The first week of February was a week of recovery. The stock market bounced from the lows and our investing and trading bounced up too. At the end of the week, we saw a pullback that had an impact on our stocks too, but overall, we performed well.
If the stock continues higher next week, we will see better gains. If it continues lower or even decides to re-test the lows, we will have to survive another wave of pain. I still have some cash left so, if the market goes bust, I will be buying cheap stocks.
Here is our investing and trading report:
| Account Value: | $106,749.40 | $476.81 | 0.45% |
| Options trading results | |||
| Options Premiums Received: | $5,555.00 | ||
| 01 January 2022 Options: | $8,885.00 | +8.36% | |
| 02 February 2022 Options: | $5,555.00 | +5.20% | |
| Options Premiums YTD: | $14,440.00 | +13.53% | |
| Dividend income results | |||
| Dividends Received: | $62.39 | ||
| 01 January 2022 Dividends: | $303.38 | ||
| 02 February 2022 Dividends: | $62.39 | ||
| Dividends YTD: | $365.77 | ||
| Portfolio metrics | |||
| Portfolio Yield: | 5.64% | ||
| Portfolio Dividend Growth: | 7.87% | ||
| Ann. Div Income & YOC in 10 yrs: | $37,021.90 | 24.75% | |
| Ann. Div Income & YOC in 20 yrs: | $388,799.31 | 259.91% | |
| Ann. Div Income & YOC in 25 yrs: | $2,110,909.42 | 1411.12% | |
| Ann. Div Income & YOC in 30 yrs: | $18,989,434.17 | 12,694.22% | |
| Portfolio Alpha: | 8.37% | ||
| Portfolio Weighted Beta: | 0.46 | ||
| CAGR: | 533.57% | ||
| AROC: | 13.78% | ||
| TROC: | 11.37% | ||
| Our 2022 Goal | |||
| 2022 Dividend Goal: | $4,800.00 | 7.62% | In Progress |
| 2022 Portfolio Value Goal: | $151,638.03 | 70.40% | In Progress |
| 6-year Portfolio Value Goal: | $175,000.00 | 61.00% | In Progress |
| 10-year Portfolio Value Goal: | $1,000,000.00 | 10.67% | In Progress |
Dividend Investing and Trading Report
Last week we have received $62.39 in dividends bringing February’s dividend income to $62.39.
We bought the following dividend stocks:
- 4 shares or BAC @ $46.76
Here you can see our dividend income per stock holding:
Growth stocks Investing and Trading Report
Last week we didn’t buy any growth stocks.
Options Investing and Trading Report
Last week we rolled our strangle trades to keep our account safe. That raised cash and buying power.
These adjustments delivered income of $5,555.00 bringing February total to $5,555.00.
We were actively trading our SPX strategy that delivered $550.00 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 $62.39 in dividends last week. Our portfolio currently yields 5.64% at $106,749.40 market value.
Our projected annual dividend income in 10 years is $37,021.90 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 $5,777.94 annual dividend income ($481.49 monthly income). We are 15.61% of our 10 year goal of $37,021.90 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 increased from $152,365.36 to $155,197.02 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.
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 5.20% monthly ROI in February 2022, totaling a 13.53% ROI YTD. We hope that in 2022 we exceed our 45% annual revenue selling options against dividend stocks target!
Our entire account is up 2.01%.
Our options trading averaged $7,220.00 per month this year. If this trend continues, we are on track to make $86,640.00 trading options in 2022. As of today, we have made $14,440.00 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.
The market seems to be presenting a good opportunity to adjust one old SPX trade. It will be a debit trade and it will consume quite a bit of the buying power. I might take it. The trade has a substantial profit on the call side and I am thinking to take the call side off and convert it into a put side. I will see what happens next week.
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 did find support at the $4315 level and bounced. It even went above the 200-day MA, closed above it but peaked at 4600 level. Then the bulls lost steam and a shooting star occurred. The market reversed, using Facebook’s 26% stock crash as a catalyst. The stock dropped but it was bought up intraday – twice. That is a good sign, although a weak one.
Then Amazon reported earnings and that pushed the stock up 13%+. And the market went up too. But then it sold off on strong job report data. Good news is bad news. Wall Street got spooked by good data fearing FED might be tapering and raising the interest rates. Like it was planning not to.
The amount of bearishness out there is outstanding. The bearish mood, fear, and negativity are far worse than in the 2007-2008 and 2020 pandemic crash. Though, there is no fundamental support for this bearishness. What does it tell you? The market is typically designed to punish. If there is too much bullishness, it tends to punish bulls. If there are too many bears, it punishes bears. We have too many bears out there.
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 55.58% since we opened our portfolio while our portfolio grew 21.79%. On YTD basis, the S&P 500 fell -9.18% and our portfolio -7.98%. 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 2.01% this year thanks to our options strategies that generated enough income to stay up a bit.
Stock holdings Growth YTD
Our stock holdings are starting to outperform the market. Hopefully, this trend will stay and we will be doing better than S&P 500 constantly.
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 10.67% 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 61.00% of that goal.
Our 2022 year goal is to grow this account to a $151,638.03. and today we accomplished 70.40% of this goal.
Investing and Trading Report – Options Monthly Income
Investing and Trading Report – Options Annual Income
Our dividend goal and future dividends
We planned to make $4,800.00 in dividend income in 2022. As of today, we received $365.77. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $5,777.94 a year.
Our account cumulative return
The chart below indicates our cumulative adjusted return since we started tracking this metric.
Here is the cumulative return for the year 2022:
Our win ratio overall:
Our win ratio for 2022:
As of today, our account overall cumulative return is 32.77% (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 -10.06%.
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