Is the market finally turning around so that our trading and investing can improve? It was a disaster so far. I constantly battle with buying power and it makes me very angry. As I mentioned before, I have $60,000 in cash but constantly no buying power. Here is a track of my net-liquidating value, buying power, and cash:
I understand that the volatility is still elevated and that puts pressure on the stocks in my portfolio as well as options trades but I don’t understand why my net-liq is $80k, cash is $60k, and my stocks market value is $132k and yet I do not have the cash to trade! I asked my broker for some explanation and they were clueless.
This makes me constantly adjust my options trades to keep my buying power positive. And this is extremely frustrating as well as costly as I no longer can adjust for credit but must do so for debit.
These debit trades cost me another -$703.00 last week. Our net-liq value went up by +7.52% last week and overall account is down -20.02% YTD. I hope, that when the market reverses and starts trading up again, this will change.
Here is our investing and trading report:
| Account Value: | $83,696.07 | +$6,296.67 | +7.52% |
| Options trading results | |||
| Options Premiums Received: | -$703.00 | ||
| 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: | $1,047.00 | +1.19% | |
| 05 May 2022 Options: | -$7,529.00 | -8.82% | |
| Options Premiums YTD: | $10,750.00 | +12.84% | |
| Dividend income results | |||
| Dividends Received: | $0.00 | ||
| 01 January 2022 Dividends: | $303.38 | ||
| 02 February 2022 Dividends: | $732.81 | ||
| 03 March 2022 Dividends: | $393.74 | ||
| 04 April 2022 Dividends: | $337.31 | ||
| 05 May 2022 Dividends: | $220.20 | ||
| Dividends YTD: | $1,987.44 | ||
| Portfolio metrics | |||
| Portfolio Yield: | 5.58% | ||
| Portfolio Dividend Growth: | 11.61% | ||
| Ann. Div Income & YOC in 10 yrs: | $59,940.92 | 39.24% | |
| Ann. Div Income & YOC in 20 yrs: | $2,205,576.56 | 1,443.96% | |
| Ann. Div Income & YOC in 25 yrs: | $43,885,453.67 | 28,731.12% | |
| Ann. Div Income & YOC in 30 yrs: | $3,019,638,826.54 | 1,976,910.41% | |
| Portfolio Alpha: | 6.78% | ||
| Sharpe Ratio: | 3.04 | EXCELLENT | |
| Portfolio Weighted Beta: | 0.56 | ||
| CAGR: | 389.97% | ||
| AROC: | 12.43% | ||
| TROC: | 14.44% | ||
| Our 2022 Goal | |||
| 2022 Dividend Goal: | $4,800.00 | 41.41% | In Progress |
| 2022 Portfolio Value Goal: | $151,638.03 | 55.19% | In Progress |
| 6-year Portfolio Value Goal: | $175,000.00 | 47.83% | In Progress |
| 10-year Portfolio Value Goal: | $1,000,000.00 | 8.37% | In Progress |
Dividend Investing and Trading Report
Last week we have received $0.00 in dividends bringing our May’s dividend income at $220.20. That is well below my expectations. Maybe, there will be more payments coming by the end of the month next week (2 days?) but I doubt it.
Last week, we bought these dividend growth stocks:
– 20 shares of TRIN @ $15.22
– 3 shares of BAC @ $35.56
I wish I could buy more stocks but my buying power is so depressed that I have to wait for my broker to start releasing the margin and my cash. It should start happening shortly.
Here you can see our dividend income per stock holding:
Growth stocks Investing and Trading Report
Last week we bought the following growth stocks and funds:
- 2 share of SPXL @ $76.77
I keep buying SPXL when it is very undervalued. My reason is that it should grow faster than the market when the market finally reverses and goes up. And I will keep buying when the price of the fund is under my cost basis. I will stop buying when the price gets above my cost basis, and when the gains reach 50% I will start trimming the position. -
100 shares of SNOW @ $285.00 (I was assigned to these shares but I do not have cash to cover the purchase. Fortunately, this was a spread so next week I will assign my long put to sell the shares (or sell the shares and the put at the same time).
-
10 shares of TQQQ @ $27.72
I have similar reasons for buying the TQQQ position. I think it is time to start accumulating growth NASDAQ stocks and I decided to use TQQQ leveraged ETF to grow up faster than the index.
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 a loss of -$703.00 making our May options income -$7,529.00.
We were actively trading our SPX strategy that delivered $90.00 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 $0.00 in dividends last week. Our portfolio currently yields 5.58% at $83,696.07 market value.
Our projected annual dividend income in 10 years is $59,940.92 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 $5,917.86 annual dividend income ($493.16 monthly income). We are 9.87% of our 10 year goal of $59,940.92 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 $132,071.97 to $139,780.89 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 -9.00% monthly ROI in May 2022, totaling a 12.84% 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 way behind this goal and it seems we will not achieve it at all.
Our entire account is down -20.02%.
Our options trading averaged $2,150.00 per month this year. If this trend continues, we are on track to make $25,800.00 trading options in 2022. As of today, we have made $10,750.00 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 aggressive trades.
Investing and trading report in charts
Account Net-Liq
Account Stocks holding
Last week, S&P 500 grew 43.75% since we opened our portfolio while our portfolio grew 5.99%. On YTD basis, the S&P 500 fell -21.02% and our portfolio -23.78%. We are underperforming the market. When the market was dropping, our losses were smaller than the market, now when the market is going up, our portfolio goes up slower than the market.
The numbers above apply to our stock holdings only. Our overall account net-liq is down by -20.02% this year.
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 8.37% 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 47.83% of that goal.
Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 55.19% 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 $1,987.44. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $5,917.86 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 -24.88% (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 -49.11%. That means we erased the entire 2021 revenue. 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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