Once again I was surprised with our options trading results this week. I expected a positive return but only around $1,000 dollars. So receiving $3,108 in options premiums was a nice surprise that offset the horrible account balance results. Our net-liq dropped significantly again and we pretty much erased all last year’s gains. But the loss is temporary! We have not sold any equity for a loss and we are seeing losses in options due to rolling the options. When you roll the option, you close the old trade (typically for a loss) and open a new trade that offsets the loss. The loss is a realized one, the new credit is unrealized. Once the market stabilizes and we start seeing our options trades expiring, the net-liq will skyrocket. We just have to wait out this terrible market and keep rolling.
Here is our investing and trading report:
| Account Value: | $98,050.47 | -$4,395.61 | -4.48% |
| Options trading results | |||
| Options Premiums Received: | $3,108.00 | ||
| 01 January 2022 Options: | $8,885.00 | +8.36% | |
| 02 February 2022 Options: | $10,009.00 | +10.34% | |
| 03 March 2022 Options: | -$1,662.00 | -1.47% | |
| 04 April 2022 Options: | $3,870.00 | +3.95% | |
| Options Premiums YTD: | $21,102.00 | +21.52% | |
| Dividend income results | |||
| Dividends Received: | $50.22 | ||
| 01 January 2022 Dividends: | $303.38 | ||
| 02 February 2022 Dividends: | $732.81 | ||
| 03 March 2022 Dividends: | $393.74 | ||
| 04 April 2022 Dividends: | $111.05 | ||
| Dividends YTD: | $1,540.98 | ||
| Portfolio metrics | |||
| Portfolio Yield: | 5.17% | ||
| Portfolio Dividend Growth: | 11.61% | ||
| Ann. Div Income & YOC in 10 yrs: | $52,906.28 | 34.28% | |
| Ann. Div Income & YOC in 20 yrs: | $1,655,646.58 | 1,072.70% | |
| Ann. Div Income & YOC in 25 yrs: | $28,562,517.66 | 18,505.77% | |
| Ann. Div Income & YOC in 30 yrs: | $1,619,647,588.25 | 1,049,376.28% | |
| Portfolio Alpha: | 16.27% | ||
| Sharpe Ratio: | 6.93 | EXCELLENT | |
| Portfolio Weighted Beta: | 0.47 | ||
| CAGR: | 442.43% | ||
| AROC: | 16.45% | ||
| TROC: | 9.03% | ||
| Our 2022 Goal | |||
| 2022 Dividend Goal: | $4,800.00 | 32.10% | In Progress |
| 2022 Portfolio Value Goal: | $151,638.03 | 64.66% | In Progress |
| 6-year Portfolio Value Goal: | $175,000.00 | 56.03% | In Progress |
| 10-year Portfolio Value Goal: | $1,000,000.00 | 9.81% | In Progress |
Dividend Investing and Trading Report
Last week we have received $50.22 in dividends bringing our April’s dividend income at $111.05.
Last week, we have not purchased any dividend stock.
Here you can see our dividend income per stock holding:
Growth stocks Investing and Trading Report
Last week, we have not purchased any growth stocks.
However, I was adding the ICSH fund to increase reserves. Last year, I built nice reserves in this cash equivalent fund but then I thought that holding cash in that account is a waste of resources and I liquidated the holdings and invested it into dividend-paying stocks. That is not necessarily a bad thing but I have no cash reserves that I can tap into. The cash in the account is tied to the current margin maintenance and cannot be used. This was a lesson learned. Now that the market tanked, I struggle to keep the account buying power positive. If I had the reserves intact, I could be now selling the ICSH position to release funds instead of hastily rolling the trades around to stay afloat. So, I am slowly rebuilding those reserves to the previously determined level.
Options Investing and Trading Report
Last week we rolled our strangle trades to keep our account safe. Some of those rolls could have been avoided if I had enough cash reserves.
However, these adjustments delivered income of $3,108.00 making our April options income $3,870.00.
We were actively trading our SPX strategy that delivered $1,940.00 gain.
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 $50.22 in dividends last week. Our portfolio currently yields 5.17% at $98,050.47 market value.
Our projected annual dividend income in 10 years is $52,906.28 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 $5,941.07 annual dividend income ($495.09 monthly income). We are 11.23% of our 10 year goal of $52,906.28 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 $156,795.57 to $148,744.46 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 planned on reinvesting all dividends back into those holdings.
Investing and trading ROI
Our options trading delivered a 3.95% monthly ROI in April 2022, totaling a 21.52% ROI YTD. We hope that in 2022 we exceed our 45% annual revenue selling options against dividend stocks target, although as of today, we are getting behind this goal.
Our entire account is down -6.30%.
Our options trading averaged $5,275.50 per month this year. If this trend continues, we are on track to make $63,306.00 trading options in 2022. As of today, we have made $21,102.00 trading options.
Old SPX trades repair
Last week we have not adjusted any of our old trades. The market is playing with me. When all the ods looked good and I had a chance to get rid of one bad trade, the market tanked ruining my chance to improve the position. Now I am back at the beginning of my attempt to fix the old trade.
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 what we expected it would do. It bounced last week and then wasn’t able to break above the strong resistance at 200-day MA. Then Powell spoke and sent the market to the abyss. Currently, it is on the track to retest the February 24th lows which is what I think is going to happen. On Monday, we may see a flush out and then possible bounce but overall we will be reversing and heading lower.
If you want to find out more about the market outlook, 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 47.67% since we opened our portfolio while our portfolio grew 13.25%. On YTD basis, the S&P 500 fell -17.09% and our portfolio -16.53%. We are outperforming the market although by a small percentage point.
The numbers above apply to our stock holdings only. Our overall account net-liq is down by -6.30% 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 9.81% 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 56.03% of that goal.
Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 64.66% 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 $1,540.98. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $5,941.07 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 -1.09% (note, data in this section are since March 13, 2021, only as that is the date we started tracking these metrics). Our 2022 cumulative return is -33.00%. That means we erased the entire 2021 revenue as of today. That is a horrible result. But I am optimistic. As I mentioned above, the results are temporary as we are rolling our trades and these rolls cause realized losses while we have open unrealized gains. Once the open trades end (when this horrible market finally calms down), the gains will offset the losses.
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