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2021 Week 19 investing and trading report

The second week of May 2021 is over and here is our weekly investing and trading report. Last week was busy for us as we had to roll many of our trades down when the market started selling off due to inflation fears. But this fear, subsequent selloff, and a sharp recovery provided a great opportunity to add shares to our portfolio cheaply and boost our income significantly. Mess and panic create opportunity.

Let’s go and review this week’s investing and trading.

 

Here is our investing and trading report:

 

Account Value: $57,259.19 +$2,221.98 +4.04%
Options trading results
Options Premiums Received: $3,626.00    
01 January 2021 Options: $4,209.00 +16.65%  
02 February 2021 Options: $4,884.00 +15.41%  
03 March 2021 Options: $5,258.00 +12.79%  
04 April 2021 Options: $2,336.00 +4.30%  
05 May 2021 Options: $4,177.00 +7.29%  
Options Premiums YTD: $20,864.00 +36.44%  
Dividend income results
Dividends Received: $65.06    
01 January 2021 Dividends: $53.04    
02 February 2021 Dividends: $63.00    
03 March 2021 Dividends: $30.31    
04 April 2021 Dividends: $139.70    
05 May 2021 Dividends: $74.64    
Dividends YTD: $465.15    
Portfolio metrics
Portfolio Yield: 4.85%    
Portfolio Dividend Growth: 7.55%    
Ann. Div Income & YOC in 10 yrs: $10,956.20 18.55%  
Ann. Div Income & YOC in 20 yrs: $85,561.32 144.83%  
Ann. Div Income & YOC in 25 yrs: $363,003.91 614.47%  
Ann. Div Income & YOC in 30 yrs: $2,318,300.78 3,924.27%  
Portfolio Alpha: 26.72%    
Portfolio Weighted Beta: 0.97    
CAGR: 794.12%    
AROC: 36.83%    
TROC: 23.64%    
Our 2021 Goal
2021 Dividend Goal: $1,071.42 43.41%  
2021 Portfolio Value Goal: $42,344.06 135.22% Accomplished

 

Dividend Investing and Trading Report

 
Our dividend income picked up. We are seeing larger dividends coming to our account. We have received $65.06 in dividends last week, and I expect more dividends coming in the following weeks as we keep building our weekly dividend income.

The chart below indicates our current annual dividend payout from our dividend stock holdings. I am adding it to show how each stock contributes to our income. It is important for a dividend growth investor to be aware of this payout from each stock. The chart indicates that some stocks contribute (or will be contributing to our income with large sums while others contribute very little. That can be a problem. If a company that contributes with large dividends suddenly cuts the dividend, it will have a very significant impact on our income (for example, if OMF cuts the dividend, or suspends it, the impact on our portfolio dividend income will be significant.

During the accumulation phase, I am OK with this imbalance but plan to address it in the next phase of cultivating our portfolio.

Last week, our dividend income reached 43.41% of our dividend income goal.

 
Annual Dividend Payout week 19
 

Options Investing and Trading Report

 
Last week we continued trading options against the stocks we either already own or plan to buy in the near future. We opened new short strangles against ABBV, BA, OXY, AES, and rolled short strangles against T, OXY, KBE, MU, BA, AFL, CSCO, SPY, BNGO, TSN, SPCE, ABBV, AES, TSLA, AXP, BEPC, CROX, BAC, and APPL as these trades got one side of the trade into danger and we had to adjust to keep them in a sweet spot. Almost all our positions had to be adjusted. Unfortunately, it was a forced adjustment, meaning that as the market continued tanking, our margin requirements forced us to adjust these trades lower to stay safe. This can backfire as the market starts recovering sharply, I will have to roll these trades higher again for the same reason.

The new trades and adjustments delivered $3,626.00 options premiums last week.

You can watch all our trades in this spreadsheet and you can also subscribe to our newsletter for our trade alerts.
 

Expected Future Dividend Income

 
As the table above indicates, our aggressive dividend growth stocks accumulation is starting to show significant progress in our future dividends income. Our portfolio dividend yield and dividend growth will be bringing us almost $85,561.32 in 20 years and $2,318,300.78 in 30 years. It is a great improvement from the last report where we achieved a future dividend of $60,000 annually in 25 years. We will keep aggressively accumulating dividend growth stocks to generate liveable income sooner than in 20 years. And the portfolio is starting to show this to be happening.
 

Market value of our holdings

 
Our non-adjusted stock holdings market value increased from $60,327.92 to $62,960.61.

 
Stock holdings week 19
 
Our goal is to accumulate 100 shares of each stock of our interest and we are getting to that goal. However, as mentioned above, this has a negative impact on our dividend payout. Therefore, once we reach this goal (which we set because of the ability to trade covered calls), we will start accumulating these shares to equalize our dividend income rather than have an equal amount of shares.
 

Open trades

 
Investing and trading report
 

The table above shows our open trades (in a simplified version) and the margin or buying power required for those trades. I keep track of this to see what trades I have open and when these trades are set to expire. It helps me to see all trades in one place and I can review them all at one glance rather than browsing through all positions in a brokerage account trying to figure out which trade needs my attention. You can follow more detailed trades in this spreadsheet.

With new trades and trade adjustments, our BP reduction increased by 6.87% from $48,167.40 to $51,476.63 (+$3,309.235), yet our BP usage dropped from 125.60% to 123.70% (a 26% drop).

 

Investing and trading ROI

 

Our options trading delivered a 7.29% monthly ROI in May 2021, totaling a 36.44% ROI YTD.

Our account grew by 167.53% this year.
 

Our options trading averaged $4,172.80 per month this year. If this trend continues, we are on track to make $50,073.60 trading options in 2021.
 

Old SPX trades repair

 

This week we have not done any adjustments to our old SPX trades. We are still sitting on those trades and waiting for the untouched side to close so we can roll the trades again. The goal will be to roll the trades until we will be able to close them for at least break even and release the buying power. We will keep doing this only if the resulting trade will be a credit trade or a very small debit. If adjusting these trades would require adding more new money, we would rather close these trades and move on.

 

Accumulating Growth Stocks

 

Last week, we took advantage of tech selloff and added 5 shares of SNOW and 2 shares of TSLA to our positions. I know, it’s just a few shares, but these are expensive stocks and I can afford to accumulate these stocks slowly. We still want to accumulate 100 shares of this stock and start selling covered calls. As of now, we trade Iron Condors against this stock, but once we accumulate shares, we will switch to a CC.

 

Accumulating Dividend Growth Stocks

 

Our primary goal of our investing and trading strategy is to accumulate high-quality dividend growth stocks. Last week, we added 25 shares of OMF and finished our accumulation goal. We now hold 100 shares. We will move on accumulating another stock – APAM.

Our goal is to reach 100 shares of high-quality dividend stocks and build a weekly dividend income as per this calendar:
 

Weekly dividends income calendar
 

We are reaching our weekly dividend income goal as almost all weeks are filled with dividend income.

 

Market Outlook

 

The market continued the selloff fuelled by inflation fears and tech stocks retreat. The market was poised for a deeper decline but buyers stepped in and move the market higher creating a sharp V recovery. It still may turn lower next week, but it is unlikely. If we keep recovering we just cleared a 3.8% drop (pullback) not worth mentioning. As of now, it is difficult to estimate the next market move. We may still keep consolidating here or keep going higher.

 
SPX May 14 2021 outlook
 
However, this small mini-tiny-crash still offered a good opportunity to add more shares at good prices.

 

Investing and trading report in charts

 

Account Net-Liq

 

TW Account Net-Liq week 19

 

Account Stocks holding

 
TW Account holdings week 19
 

The table above shows our current holdings and gains. The “Options Adjusted” columns indicate how options help to boost (or ruin) our stock holdings appreciation, or in other words, lowering the cost basis. Without options, our holdings would be up 6.58%. With options, our holdings are up 15.69% (from inception on 4/1/2019). The SPX is up 44.29% since inception.

Our options adjusted stock holdings underperform the overall market (up only 15.69% vs SPX 44.29%). On a YTD basis, the market gained 14.44% while our options-adjusted stock holdings grew 8.71%.
 

Account Growth YTD

 
TW Account holdings Growth YTD
 

The stock holdings growth slowed down because we added many new stock positions and these positions didn’t have time to grow yet, so I expect the growth trend to improve over time and beat the market.
 

Investing and Trading Report – Options Monthly Income

 
TW Options Income week 19
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Income week 19
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 19
 

Our portfolio still doesn’t represent the true dividend income potential but we are seeing the results of our accumulation effort already. We are on track to accomplish our dividend income goal, currently, we are at 43.41% of the goal to reach $1,071 of dividend income this year.

However, the chart below indicates that our dividend income will possibly exceed this goal as we accumulated enough shares to receive $3,026.50 in dividends.
 

TW Received vs Future Dividends week 19

 

Our account cumulative return

 

The chart below indicates our cumulative adjusted return. It shows how the last week’s selloff shook down our returns but we are recovering along with the market.
 

TW cumulative return wk 19
 

As of today, our account cumulative return is 20.03% (since March 13, 2021).

 

Conclusion of our investing and trading report

 

This week our options trading exceeded our expectations. I hope, the rest of the month will be even better.

We will continue accumulating the dividend growth stocks in our portfolio to reach 100 shares. We will also replenish our cash reserves to bring them back to 25% of our current net-liq value.

We will report our next week’s results next Saturday. Until then, good luck and good trading!





4 responses to “2021 Week 19 investing and trading report”

  1. Leoni says:

    Great page, been following on/off since 2019.
    I‘m doing sth similar but with longer maturities puts, not that successful

    • Martin says:

      You either need to manage those trades (for that I found strangles work the best) or play a true wheel strategy. Let it assign and start selling covered calls.

  2. Michael Oliver says:

    How do I sign up for your trade alert newsletter? I am probably overlooking it but I do not see it. Thank you.

    Mike Oliver

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