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2021 Week 48 investing and trading report

November 2021 and the beginning of December 2021 ended up as my worst performance so far. Of course, I can’t expect that our account will go always up only, there will be drawdowns, but as you will see in this investing and trading report, our net-liq lost $8,562 which represents a loss of 8.93% since the account peak. But from then the account balance started losing ground. The net-liq was losing value despite our stock holdings increasing in value (+1.14%), our cash holdings increased in value (+59.24%), our options income increased in November by 5.24% and our dividend income also exceeded our monthly goal.

I tried to find what was causing this slump while all other metrics were actually better than the previous ones and all I could find was volatility and tech stocks selloff. What does it indicate? If the market improves, this drawdown is just a temporary decline that will improve again.
 

Here is our investing and trading report:

 

Account Value: $87,278.33 -$3,870.87 -4.25%
Options trading results
Options Premiums Received: $1,054.00    
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: $2,353.00 +2.97%  
10 October 2021 Options: $8,721.00 +9.27%  
11 November 2021 Options: $4,577.00 5.24%  
Options Premiums YTD: $55,654.00 +63.77%  
Dividend income results
Dividends Received: $114.08    
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: $176.60    
10 October 2021 Dividends: $256.73    
11 November 2021 Dividends: $463.90    
Dividends YTD: $2,667.85    
Portfolio metrics
Portfolio Yield: 4.46%    
Portfolio Dividend Growth: 8.80%    
Ann. Div Income & YOC in 10 yrs: $21,999.61 18.90%  
Ann. Div Income & YOC in 20 yrs: $216,801.56 186.30%  
Ann. Div Income & YOC in 25 yrs: $1,166,376.41 1002.30%  
Ann. Div Income & YOC in 30 yrs: $10,899,423.40 9,366.14%  
Portfolio Alpha: 57.38%    
Portfolio Weighted Beta: 0.59    
CAGR: 562.01%    
AROC: 48.75%    
TROC: 18.15%    
Our 2021 Goal
2021 Dividend Goal: $1,071.42 249.00% Accomplished
2021 Portfolio Value Goal: $42,344.06 206.12% Accomplished
6-year Portfolio Value Goal: $175,000.00 49.87%  
10-year Portfolio Value Goal: $1,000,000.00 8.73%  

 

Dividend Investing and Trading Report

 
Last week we have received no dividends. Our dividend income is still well in line with our goals and plans. We planned on receiving $472.82 in dividends in November and so far we have received $463.90 income.

Here you can see our dividend income per stock holding:

 
Annual Dividend Payout week 48
 

Options Investing and Trading Report

 
Selloffs in the markets are great for me. I keep saying, when the investors out there panic, I make the most of my income. Last week, we rolled most of our trades to keep them safe and generated income.

We rolled these trades:
 
BAC 42/50 strangle to 41.5/47.5 strangle for 0.05 credit
AES 23/27 strangle to 21/165 strangle for 0.40 credit
multiple adjustments of SNOW spreads
DKNG 30/50 strangle to 25/35 strangle for 0.05 credit
TSN 72.5/85 strangle to 80/90 strangle for 0.40 credit
TSLA 1035/1040 put spread to 1025/1030 put spread for 0.05 credit
SPCE 2x 18p/ 3x 25c uneven strangle to 3x 13p/ 3x 18c strangle for 1.09 credit
OXY 30/40 strangle to 27/32 strangle for 0.04 debit
CROX 145/200 strangle to 140/185 strangle for 1.82 credit
BABA 105/145 strangle to 100/135 strangle for 0.35 credit
PMT 20 put to 20 put for 0.35 credit
KBE 54/60 strangle to 52/58 strangle for 5.14 credit
BA 170/200 strangle to 180/220 strangle for 3.00 credit
WEN 20/24 strangle to 19/23 strangle for 0.20 credit
MU 77.8/95 strangle to 72.5/95 strangle for 0.80 credit
BA 170/200 strangle to 170/225 strangle for 1.47 credit
AAPL 155/185 strangle to 140/175 strangle for 0.90 credit
BA 175/207.5 strangle to 170/200 strangle for 2.13 credit
BA 180/215 strangle to 170/200 strangle for 2.99 credit
TSN 75/90 strangle to 72.5/85 strangle for 0.63 credit
WBA 43/51 strangle to 42.5/47.5 strangle for 0.05 credit
DKNG 30/45 strangle to 25/45 strangle for 0.30 credit
and many other trades.
 

We closed a PPL strangle for 0.50 debit, the entire trade closed for 0.45 credit.
We also closed a CSCO strangle for 0.15 debit, the entire trade closed for 1.69 credit.
We closed BEPC strangle for 2.77 debit. The entire trade closed for 0.47 debit (a losing trade).
 

These adjustments delivered $1,054.00 of additional options income topping November at $4,577.00. Not the best month but not the worst one either. I expected November to be choppy but unfortunately, I was not very well prepared for it.
 

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

 
We have received $114.08 in dividends last week. Our portfolio currently yields 4.46% at $87,278.33 market value.

 
Our projected annual dividend income in 10 years is $21,999.61 but that projection is if we do absolutely nothing and let our positions grow on their own without adding new positions or reinvesting the dividends.

We are also set to receive a $4,320.18 annual dividend income. We are 19.64% of our 10 year goal of $21,999.61 dividend income.

 
Future Divi on YOC week 48
 

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 decreased from $126,058.32 to $122,486.39 last week. But on month to month our stock holding value increased from $121,107.63 to $122,486.39 value.

 
Stock holdings week 48
 

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 5.24% monthly ROI in November 2021, totaling a 63.77% ROI YTD. We again exceeded our 45% annual revenue selling options against dividend stocks target!

Our account grew by 324.25% beating our projections and the market.
 

Our options trading averaged $4,637.83 per month this year. If this trend continues, we are on track to make $55,654.00 trading options in 2021. As of today, we have made $55,654.00 trading options.
 

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 liquidated our RIFN position (for a loss) and used cash to accumulate our HFEA holdings (purchasing SPXL and TMF).

Here is a quick review of our HFEA strategy.

 

Accumulating Rules

 

Despite the rule below, I was still running low on buying power and I was wondering why. Then I saw it. Although I am limiting my options trading, I go on a shopping spree and use a lot of free BP buying stocks. That is not necessarily bad, but these purchases reduce my BP and when the market drops, my BP is depressed even more. I am buying more shares than what my options are generating. When I sell options and generate for example $100 dollars, I go and buy shares worth $200 (thank you margin!). That depletes my reserves. And this also was not my plan at the beginning!

Originally, my goal was to use options income only, so it is time to return to the roots.

Our rule is to buy shares of growth stocks using options income only and only when the BP is above the $4,000 November limit. In December 2021, we plan on increasing the limit to the $5,000 level.

Why such a rule? Up to today, I was scaling up my trades and portfolio. That resulted in rapid growth but also all our proceeds were constantly locked in the trades. If we want to live off of our dividends and options income, we cannot have them locked by new trades. We need to start accumulating “cash available to withdraw”. Therefore, I am shifting my trading to trade the same amount of contracts and invest only a certain excess of the accumulated cash.

Another reason, of course, is to have enough cash to buy opportunities when the market crashes or corrects. As is typical, Wall Street usually overreacts (stupidly) and I want to buy shares when the market is in panic. Like last week. the almost 3% sell-off provided a good opportunity but I have no available buying power!

 

Accumulating Dividend Growth Stocks

 

Last week, we also added FLMN shares 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 market suffered another wave of selling. The panic was once again fueled by Omicron panic, FED early tapering, and bad employment data (which in my view should be good for the market preventing FED from tapering). The market is driven by craziness, volatility, and lack of direction.
 

SPX 2021 1204

 
There are no catalysts that could be driving this market, earnings are done, and all is left is just freaks panicking. So the market is driven by mood and news. All we can rely on is technical levels. From that perspective, there are only two levels – the 50-day moving average, the 200-day moving average, and previous resistance that is now a support.

We breached the 50-day moving average.
We are in breach of the previous support but there is still a chance that the support will hold. If it holds, I expect the market to resume the uptrend.
If the support doesn’t hold, the market might go to the 200-day moving average.
 

SPX 2021 1204
 

When can we expect this market to crash? Watch earnings reports and estimates. When these change, the market will change. It has not happened yet but be open to the possibility of this changing.
 

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 48

 

Account Stocks holding

 
TW Account holdings week 48
 

Last week, S&P 500 grew 56.89% since we opened our portfolio while our portfolio grew 23.53%. On YTD basis, the S&P 500 grew 27.05% and our portfolio 16.55%.

The numbers above apply to our stock holdings only. Our overall account net-liq grew by 324.25% this year! This is thanks to options trading that generates income. It can be also seen how the options help lower our cost basis. Just compare the P&L in the regular (left) column with the P&L in the “Options adjusted” column. For example, our AES holding would be a loser as of today (down -9.37%), but we generated enough income (we can call it also a return of our invested capital) and that position is 128.10% up.
 

Stock holdings Growth YTD

 
TW Account holdings Growth YTD
 

I expect our stock holdings to start outperforming the market hopefully soon. The entire portfolio beats the market by far thanks to monetizing those positions.

Our 10-year goal is to grow this account to $1,000,000.00 value in ten years. We are in year two and we accomplished 8.73% of that goal.

Our 6-year goal is to reach $175,000 account value to be eligible for portfolio margin (PM) and today we accomplished 49.87% of that goal.

Our 2021 year goal is to grow this account to a $42,344.00. We already accomplished this goal.

 

Investing and Trading Report – Options Monthly Income

 
TW Options Income week 48
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Income week 48
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 48
 

We have accomplished our dividend income goal. We planned to make $1,071 of dividend income this year and we finished receiving $2,667.85. However, we accumulated enough shares to start making $4,320.18 a year.
 

TW Received vs Future Dividends week 48

 

Our account cumulative return

 

The chart below indicates our cumulative adjusted return.
 

TW cumulative return wk 48
 

TW win ratio wk 48
 

As of today, our account cumulative return is 37.48% (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!





One response to “2021 Week 48 investing and trading report”

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