income at $367.66. That is slightly below my expectations.


Last week, we bought these dividend growth stocks:

 
– 30 shares of IEP @ $51.17
 
I kept accumulating this stock and reached our goal last week. We now hold 100 shares, and I started selling covered calls.

 
– 28 shares of AAPL @ $153.41
 
Our goal was to accumulate 100 shares of this stock. Last week, we accomplished this goal.

 

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 30
 

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

 
Annual Dividend Payout week 30

 

Growth stocks Investing and Trading Report

 


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

  • 15 shares of SPXL @ $74.70
     
    I was accumulating SPXL to gain as much exposure for the upcoming recovery.

 

  • 62 shares of ICSH @ $50.04
     
    I keep accumulating ICSH as my cash reserves.

 

  • 38 shares of SNOW @ $132.95
     
    Accumulating SNOW to reach 100 shares. I accomplished that goal last week.

 

  • 16 shares of TMUS @ $134.75
     
    After I accomplished my goal of accumulating IEP and AAPL, my next target was TMUS and SNOW. I started accumulating both.

 

  • 5 shares of AMZN @ $121.40
     
    I am also accumulating AMZN to reach 100 shares.
     

Overall, last week was great accumulating stocks I like to own and reaching my goal. I now have many of my strangles covered to the upside. I will continue building cash reserves to cover my put sides (I still have many naked).

 

Options Investing and Trading Report

 
Last week I resumed trading some positions, but I was still adjusting the existing trades.

However, these adjustments delivered a gain of +$2,408.00 making our July options income +$8,717.00.

 

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 $132.81 in dividends last week. Our portfolio currently yields 5.18% at $76,551.85 market value.

 
Our projected annual dividend income in 10 years is $63,457.49, 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 $7,100.10 annual dividend income ($591.67 monthly income). We are 11.19% of our 10 year goal of $63,457.49 dividend income.

 
Future Divi on YOC week 30
 

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 $154,114.62 to $178,572.40 last week.

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

 
Stock holdings trading week 30
 

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 +11.39% monthly ROI in July 2022, totaling a 59.16% ROI YTD. If our options income stays at this level by the end of the year, we will exceed our 45% annual revenue goal in selling options against dividend stocks.

Our entire account is still down -26.85%.
 

Our options trading averaged $6,470.14 per month this year. If this trend continues, we will make $77,641.71 trading options in 2022. As of today, we have made $45,291.00 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 30
 

Account Stocks holding

 
TW Account holdings week 30
 

Last week, S&P 500 grew 42.78% since we opened our portfolio while our portfolio grew 16.47%. On YTD basis, the S&P 500 fell -21.98% and our portfolio -13.30%. This is an excellent result! We are significantly outperforming the market.

The numbers above apply to our stock holdings only. Our overall account net-liq is down by -26.85% this year.
 

Stock holdings Growth YTD

 
TW Account holdings Growth YTD
 

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

Our 10-year goal is to grow this account to $1,000,000.00 value in ten years. We are in year two and we accomplished 7.66% 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 43.74% of that goal.
 

Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 50.48% of this goal.

 

Investing and Trading Report – Options Monthly Income

 
TW Options Trading Income week 30
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Trading Income week 30
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 30
 

We plan to make $4,800.00 in dividend income in 2022. As of today, we received $2,924.69. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $7,100.10 a year. Our monthly projected dividend income is $591.67, and our current monthly dividend income is $243.72.
 

TW Received vs Future Dividends week 30

 

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 30, 2022
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July 2022 $100 Challenge account review


The stock market is still in a bear market but recovering fast. We need to wait a bit longer to see if this is just a bear market rally or an actual reversal. There may be a pullback now, but I think we are back on track to a bull market recovery. We got hit at the beginning of this bear market when we had to close options trades due to extreme volatility and stay way. For a small account, trading naked strangles can be risky. But we have time on our side, and we will be accumulating for now.
 

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.
 

July 2022 Challenge account review

 

MONTH GOAL $$ ACTUAL $$
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
July 2022: $1,542.00 $641.27

 

$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.
 

July 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 $641.27
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

 

July 2022 Challenge account Income

 

Total Invested in Stocks $686.48
Total Unrealized Profit -$65.40
Total Realized Profit -$1.17
Strangles Income -$1,316.00
Dividends Income $26.72
Deposits Total $1500.00
Cash $15.04
Net-Liq $641.27

 

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 30, 2022
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HFEA July 2022 strategy report


The HFEA strategy continued improving significantly in July. I continued accumulating SPXL at lows and eliminated TMF. Now my strategy will be to accumulate SPXL when the fund drops 25% below my cost basis and trim the gains when it goes 25% above my cost basis. I will save the proceeds for the declines and purchases.

Initially, 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.

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. However, with my adjustment, this is no longer an HFEA strategy. But for continuation, I will keep calling it in my reports.
 

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%
July 2022 $15,551.55 $3,351.74 27.47%

 

Our HFEA strategy recovered all losses by July 2022 and is now up 15.69% while the entire market lost -9.14%.
 

HFEA charts

 
HFEA net-liq 07
Strategy Net liquidation value
 

HFEA net-liq 07
Strategy vs SPY Net liquidation value
 

HFEA vs SPY
Strategy performance vs. SPY
 

June 2022 was a good month for this strategy as the SPXL helped boost the account while we trimmed the TMF fund. I will slowly re-allocate 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 30, 2022
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2022 SPX put credit spreads trading review – week 30


Our SPX trading is improving, and we are slowly returning to regular trading. Yet I am still cautious, keep it slow, and keep my strikes as far away from the market as possible. The market reached previous strong support, now resistance, and after the strong rally we saw last week, we may have a strong pullback (bears will hear it as the victory of their doomsday predictions). So, I will be entering more aggressive trades after the pullbacks. In the meantime, I will be building up cash reserves.
 

Our trading delivered $791.00 gain. That brought our account up by 2.83% while SPX gained 4.26%.
 

Overall, the SPX account is up +697.03% since the beginning of this program, and we have $34,089 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 volume profile) 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:

 
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 +675.05% gain last week.
 

Initial account value (since inception: 12/07/2021): $3,600.00
Last week beginning value: $27,901.95
Last week ending value: $28,692.95 (+2.83%; total: +697.03%)
The highest capital requirements to trade this strategy: $19,995
Current capital at risk: -$3,089
Unrealized Gain: $34,089 (-1,103.56%)
Realized Gain: -$5,637 (182.49%)
Total Gain: $28,452 (-921.07%)
Win Ratio: 57%
Average Winner: $318
Average Loser: $495

 

SPX PCS account value
SPX PCS account value
 
Our SPX Net-Liq increased 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
SPX PCS account vs SPX index net liq
 

SPX PCS account vs SPX
SPX PCS account vs SPX index
 

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

 

 

Note, if you wish to subscribe to multiple levels, you can do so by subscribing to one level only and then 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 28, 2022
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Apple (AAPL) shines with record revenue, stock up 3% AH


I am glad I bought shares of AAPL yesterday and raised my holdings up to 100 shares. Now I will be collecting dividends and premiums from covered calls. I will be wheeling the holdings and collecting even more premiums.

As soon as I bought it, the stock reported record earnings. Despite people freaking out about a recession that may not last or come at all. I think we are in a recession (defined by a declining economy and GDP), but it is not a recession that would be catastrophic. It is instead an economic slowdown.

Apple proves the economy is strong (remember all the gurus predicting that Apple would miss?).

 
AAPL AH trading
 

The stock is now in a rapid recovery, and I expect that tomorrow, it will help push the S&P 500 higher (though I wish we had a pullback).

 
AAPL AH trading
 

Apple didn’t lose much during this bear market. It held relatively well compared to other companies (Apple only lost about 24% since January 2022, while most tech companies lost close to 40%). It was probably one of the reasons why the S&P 500 didn’t lose more. Stocks like AAPL simply held it up.
 

  • Revenue: $83 billion versus $82.7 billion expected
  • Earnings per share: $1.20 versus $1.16 expected
  • iPhone revenue: $40.7 billion versus $38.9 billion expected
  • iPad revenue: $7.22 billion versus $6.9 billion expected
  • Mac revenue: $7.4 billion versus $8.4 billion expected
  • Wearables revenue: $8.1 billion versus $8.8 billion expected
  • Services revenue: $19.6 billion versus $19.7 billion expected
     
     



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Posted by Martin July 28, 2022
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Amazon beats earnings estimates. Stock up 11% AH


Amazon beats Wall Street estimates for 2Q. Shares gained over 11% in after-hours trading:

 
AMZN AH trading
 

Amazon lost a lot of value in this bear market. It erased all gains from the 2021 market frenzy. But if you were selling, you made a big mistake. You should be buying, at least, you should be buying now.

 
AMZN AH trading
 

Barron’s estimates that this stock will triple in the next few years so the current levels are a great opportunity. That is why I am buying shares of this stock, and I plan to accumulate 100 shares to start selling covered calls and generate “dividends” from holding this stock.
 

Here are the most significant numbers from Amazon’s earnings today, as compiled by Bloomberg:

  • Revenue: $121.2 billion versus $119.53 billion expected
  • Loss per share: $0.20
  • Amazon Web Services (AWS) net sales: $19.74 billion actual versus $19.4 billion expected
     
     



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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.

 
Cash - Net-Liq - BP 29
 

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:

 
Account Equity week 29
 

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

 
Annual Dividend Payout week 29

 

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.

 
Future Divi on YOC week 29
 

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.

 
Stock holdings trading week 29
 

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

 

TW Account trading Net-Liq week 29
 

Account Stocks holding

 
TW Account holdings week 29
 

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

 
TW Account holdings Growth YTD
 

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

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

 
TW Options Trading Income week 29
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Trading Income week 29
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 29
 

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.
 

TW Received vs Future Dividends week 29

 

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 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:

 
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 +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
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
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
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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