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2021 Week 25 investing and trading report

June 2021 is almost over, one more week and the month’s books can be closed. Although our options income was good this month, our account grew little compared to previous months. As you will see in this investing and trading report, our net-liq went up by 5.15% this month only. Our options revenue was 5.47% this month. Our dividend income reached $142.13 for June totaling $637.11 for the year 2021. However, June is not yet over, we still have one week to go and it may all change.
 

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

 

Here is our investing and trading report:

 

Account Value: $72,388.89 $2,377.24 +3.40%
Options trading results
Options Premiums Received: $1,407.00    
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: $6,346.00 +9.22%  
05 June 2021 Options: $3,961.00 +5.47%  
Options Premiums YTD: $26,994.00 +37.29%  
Dividend income results
Dividends Received: $32.75    
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: $167.45    
06 June 2021 Dividends: $142.13    
Dividends YTD: $637.11    
Portfolio metrics
Portfolio Yield: 4.65%    
Portfolio Dividend Growth: 8.44%    
Ann. Div Income & YOC in 10 yrs: $15,928.83 19.33%  
Ann. Div Income & YOC in 20 yrs: $150,048.39 182.08%  
Ann. Div Income & YOC in 25 yrs: $766,137.56 929.67%  
Ann. Div Income & YOC in 30 yrs: $6,543,526.56 7,940.21%  
Portfolio Alpha: 29.64%    
Portfolio Weighted Beta: 0.74    
CAGR: 784.70%    
AROC: 36.09%    
TROC: 22.60%    
Our 2021 Goal
2021 Dividend Goal: $1,071.42 59.46%  
2021 Portfolio Value Goal: $42,344.06 170.95% Accomplished

 

Dividend Investing and Trading Report

 
Last week, we have received a $32.75 in dividends income. We feel that the income will be growing faster as more of our holdings mature and become eligible for dividend payouts. According to our holdings currently on our balance sheet, all stocks should generate $3,602.93 annual dividend income. It is not as of yet because many of the stocks were purchased recently and we missed their dividend. But next year, we should be receiving the full amount.

The chart below indicates our current annual dividend payout from our dividend stock holdings.

Last week, our dividend income reached 59.46% of our dividend income goal.

 
Annual Dividend Payout week 25
 

Options Investing and Trading Report

 
Last week we rolled a few trades that got in trouble. The market continued declining just to reverse a few days later. The trades that we were adjusting to the downside suddenly needed to be adjusted to the upside.

We opened a covered call against newly acquired KBE shares and re-opened trades that expired last week, such as strangle against ABBV, OXY, AES, and O. Then we rolled trades such as AAPL, OXY, DKNG, AXP, BABA, BA, and WEN.

The new trades and adjustments delivered $1,407.00 options premiums last week.
 

We had only one trade that expired for a full profit:
 

1 ABBV Jun25 110 put / 118 call strangle for +0.49 credit
 

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 at the beginning of this report 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 $150,048.39 in 20 years and $6,543,526.56 in 30 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.

 
Future Divi on YOC week 25
 

The chart above shows how our future dividend income based on the future yield on cost and what dividend income we may expect in the future. The expected dividend growth depends on what stocks we are adding to our portfolio and the stocks’ 3 years average dividend growth rate. It is interesting to see what passive income we may enjoy 10, 20, 25, or 30 years from now.

 

Market value of our holdings

 
Our non-adjusted stock holdings market value increased from $83,739.91 to $88,163.26. Last week, we added a few stock positions to our portfolio, such as 15 shares of ICSH, and 10 shares of ABBV. We now hold 77 shares of ABBV in this portfolio and we will continue accumulating to reach 100 shares as quickly as possible.

 
Stock holdings week 25
 

Our goal is to accumulate 100 shares of each stock of our interest and we are getting to that goal.
 

Investing and trading ROI

 

Our options trading delivered a 5.47% monthly ROI in June 2021, totaling a 37.29% ROI YTD.

Our account grew by 251.87% this year despite very slow growth in June. I suggest the growth was suppressed by the market volatility and options trades increasing their maintenance requirements that ate the net-liq value. Once the options expire (hopefully) the net liquidating value will go up faster.
 

Our options trading averaged $4,499.00 per month this year. If this trend continues, we are on track to make $53,988.00 trading options in 2021. With the income of $26,994.00 to date, we are half way to this projected income.
 

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 didn’t add any speculative or growth stocks to our portfolio. But, we will be adding SNOW to reach 100 shares. It is interesting to see people out there and investors taking notice of this stock. I mentioned this stock for the first time on Facebook in December 2020 and started buying shares of the company since then:

“I think they are betting on the cloud business competing AMZN. I also think SNOW can get a nice market share and the price could go way higher over time. AMZN’s valuation was also always crazy when it was trading for 300 a share. Today, it trades at 3000+ a share… and it is still a crazy valuation…
I think they consider entering into AMZN to be too late as AMZN is maturing and the growth will be slowing. SNOW is a new company and its growth can be multifold.”

If you look at my reports, many times I was mentioning SNOW as a great stock to be in, that it could become a new Amazon in cloud service. One year later (almost a year) people are starting to take notice.

 

Accumulating Dividend Growth Stocks

 

Last week, we added 10 shares of ICSH (which is our savings account equivalent), and 10 shares of ABBV to our portfolio.

Our goal is to reach 100 shares of high-quality dividend stocks and build a weekly dividend income as per this calendar, but we have made no changes to this goal last week:
 

Weekly dividends income calendar
 
You can see the entire spreadsheet here.

 

Market Outlook

 

The stock market continued being trendless until Wednesday, June 23rd, 2021, then, on Thursday after the White House announcement of a bipartisan infrastructure deal, the market spiked up and broke out of the sideways channel. Could this be the beginning of another leg up?

Thursday’s breakout seems to be confirmed on Friday. If we see more uptrend on Monday, we may expect another leg up of this market.

 
SPX June 26 2021 outlook
 

With current S&P 500 earnings at 195, the intrinsic value of the market is at $4,095 a share. That makes this market overvalued. But we are still recovering from the pandemic and businesses are expected to grow. The earnings forecast for 2022 is at 205 per share and that would make this market’s intrinsic value $4,305. If this market keeps going sideways, the evaluation may catch up with the current price.

 

70% probability of going up

 

Based on the numbers and earnings of the market, the trend momentum shifted to the upside dramatically over the last week. Unless this breakout turns out to be fake.

 

Investing and trading report in charts

 

Account Net-Liq

 

TW Account Net-Liq week 25

 

Account Stocks holding

 
TW Account holdings week 25
 

Our stock holdings still do not beat the market. However, I expect it to change over time. S&P 500 grew 47.98% since we opened our portfolio while our portfolio grew 17.85% only. On YTD basis, the S&P 500 grew 18.14% and our portfolio 10.87%.
 

Account Growth YTD

 
TW Account holdings Growth YTD
 

I expect our stock holdings to start outperforming the market as they mature. However, these are just our stock holdings. The entire portfolio beats the market by far thanks to monetizing those positions.

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

 

Investing and Trading Report – Options Monthly Income

 
TW Options Income week 25
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Income week 25
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 25
 

We are on track to accomplish our dividend income goal, currently, we are at 59.46% 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 $3,602.93 in dividends.
 

TW Received vs Future Dividends week 25

 

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 25
 

As of today, our account cumulative return is 27.02% (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!





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