Despite the market selloff of more than 20% this year and my account investments decline, the year 2022 is starting to turn into a good year for our investing and trading. Yes, overall, we are still down more than 30% this year, but We were able to navigate our options trades to stay positive, buy more shares of high-quality dividend-paying stocks and position our trades that were in bad shape thanks to the market crash to be in relatively good shape. We now have plenty of open trades that are likely to expire out of the money for a full profit.
Yes, all these adjustments were at a significant cost (most of the trades had to be done for a debit) that ate into our profits, but overall, our options trading brought in a significant income offsetting that debit and in fact, growing our account although it is not yet visible. Over time, these trades will be expiring and all unrealized gains will become realized.
Another positive note could be that I am once again on the track to creating cash reserves (invested in an ICSH fund) that should help us to get through this unruly market safely.
I still struggle with our buying power as the broker is pretty much killing my margin. But if the market finally found its bottom (which still may not necessarily mean that we will start a new rally here), we should see a significant improvement.
Our trading delivered +$979.00 premiums last week ending July 2022 at +$3,619.00 (+4.95%) options income. Our net-liq value increased by +3.47% last week to $73,099.41 value, and our overall account is down -30.15% YTD.
Here is our investing and trading report:
| Account Value: | $73,099.41 | +$2,536.78 | +3.47% |
| Options trading results | |||
| Options Premiums Received: | +$979.00 | ||
| 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: | +$8,604.00 | +11.32% | |
| 06 June 2022 Options: | +$9,691.00 | +13.73% | |
| 07 July 2022 Options: | +$3,619.00 | +4.95% | |
| Options Premiums YTD: | $40,193.00 | +54.98% | |
| Dividend income results | |||
| Dividends Received: | $36.50 | ||
| 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: | $343.99 | ||
| 06 June 2022 Dividends: | $445.80 | ||
| 07 July 2022 Dividends: | $63.60 | ||
| Dividends YTD: | $2,620.63 | ||
| Portfolio Equity | |||
| Portfolio Equity: | $141,593.41 | +$6,677.27 | +4.95% |
| Portfolio metrics | |||
| Portfolio Yield: | 5.57% | ||
| Portfolio Dividend Growth: | 11.83% | ||
| Ann. Div Income & YOC in 10 yrs: | $65,085.00 | 40.33% | |
| Ann. Div Income & YOC in 20 yrs: | $2,608,991.36 | 1,616.52% | |
| Ann. Div Income & YOC in 25 yrs: | $57,076,404.95 | 35,364.40% | |
| Ann. Div Income & YOC in 30 yrs: | $4,565,997,871.90 | 2,829,081.18% | |
| Portfolio Alpha: | 49.49% | ||
| Sharpe Ratio: | -58.56 | BAD | |
| Portfolio Weighted Beta: | 0.49 | ||
| CAGR: | 344.48% | ||
| AROC: | 39.16% | ||
| TROC: | 17.59% | ||
| Our 2022 Goal | |||
| 2022 Dividend Goal: | $4,800.00 | 54.60% | In Progress |
| 2022 Portfolio Value Goal: | $151,638.03 | 48.21% | In Progress |
| 6-year Portfolio Value Goal: | $175,000.00 | 41.77% | In Progress |
| 10-year Portfolio Value Goal: | $1,000,000.00 | 7.31% | In Progress |
Dividend Investing and Trading Report
Last week we have received $36.50 in dividends bringing our July’s dividend income at $63.60. That is slightly below my expectations.
Last week, we bought these dividend growth stocks:
– 50 shares of TRIN @ $14.44
This purchase brought our TRIN stake to 100 shares (as per our accumulation plan) and next week we will start selling covered calls against this position.
– 32 shares of GAIN @ $14.34
This purchase brought our GAIN stake to 100 shares (as per our accumulation plan) and next week we will review the options if we can start selling covered calls against this position. GAIN’s options are thinly traded and because of that, there is very little premium available, so we will have to move the expiration date and get pretty much at the money.
– 2 shares of CP @ $71.41
I initiated this position with just 2 shares as a reminder to accumulate shares in this company. I will be adding more shares later.
– 10 shares of BAC @ $31.87
I am accumulating Bank of America until I reach 100 shares (currently own 70 shares with this purchase). Once we accumulate 100 shares, we will start selling covered calls.
– 1 share of AAPL @ $147.41
I wish I had more money to add more shares at the current levels. It is a great opportunity to add more shares today. And once again, we are accumulating AAPL to reach 100 shares.
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 is a chart of our account equity showing our accumulation goal and the value of all stocks in our account. It shows a nice upward-sloping chart as our equities grow. This is a result of our options trading and using premiums to buy dividend stocks:
And here you can see the dividend income those equities pay us every year:
Growth stocks Investing and Trading Report
Last week, we bought the following growth stocks and funds:
- 25 shares of ICSH @ $49.99
I use ICSH as a cash equivalent. I built some reserves in the past but then I thought it was a waste of cash. So I liquidated some and invested it into other assets. And when this bear market hit, I suddenly became short on cash. A lesson learned. So I am now back to rebuilding my cash reserves. I will be slowly reinvesting all options profits and dividends into the ICSH fund until I reach my required cash reserves.
– 5 shares of AMZN @ $113.61
I think it is time to start slowly accumulating the beaten-down tech stocks. I like Amazon, among others, and I plan on accumulating to reach 100 shares. Once I finish accumulating, I will start selling covered calls.
– 1 shares of SPY @ $380.77
I am adding a share of SPY to get a more passive income and growth. I plan on accumulating to reach 100 shares. Once I finish accumulating, I will start selling covered calls. I may even replace the covered calls using a poor man’s covered call strategy.
– 2 shares of SPXL @ $380.77
Accumulating SPXL is my aggressive growth position. Once the market starts rallying again, this fund will go up three times faster than the entire market. Yes, it also goes down three times the market, but no decline lasts forever, so this will recover one day and SPXL will shine.
Options Investing and Trading Report
Last week we rolled our strangle trades to keep our account safe. I also closed many trades for a profit but these still were debit trades.
However, these adjustments and closures delivered a gain of +$979.00 making our July options income +$3,619.00.
We were actively trading our SPX strategy that delivered $5,365.00 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 $63.60 in dividends last week. Our portfolio currently yields 5.57% at $73,099.41 market value.
Our projected annual dividend income in 10 years is $65,085.00 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 $6,184.87 annual dividend income ($515.41 monthly income). We are 9.50% of our 10 year goal of $65,085.00 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. The expected dividend growth depends on what stocks we add 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 $134,916.14 to $141,593.41 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 repurchasing shares of our interest.
We aim to accumulate 100 shares of dividend growth stocks we like 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 +4.95% monthly ROI in July 2022, totaling a 54.98% ROI YTD. If our options income stays at this level by the end of the year, we will exceed our 45% annual revenue goal in selling options against dividend stocks.
However, due to the market selloff and reduction of value in our equity, our entire account is down -30.15%.
Our options trading averaged $5,741.86 per month this year. If this trend continues, we are on track to make $68,902.29 trading options in 2022. As of today, we have made $40,193.00 trading options.
Old SPX trades repair
We 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 from opening new aggressive trades.
Investing and trading report in charts
Account Net-Liq
Account Stocks holding
Last week, S&P 500 grew 34.80% since we opened our portfolio while our portfolio grew 3.95%. On YTD basis, the S&P 500 fell -29.96% and our portfolio -25.82%. We are outperforming the market.
The numbers above apply to our stock holdings only. Our overall account net-liq is down by -30.15% 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 7.31% 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 41.77% of that goal.
Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 48.21% of this goal.
Investing and Trading Report – Options Monthly Income
Investing and Trading Report – Options Annual Income
Our dividend goal and future dividends
We plan to make $4,800.00 in dividend income in 2022. As of today, we received $2,620.63. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $6,184.87 a year.
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