Weekly Newsletter   Challenge account   Weekly Newsletter   


2022 Week 04 investing and trading report

January is over and it was a difficult month for our investing and trading. Our account got slammed a lot but we were not taking any losses. The net-liq was going down as our stock positions were losing value and our options were gaining value due to increased volatility.

We closed some of our positions for a small loss, some for a profit, and some for breakeven. Nevertheless, rebalancing our positions helped us to raise cash, and now, when the market is near the bottom, we are buying back our positions and opening new stock holdings. When the market fully recovers or starts recovering, I expect our account to shoot up too. Even a side-moving market will increase our account.
 

Here is our investing and trading report:

 

Account Value: $106,272.59 $8,457.30 8.65%
Options trading results
Options Premiums Received: $2,764.00    
01 January 2022 Options: $8,470.00 +7.97%  
02 February 2022 Options: $0.00 +0.0%  
Options Premiums YTD: $8,470.00 +7.97%  
Dividend income results
Dividends Received: $0.00    
01 January 2022 Dividends: $232.02    
02 February 2022 Dividends: $0.00    
Dividends YTD: $232.02    
Portfolio metrics
Portfolio Yield: 5.65%    
Portfolio Dividend Growth: 7.87%    
Ann. Div Income & YOC in 10 yrs: $37,116.91 24.84%  
Ann. Div Income & YOC in 20 yrs: $391,090.70 261.77%  
Ann. Div Income & YOC in 25 yrs: $2,128,881.60 1424.91%  
Ann. Div Income & YOC in 30 yrs: $19,216,969.66 12,862.40%  
Portfolio Alpha: 2.76%    
Portfolio Weighted Beta: 0.46    
CAGR: 540.55%    
AROC: 6.44%    
TROC: 11.72%    
Our 2022 Goal
2022 Dividend Goal: $4,800.00 4.83% In Progress
2022 Portfolio Value Goal: $151,638.03 70.08% In Progress
6-year Portfolio Value Goal: $175,000.00 60.73% In Progress
10-year Portfolio Value Goal: $1,000,000.00 10.63% In Progress

 

Dividend Investing and Trading Report

 
Last week we have received $0.00 in dividends bringing January’s dividend income to $232.02.

We bought the following dividend stocks:

  • 1 share of MSFT @ $291.56
  • 100 shares of ARCC @ $21.52
  • 10 shares or IEP @ $52.77
  • 23 shares or RYLD @ $22.30
  • 45 shares or GAIN @ $15.55
  • 2 shares or BAC @ $45.38

Here you can see our dividend income per stock holding:

 
Annual Dividend Payout week 04

 

Growth stocks Investing and Trading Report

 

Last week we bought the following growth stocks:

  • 10 shares of NFLX @ $384.64
  • 8 shares of SNOW @ $253.74
  • 5 shares of TSLA @ $922.57
  • 5 shares of AAPL @ $162.08
  • 1 share of AMZN @ $2,804.87

The selloff was a gift for us to buy good quality growth stocks for a cheap price. And if the selling continues in the coming weeks, we will be adding more shares.

 

Options Investing and Trading Report

 
Last week we rolled our strangle trades to keep our account safe. That raised cash and buying power. Unfortunately, it didn’t help our net-liq much. We still went down.

These adjustments delivered our January income by $2,764.00 bringing January total to $8,470.00.

Once those trades are over, the net-liq will be released.
 

We were actively trading our SPX strategy that delivered $192.00 weekly income.

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 $0.00 in dividends last week. Our portfolio currently yields 4.83% at $106,272.59 market value.

 
Our projected annual dividend income in 10 years is $37,116.91 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 $5,774.58 annual dividend income ($481.21 monthly income). We are 15.56% of our 10 year goal of $37,116.91 dividend income.

 
Future Divi on YOC week 04
 

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 $132,015.51 to $152,365.36 last week.

In 2022 we plan on accumulating dividend stocks, monetizing these positions, HFEA strategy, and SPX trading. We plan on raising more of our holdings to 100 shares so we can start selling covered calls. We continued rebalancing our options trades that released buying power significantly. That allowed us to start buying shares of our interest again.

 
Stock holdings week 04
 

Our goal is to accumulate 100 shares of dividend growth stocks we liked and then start selling covered calls or strangles around those positions. We also planed on reinvesting all dividends back to those holdings.
 

Investing and trading ROI

 

Our options trading delivered a 7.97% monthly ROI in January 2022, totaling a 7.97% ROI YTD. We hope that in 2022 we exceed our 45% annual revenue selling options against dividend stocks target!

Our entire account is up 1.56% outperforming our projections and the market.
 

Our options trading averaged $8,470.00 per month this year. If this trend continues, we are on track to make $101,640.00 trading options in 2022. As of today, we have made $8,470.00 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.

We however traded our SPX put credit spread strategy which you will be able to review in my next report. The SPX strategy held well so far, and our signals kept us away from opening new trades.

 

Market Outlook

 

The stock market appears to be finding its support at the $4315 level. If that level holds bulls may step in and push this market higher. We have a few obstacles to overcome – a 200-day MA and previous support, now resistance.

 
SPX prediction
 

If we bounce off both we may go lower and retest the lows, or even make new lows. If we break up and above we may see the rally recovery. But, as of now, we must wait to find out.

 

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 04

 

Account Stocks holding

 
TW Account holdings week 04
 

Last week, S&P 500 grew 53.21% since we opened our portfolio while our portfolio grew 18.40%. On YTD basis, the S&P 500 fell -11.56% and our portfolio -11.38%. This clearly indicates that our stock holdings performed better than the market.

The numbers above apply to our stock holdings only. Our overall account net-liq is up by 1.56% this year thanks to our options strategies that generated enough income to stay up a bit.
 

Stock holdings Growth YTD

 
TW Account holdings Growth YTD
 

I expect our stock holdings to start outperforming the market hopefully soon.
 

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 10.63% 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 60.73% of that goal.
 

Our 2022 year goal is to grow this account to a $151,638.03. and today we accomplished 70.08% of this goal.

 

Investing and Trading Report – Options Monthly Income

 
TW Options Income week 04
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Income week 04
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 04
 

We planned to make $4,800.00 in dividend income in 2022. As of today, we received $232.02. This is in line with our projected dividend goal for January 2022. We also accumulated enough shares to start making $5,774.58 a year.
 

TW Received vs Future Dividends week 04

 

Our account cumulative return

 

The chart below indicates our cumulative adjusted return since we started tracking this metric.
 

TW cumulative (overall) return wk 04
 

Here is the cumulative return for the year 2022:
 

TW cumulative (2022) return wk 04
 

Our win ratio overall:
 

TW win ratio (overall) wk 04
 

Our win ratio for 2022:
 

TW win ratio (2022) wk 04
 

As of today, our account overall cumulative return is 32.18% (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.) and our 2022 cumulative return is -10.46%.

I have a favor to ask. If you like this report, please, hit the like like button button so I know that there is enough audience that like this content. Also if there is something you want to know or you want me to change this report to a different format, let me know in the comments section.

 
 





Leave a Reply

Your email address will not be published.