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2021 Week 9 investing and trading report

Another week and the first week of March 2021 is gone and our investing and trading report can be closed in the books, again. This week was painful as the selling continued pushing pressure on our cash and net-liquidation value. We had to start releasing cash from our ICSH fund to avoid margin calls. Having enough cash saved was mind relieving. We opened more trades this week but I must admit, I regretted that. I should have remained in cash and buy more shares of stocks such as APPL. However, our options income exceeded my expectations. We made more money than I expected but due to the market weakness, our net liquidation value didn’t move. The net-liq didn’t move much despite selling out there.

 

Here is our investing and trading report:

 

Account Value: $31,593.32 -$94.31 -0.30%
Options trading results
Options Premiums Received: $1,421.00
01 January 2021 Options: $4,209.00 +16.65%
02 February 2021 Options: $4,884.00 +15.41%
03 March 2021 Options: $1,421.00 +4.50%
Options Premiums YTD: $10,514.00 +33.28%
Dividend income results
Dividends Received: $6.65
01 January 2021 Dividends: $53.04
02 February 2021 Dividends: $63.00
03 March 2021 Dividends: $6.65
Dividends YTD: $122.69
Portfolio metrics
Portfolio Yield: 3.58%
Portfolio Dividend Growth: 7.26%
Ann. Div Income & YOC in 10 yrs: $3,202.52 11.34%
Ann. Div Income & YOC in 20 yrs: $16,885.37 59.81%
Ann. Div Income & YOC in 25 yrs: $52,191.71 184.86%
Ann. Div Income & YOC in 30 yrs: $216,348.10 766.30%
Portfolio Alpha: 26.67%
Portfolio Weighted Beta: 0.62
CAGR: 714.01%
AROC: 26.52%
TROC: 29.59%
Our 2021 Goal
2021 Dividend Goal: $1,071.42 11.45%
2021 Portfolio Value Goal: $42,344.06 74.61%

 

We received $1,421.00 in premiums trading options against our holdings this week. For the entire March 2021, we received $1,421.00 premiums. We increased our stock holdings from $29,034.92 to $30,044.95 of the current, non-adjusted market value. All our income was reinvested back into stocks.
 

Open trades

 

Investing and trading report
 

The table above shows all our open trades and expirations. It is just a simplified tracking and buying power reduction. My goal is to trade a set amount of equity strangles in what I call perpetual strangle trading. It is nothing fancy. I just have a list of equities I like to trade options around them, I like to eventually own and I accumulate these stocks. Once a trade expires (or nears expiration) I re-open the trade or roll it into the next expiration (mostly trades that a stock is near the short strike and there is a risk of getting in the money).

These trades alone block approximately $20,332.53 of buying power, an increase of $2,032.53 and 11.11%. I have not tracked this metric of our portfolio before but I will start tracking it to see if my trading is scaling up or down and how it impacts the net-liq of our portfolio and eventually, how it may affect our portfolio during the stock market downturn.

 

Investing and trading ROI

 

Our options trading delivered a 4.50% monthly ROI, totaling a 33.28% ROI.

Our account decreased to 53.57% YTD growth. We are still happy with this result.
 

Our options trading averaged $3,504.67 this year. If this trend continues, we are on track to make $42,056.00 trading options in 2021.
 

We are still on track to complete goals in our portfolio. We made slight adjustments and we are providing our comments to our goals and tasks we set up in the week 6 report:
 

Old SPX trades repair

We are still on track to attempt fixing our SPX trades that still block approximately $12,000 in our buying power. We set a buy-back order for deep OTM put spreads for 0.10 debit. Once these get closed, we will roll the deep ITM higher and sell new OTM put spreads to offset the cost. It will be a slow process but I believe, it will be worth releasing an additional $12,000 in cash. As I said last week, we will be rolling these trades only if it will be resulting in credit rolls or a wash. If rolling for a credit or a small debit (no more than $10 or $15) will not be possible, we will let those trades go. The recent sell-off in the market would help with rolling these trades although that same selloff is putting pressure on my cash that needs to be used to roll the trades.

Accumulating Growth Stocks

 

I am still interested in some growth stocks that would boost my portfolio in the long run. I have created a screener in Finviz.com to help select stocks that are more solid investments and growth potential rather than the speculative penny stocks in overhyped industries such as “electric vehicles”. The screener returns stocks that are considered by analysts, institutional investors, and insiders as a great investment and that these stocks are accumulated by these investors. The stocks also create revenue and growth and increase that growth.

Stocks from this screener we will be accumulating for the long run are currently Cutera, Inc. (CUTR) and The Blackstone Group Inc. (BX). More stocks like that may be added in the future. As long as these stocks appear in the screener results, I will be accumulating them. Once I reach 100 shares of each, I will start selling covered calls.

Here is a picture of the screener and all settings if you want to follow it and try it for yourself.

 
Finviz Screener
 

Accumulating Dividend Growth Stocks

Buying high-quality dividend stocks is our core strategy in our fund. And we will continue to do so and at a faster pace. Last week, we started accumulating Aflac (AFL) stock to reach 100 shares. As of today, we own 46 shares

We want to accumulate 100 shares of each stock in our watchlist or list of stocks we want to own. This lot of shares is not, however, the end number. Once we are fully invested (own all stocks we want to own), then we will start adding on top of those 100 shares.

Our goal is to not only reach 100 shares of high-quality dividend stocks but also create a weekly dividend income from these stocks All it takes to create a weekly dividend income is to buy 12 stocks to spread the income for every week. I created this dividend calendar and track the stocks I want to buy to get this goal done fast.
 

Weekly dividends income calendar
 

However, I am also interested in adding some high-yield, yet still safe, dividend earners to further boost our dividend income. I found a few good stocks and closed-end funds, candidates I believe are worth accumulating. Every month I will be posting these stocks, accumulation progress, or stock removal from the portfolio. These stocks or funds may be riskier than the aristocrats and I plan on monitoring them carefully. When the stocks no longer meet my criteria and/or underperform, I will remove them from our portfolio. My first list for March accumulation can be found here.

Trading options

We will continue trading options around the stocks we own or plan to own. I call it monetizing our positions. It has a threefold benefit. It lowers our cost basis (at some point we will own all our shares for free), it covers our call sides of each trade and generates an additional income on top of the dividends. And that income is significant as you can see from our report at the top of this post.

Our fund in charts:

TW Account Net-Liq week 8
 

TW Account holdings week 9
 

The table above shows our current holdings and gains on those holdings. Adjusted columns indicate how options help to boost (or ruin) our stock holdings appreciation, or in other words, lowering the cost basis. Without options, our holdings would be up 6.42% with options, our holdings are up 12.23% (from inception on 4/1/2019). The SPX is up 32.81% since inception. Our stock holdings underperform the overall market since the inception of the fund (up only 12.23% on a cumulative basis). However, this week, our adjusted stock holdings significantly beat the market. The market gained 2.97% YTD, our portfolio adjusted stock holdings grew by 5.25% YTD (note this includes stock holdings adjusted by options trading, not the entire portfolio).
 

TW Account holdings Growth YTD
 

TW Options Income week 9
 

TW Options Annual Income week 9
 

TW Received vs Projected Dividends week 9
 

We will continue trading options and accumulating dividend-growth stock next week and report our results on Saturday next week. Until then, good luck and good trading!





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