Last week of August (we will have a few days of August next week) and here is our weekly investing and trading report. Our account net-liq recovered from last week and created a new all-time high same as Nasdaq that broke up from a consolidation pattern and closed in a new all-time high too.
August turned out to be our second best month ever trading stock options. We made $6,181.00 this month. It was a bit shy of May’s income that reached $6,346.00. But the month is not completely over. We will have Monday and Tuesday next week. We still may be able to add additional income.
This month was also our best month in dividend income. We made over $600 in August in dividends.
Here is our investing and trading report:
| Account Value: | $81,273.47 | $3,722.07 | 4.80% |
| Options trading results | |||
| Options Premiums Received: | $1,657.00 | ||
| 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% | |
| 06 June 2021 Options: | $4,677.00 | +6.37% | |
| 07 July 2021 Options: | $3,865.00 | +5.14% | |
| 08 August 2021 Options: | $6,181.00 | +7.61% | |
| Options Premiums YTD: | $37,756.00 | +46.46% | |
| Dividend income results | |||
| Dividends Received: | $0.00 | ||
| 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: | $168.56 | ||
| 07 July 2021 Dividends: | $228.62 | ||
| 08 August 2021 Dividends: | $635.48 | ||
| Dividends YTD: | $1,527.64 | ||
| Portfolio metrics | |||
| Portfolio Yield: | 4.62% | ||
| Portfolio Dividend Growth: | 8.13% | ||
| Ann. Div Income & YOC in 10 yrs: | $19,399.37 | 18.39% | |
| Ann. Div Income & YOC in 20 yrs: | $166,234.77 | 157.62% | |
| Ann. Div Income & YOC in 25 yrs: | $776,315.49 | 736.07% | |
| Ann. Div Income & YOC in 30 yrs: | $5,788,821.57 | 5,488.69% | |
| Portfolio Alpha: | 39.33% | ||
| Portfolio Weighted Beta: | 0.68 | ||
| CAGR: | 693.79% | ||
| AROC: | 34.56% | ||
| TROC: | 17.32% | ||
| Our 2021 Goal | |||
| 2021 Dividend Goal: | $1,071.42 | 142.58% | Accomplished |
| 2021 Portfolio Value Goal: | $42,344.06 | 191.94% | Accomplished |
Dividend Investing and Trading Report
Last week, we have received a $0.00 dividends income. We have enough stock holdings to generate a $4,309.68 annual dividend income.
Last week, our dividend income reached 142.58% of our dividend income goal. We projected to receive $1,071 in dividends in 2021. Our growth was fast and we have received $1,527.64.
Here are our stock holdings that contribute to our dividend income:
Options Investing and Trading Report
Last week we rolled options that got in trouble. Rolling trades make us the most cash income, although not always that income is available to withdraw due to buying power collateral. The biggest trouble but also money maker was again BABA. We rolled our strangles to lower our puts as it seems, BABA is on the way down to $100 a share. So we wanted to give our trade more room to absorb this downtrend. We also rolled trades such as BEPC, AXP, and DKNG.
We also opened a few new trades against the previously expired trades such as AES, ABBV, KBE, O, and WEN strangles. Some trades couldn’t be opened (such as IJS, to APAM) because our broker restricted trading with these stocks due to fraudulent stock market manipulation. So we opened trades against AAPL and BA instead. A few new trades that were added on top of the reopened trades were a new trade against DKNG and OXY.
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
As the table at the beginning of this report indicates, our aggressive dividend growth stocks accumulation is starting to show significant progress in our current and future dividends income. Our portfolio dividend yield and dividend growth will be bringing us almost $166,234.77 in 20 years and $5,788,821.57 in 30 years. I wish, I had that $5.7 million income now. But that is the fate of dividend growth investing. It is not a quick rich scheme and building an account takes time.
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. In just 10 years, we will start receiving $19,399.37 in today’s dollars. It is not bad considering that in March 2021 it was only $3,202.52 in projected future dividends.
Our projected annual dividend income in 10 years is $19,399.37 but that is if we do absolutely nothing and let our positions grow on their own.
We are also set to receive a $4,309.68 annual dividend income. We are 22.22% of our 10 year goal!
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 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 $106,171.06 to $114,902.05.
As the markets and businesses continue growing, we expect the value of our holdings to grow even more. We are also building cash reserves to buy depressed stocks during selloffs and corrections as well as negative analysts reports (as long as the company is still good long term).
We are accumulating the dividend growth stocks (and some income-only stocks) not only to build a strong dividend income but also to create a “rental property” in our portfolio that can be monetized and generate additional income. This strategy will also provide safety for our strangles and cover our call side.
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 7.61% monthly ROI in August 2021, totaling a 46.46% ROI YTD. We exceeded our 45% annual revenue selling options against dividend stocks target!
Our account grew by 295.06% beating our projections and the market.
Our options trading averaged $4,719.50 per month this year. If this trend continues, we are on track to make $56,634.00 trading options in 2021. As of today, we have made $37,756.00 trading options. We are over halfway of the projected annual income.
Old SPX trades repair
This week, we didn’t adjust any SPX trades. Our goal is to reach a level that we will be eligible for portfolio margin (PM). Once that happens, we plan on converting the existing SPX Iron Condors to strangles and trade these positions as strangles.
With RegT margin, the capital requirements would be approx. $66,586.06 and that is beyond our means. With PM the requirement for margin would drop to around $10k. That is doable in our account. Once we reach this level, we will start adjusting our SPX trades accordingly. Until then, we will just roll these trades around.
Accumulating Growth Stocks
Last week, we added 1 share of AMZN to our holdings.
Our plan for the rest of the year is to accumulate cash. We only add dividend growth stocks when an opportunity shows up. Our rule for the rest of the year is to use 20% of our available buying power that is above $2,000 to buy new shares per week. The rest of the BP will be kept intact to grow our cash reserves.
Accumulating Dividend Growth Stocks
Last week, we added 20 shares of ICSH, 4 shares of AAPL, 10 shares of VICI, 5 shares of MU, and 25 shares of AES.
In the upcoming weeks, we will continue to accumulate the higher yield income stocks to boost our income and reinvest the proceeds but within our share purchasing plan for the rest of the year (see above section).
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:
You can see the entire spreadsheet here.
Market Outlook
The market rallied last week and created new all-time highs. At first, the market was muted by expected Powell’s speech in Jackson Hole in Wyoming and when Powell assured us that FED will pretty much do nothing as far as tapering (possibly some bond purchasing program reduction), the markets rallied again.
It was in fact obvious that even if Powell said something markets would not like, it would be shrugged off and we will rally again.
Our expectation was that S&P 500 reaches $4,500 during the last week of August and in September. We expected mostly flat movement. The market hit the target in the middle of the week.
We think the market will gain momentum for the rest of August and the first half of September 2021. It then may cool down a bit. But we think S&P 500 will reach the $4,600 mark by September 27th.
There is still no resistance for S&P500, so the sky is the limit. The support is at $4,377. The market’s trend is still bullish. It may change in the future, but it hasn’t changed yet.
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Investing and trading report in charts
Account Net-Liq
Account Stocks holding
Our stock holdings still do not beat the market but I am positive that the growth will pick up and exceeds the market. We just need time and continue reinvesting the proceeds. S&P 500 grew 55.89% since we opened our portfolio while our portfolio grew 21.20% only. On YTD basis, the S&P 500 grew 26.04% and our portfolio 14.22%.
But the numbers above apply to our stock holdings in our account, not the overall account net-liq growth. Our overall account beats the market growing by 295.06%!
Stock 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
Investing and Trading Report – Options Annual Income
Our dividend goal and future dividends
We have accomplished our dividend income goal. We planned to make $1,071 of dividend income this year and we finished receiving $1,527.64. However, we accumulated enough shares to start making $4,309.68 a year.
The chart above shows that our dividend holdings caught up with the dividend payout cycle and we started receiving monthly dividends as projected.
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.
As of today, our account cumulative return is 41.63% (note, data in this section are since March 13, 2021, only as that is the date we started tracking these metrics. Thus the results are skewed a bit and will show full picture next year.).
Conclusion of our investing and trading report
This week our options trading was within our expectations and I believe, the rest of the month will be even better.
We will continue accumulating the dividend growth stocks in our portfolio to reach 100 shares and continue building our cash reserves so we have enough cash to sustain any market corrections and be able to buy depressed stocks.
We will report our next week’s results next Saturday. Until then, good luck and good trading!
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