December is almost over. The entire year 2021 is almost over. Despite extreme volatility, FED, inflation, fear, I must say, 2021 was an exceptional year for me. This is almost the last investing and trading report this year. I was reporting my progress diligently every week to show how I was doing. And the results exceeded expectations.
Our Net-Liq decreased form last week jump because of the market selloff up by +13.24%), our options income increased in December by +6.24% and our dividend income is in line with our monthly goal.
What are my expectations for the rest of the year? I still think this market will reach $4,800 by the end of the year although my conviction is lesser than before. FED announcing tapering and possible interest rates hike next year can spark a repetition of Christmas 2018 selling. Although, if that was the case, we would be already down significantly and not a measly 2%.
Here is our investing and trading report:
| Account Value: | $98,835.00 | -$3,685.41 | -3.59% |
| Options trading results | |||
| Options Premiums Received: | $2,265.00 | ||
| 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% | |
| 12 December 2021 Options: | $6,169.00 | +6.24% | |
| Options Premiums YTD: | $59,528.00 | +60.23% | |
| Dividend income results | |||
| Dividends Received: | $40.50 | ||
| 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 | ||
| 12 December 2021 Dividends: | $136.23 | ||
| Dividends YTD: | $2,721.56 | ||
| Portfolio metrics | |||
| Portfolio Yield: | 4.42% | ||
| Portfolio Dividend Growth: | 8.80% | ||
| Ann. Div Income & YOC in 10 yrs: | $22,577.31 | 18.65% | |
| Ann. Div Income & YOC in 20 yrs: | $219,926.28 | 181.64% | |
| Ann. Div Income & YOC in 25 yrs: | $1,171,829.90 | 967.84% | |
| Ann. Div Income & YOC in 30 yrs: | $10,807,199.34 | 8,925.95% | |
| Portfolio Alpha: | 53.92% | ||
| Portfolio Weighted Beta: | 0.59 | ||
| CAGR: | 574.80% | ||
| AROC: | 62.16% | ||
| TROC: | 13.13% | ||
| Our 2021 Goal | |||
| 2021 Dividend Goal: | $1,071.42 | 254.01% | Accomplished |
| 2021 Portfolio Value Goal: | $42,344.06 | 233.41% | Accomplished |
| 6-year Portfolio Value Goal: | $175,000.00 | 56.48% | |
| 10-year Portfolio Value Goal: | $1,000,000.00 | 9.88% |
Dividend Investing and Trading Report
Last week we have received $40.50 in dividends bringing December’s dividend income to $136.23. We bought 10 shares of RYLD ETF for dividend income. I will be accumulating this ETF more often now as I wish to create a dividend income from this fund to cover my mortgage payments. So, I will be accumulating and reinvesting dividends. Once my dividend income exceeds the mortgage payments, I plan on withdrawing the dividend. Then I shift back to accumulating other stocks.
Here you can see our dividend income per stock holding:
Growth stocks Investing and Trading Report
Last week we continued accumulating our position in the HFEA strategy. We kept buying SPXL and TMF shares to reach our target allocation. We are only a few shares short of the target and I think we will finish accumulating the shares next week. Other than that, we didn’t buy any other growth stocks positions.
Options Investing and Trading Report
The stock market recovered the previous selloff after FED announced its tapering and interest rates hike. The announcement was taken as a relief and the market rallied. Nasdaq went up almost 3% that day. We had to adjust a few strangle positions to the upside.
Then, the market turned lower as investors (possibly the same investors who pushed Nasdaq to 3% gain) started selling the same stocks, and the rest of the week we had a significant selloff. We had to adjust those same strangles back down.
These adjustments delivered $2,265.00 of additional options income bringing December at $6,169.00.
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 $13.21 in dividends last week. Our portfolio currently yields 4.41% at $98,835.00 market value.
Our projected annual dividend income in 10 years is $22,577.31 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 $4,432.93 annual dividend income. We are 19.63% of our 10 year goal of $22,577.31 dividend income.
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 $129,791.56 to $129,178.85 last week. On month to month our stock holding value increased from $121,107.63 to $129,178.85 value.
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 6.24% monthly ROI in November 2021, totaling a 60.23% ROI YTD. We again exceeded our 45% annual revenue selling options against dividend stocks target!
Our account grew by 380.43% beating our projections and the market.
Our options trading averaged $4,960.67 per month this year. If this trend continues, we are on track to make $59,528.00 trading options in 2021. As of today, we have made $59,528.00 trading options.
Old SPX trades repair
This week, we didn’t adjust our old SPX trades. Our goal is to reach a level where 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.
Market Outlook
We are still bullish and we think that this market will rally and reaches $4,800 by the year-end. Although, this may be derailed by Wall Street still panicking over the FED’s tapering and interest hike. We have to wait to see and trade cautiously.
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
Account Stocks holding
Last week, S&P 500 grew 59.73% since we opened our portfolio while our portfolio grew 25.97%. On YTD basis, the S&P 500 grew 29.89% and our portfolio 18.99%.
The numbers above apply to our stock holdings only. Our overall account net-liq grew by 380.43% 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 -8.11%), but we generated enough income (we can call it also a return of our invested capital) and that position is 131.27% up.
Stock 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 9.88% 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 56.48% 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
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 $2,721.56. However, we accumulated enough shares to start making $4,432.93 a year.
Also, it is amazing to see, that on monthly basis, we received $53 in dividends and grew our account and now we are receiving $400 in dividends.
Our account cumulative return
The chart below indicates our cumulative adjusted return.
As of today, our account cumulative return is 47.78% (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.).
We will report our next week’s results next Saturday. Until then, good luck and good trading!
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