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2021 Week 36 investing and trading report

The second week of September turned out to be a volatile month. After the markets hit the new all-time high last week, we lost ground and retreated. I tried to find any information on why the markets went down but the only reason I could find was the economy and Covid fear. As I will write in this week’s investing and trading report, it had some impact on our account but not very much. And if you are a subscriber to our weekly newsletter, I will be writing in my weekly newsletter why I think this fear is unjustified and selling will possibly end sometimes soon.

The selloff in the market had an impact on our net-liquidating value that dropped -2.50% over the week while the S&P 500 lost -1.90% only. From that perspective, the market’s loss is a blip. We made only $5.71 in dividends and $911.00 in options premiums.

 

Here is our investing and trading report:

 

Account Value: $80,798.65 -$2,073.20 -2.50%
Options trading results
Options Premiums Received: $911.00    
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: $6,133.00 +7.40%  
09 September 2021 Options: $1,380.00 +1.71%  
Options Premiums YTD: $39,088.00 +48.38%  
Dividend income results
Dividends Received: $5.71    
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: $780.09    
09 September 2021 Dividends: $43.31    
Dividends YTD: $1,715.56    
Portfolio metrics
Portfolio Yield: 4.90%    
Portfolio Dividend Growth: 8.13%    
Ann. Div Income & YOC in 10 yrs: $21,877.05 20.24%  
Ann. Div Income & YOC in 20 yrs: $202,734.28 187.56%  
Ann. Div Income & YOC in 25 yrs: $1,008,288.49 932.83%  
Ann. Div Income & YOC in 30 yrs: $8,181,486.64 7,569.20%  
Portfolio Alpha: 41.39%    
Portfolio Weighted Beta: 0.66    
CAGR: 668.28%    
AROC: 48.67%    
TROC: 19.41%    
Our 2021 Goal
2021 Dividend Goal: $1,071.42 160.12% Accomplished
2021 Portfolio Value Goal: $42,344.06 190.81% Accomplished

 

Dividend Investing and Trading Report

 
Last week, we have received a $5.71 dividends income. We have enough stock holdings to generate a $4,471.22 annual dividend income.

Last week, our dividend income reached 160.12% of our dividend income goal. We projected to receive $1,071 in dividends in 2021. Our growth was fast and we have received $1,715.56.

Accumulating ABBV as it went down on FDA warning and Biden drugs price fears had a positive impact on our overall dividend growth and future dividend income. Yes, the regulation risk is here and I might be worried but on the other hand, how many past administrations were threatening to regulate the drug market? Just the last one, the Trump administration, also pledged that they would regulate drug prices. Yet nothing has happened. The Congress is so corrupt that the strong pharmaceutical lobby would most likely have no problem buying enough votes to put any bill off the table. It has happened before, it probably will happen again. So the market is overreacting. And I am buying.

Here are our stock holdings that contribute to our dividend income:

 
Annual Dividend Payout week 36
 

Options Investing and Trading Report

 
ABBV continued its decline on FDA warning about the side effects of a drug ABBV is manufacturing. It was not the only drug warning, so I assume it was a sort of a “bulletin of everything” warning. I have not seen it or read it so not sure what it looked like that it was so horrible to spook investors to start selling ABBV. The Biden poured more oil into the fire with his drug regulation proposal and the stock nose-dived. So I had to roll ABBV strangles down to protect my put side.

We also rolled a few other trades, such as SNOW. We converted our call spread of our Iron Condor into a put spread as the stock continued higher among all the red sea of stocks out there. We turned our at-the-money spread into the in-the-money puts. These puts are now OTM.

We rolled PPL, XOM, TSN, AXP, OMF, and O strangles. Mostly to the downside. Only a PPL strangle had to be rolled up.

And lastly, we opened a new call butterfly against Verizon (VZ).

Overall, I broke all my rules last week on accumulating stocks and scaling up the trades. That got me into trouble with available buying power. With pressure out there and increasing volatility, my BP is slashed and if the selling continues next week, I might be in trouble. So, it is time to get back to follow my rules and accumulate cash.
 

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 showing significant progress in our current and future dividends income. Our portfolio dividend yield and dividend growth will be bringing us almost $202,734.28 in 20 years and $8,181,486.64 in 30 years. It looks a bit unrealistic, but I verified the formula behind calculating the future value several times and got the same results. Nevertheless, I wish, I had that $8.2 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 $21,877.05 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 $21,877.05 but that is if we do absolutely nothing and let our positions grow on their own.

We are also set to receive a $4,471.22 annual dividend income. We are 20.44% of our 10 year goal!

 
Future Divi on YOC week 36
 

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

 
We were accumulating ABBV but we were also stopped out from our speculative positions. That caused our non-adjusted stock holdings market value decreasing from $118,145.31 to $115,443.70.

Despite selling, mainly stocks like ABBV and AES, it is nice to see how options help our stock holdings. Without trading options, our stock holdings would be up by $7,354.48 only. With options that offset our cost basis, our stock holdings are up by $19,124.05.

Our ABBV position would be showing -4.98% overall loss now, but monetizing the position using options we could return some of the invested capital and offset the cost basis, so ABBV is still 15.45% up! And AES would be down -9.33% but with options, we are up 68.74%.

However, over time, we expect the value of our holdings to grow and outperform the market. 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 didn’t have to use those reserves yet.

 
Stock holdings week 36
 

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 1.71% monthly ROI in September 2021, totaling a 48.38% ROI YTD. We exceeded our 45% annual revenue selling options against dividend stocks target!

Our account grew by 292.75% beating our projections and the market.
 

Our options trading averaged $4,343.11 per month this year. If this trend continues, we are on track to make $52,117.33 trading options in 2021. As of today, we have made $39,088.00 trading options. We are reaching our projected annual options income. Also, this is the largest options income we have ever achieved. So, now will be time to preserve that 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

 

We started accumulating SPXL and SSO leveraged ETFs. But because these ETFs can be also very damaging to the downside, we placed a stop loss to protect our account. On Friday last week, the stop losses were hit and we were out of the positions with a small loss. If the selling continues next week, we will sit tight. But if it stops, we may reenter those positions.

We also closed our GBOX position as it no longer fits our investing narrative.

 

Accumulating Dividend Growth Stocks

 

Last week, we added another 10 shares of ABBV taking the advantage of the stock’s selloff.

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:
 

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

 

Market Outlook

 

The market retreated sooner than I expected but it still holds its uptrend intact. I am still bullish on the stocks. But it may be a bumpy road. I am still maintaining the $4,570 price target for September.
 

SPX prediction next week

 

If you want to learn more about the stock market, events that moved the market last week and will likely impact it in the near future, I recommend you to subscribe to our weekly newsletter. Knowing where the market is heading and knowing when you should expect its reversal can benefit your trading and investing. Subscribe and you get one month free.

 

Investing and trading report in charts

 

Account Net-Liq

 

TW Account Net-Liq week 36

 

Account Stocks holding

 
TW Account holdings week 36
 

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 54.13% since we opened our portfolio while our portfolio grew 19.85% only. On YTD basis, the S&P 500 grew 24.29% and our portfolio 12.87%.

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 292.75%!
 

Stock holdings 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 36
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Income week 36
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 36
 

We have accomplished our dividend income goal. We planned to make $1,071 of dividend income this year and we finished receiving $1,715.56. However, we accumulated enough shares to start making $4,471.22 a year.
 

TW Received vs Future Dividends week 36

 

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 36
 

TW win ratio wk 35
 

As of today, our account cumulative return is 40.81% (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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