Weekly Newsletter   Challenge account


2021 Week 2 results

The second week of 2021 is over and below are the results of our trading.
 

Account Value: $22,646.49 +$187.81 +0.84%
Options Premiums Received: $678.00
January 2021 Options: $1,910.00
Options Premiums YTD: $1,910.00
Dividends Received: $0.08
January 2021 Dividends: $41.58
Dividends YTD: $41.58
Portfolio Yield: 3.46%
Portfolio Dividend Growth: 6.11%

 

In the second week of January 2021, we have received $678.00 in options credits income. It is a good income for a week. But I have to note that although I am mostly a premium seller I from time to time buy options, for example, LEAPS. When LEAPS are purchased, it will be shown as debit and reduces credits received. It may look like a loss but it is not. I am looking for easy ways to separate these purchases from accounting and include them only after a trade is closed. Since I use data downloaded from my trading account and do not do this manually, I need to figure out how to do it automatically. Doing this manually would not be feasible for me.
 

TW Account Net-Liq
 

TW Account holdings
 

The table above shows our current holdings and gains on those holdings. Adjusted columns indicate how options help to boost (or ruining) our stock holdings appreciation, or in other words, lowering the cost basis. Without options, our holdings would be up 8.05% with options, our holdings are up 10.83% (from inception on 4/1/2019). The SPX is up 31.49% since inception. So our stock holdings do not beat the market. We beat the market thanks to trading options and generating additional income.
 

TW Account holdings YTD
 

TW Options Income week 2
 

TW Options Annual Income week 2
 

TW Received vs Projected Dividends week 2
 

The first week of 2021 started well. Let’s hope, it will continue that way.

I am still raising cash (investing it into the ICSH fund) for rainy days in the stock market. I was also trading less this week and most of the credits went toward cash reserves. The market shows weakness and I want to have enough cash to cover naked trades (making them cash-secured). We are still seeing a Christmas rally momentum but it is weakening and if we look back in history, we may expect up to four corrections a year. I want to be able to survive that correction without forced losses.





Leave a Reply

Your email address will not be published. Required fields are marked *