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2022 Week 34 investing and trading report

Last week I avoided trading as I was traveling. I was however forced to do a few trades. Why forced? It is typically bad to be forced to do trades and they usually end up in losses. But this time I had built reserves to avoid losses (thank God!).

What happened? Well, have you ever heard about a “Day Trade” call? Not a Pattern Day Trade call which we all hate. I just learned this stupid regulation the hard way. So, yes, a Day Trade call is another imbecilic FINRA regulation that does more harm than protecting anything against anyone. As stupid, as it can be. In a nutshell, it is pretty much a rule that if you use unsettled buying power on the same day, you will get a “Day Trade call” no matter how big your account is (unless you have tons of cash on it which I usually don’t).

It works this way – every day, your broker tells you how much “Starting Day Trade Buying Power (SDTBP)” you have and all your debit trades on that day must not exceed that amount. If it does, you will be serviced with a Day Trade call and if you do not settle it in a day or two they will block your account for 90 days. So, for example, if your SDTBP at the beginning of the day is $1,700.00 and you open new trades worth $4,000 debit that same day, you will be issued a DT call for $2,300 the next day. All you have to do is either deposit cash, or liquidate your option or stock positions to satisfy your call. Stupid? Yes, incredibly. I still wonder what the regulator was thinking when inventing this rule.

Fortunately, I had funds parked in the ISCH fund that I started rebuilding a few months ago. All I had to do is to liquidate that position to satisfy the call. And on Monday, my account should be free again and I should be able to buy the ICSH shares back to park my cash so I do not use it inappropriate way (like buying more shares or opening new options positions which could be pricey in this wacky market).
 

The ICSH liquidation had an impact on my stock positions but also on my cash-BP:

 
Cash - Net-Liq - BP 34
 

Last week, I made a few adjustments only, but these adjustments were already for credit.

Our trading delivered +$4,171.00 premiums last week ending August 2022 at +$7,343.00 (+9.36%) options income. Our net-liq value increased by +3.29% last week to $78,414.50 value, and our overall account is down -25.07% YTD.
 

Here is our investing and trading report:

 

Account Value: $78,414.50 +$2,580.97 +3.29%
Options trading results
Options Premiums Received: +$4,171.00    
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: +$8,717.00 +11.39%  
08 August 2022 Options: +$7,343.00 +0.37%  
Options Premiums YTD: $52,634.00 +67.12%  
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: $343.99    
06 June 2022 Dividends: $445.80    
07 July 2022 Dividends: $367.66    
08 August 2022 Dividends: $531.60    
Dividends YTD: $3,456.29    
Portfolio Equity
Portfolio Equity: $171,555.41 -$10,550.75 -5.79%
Portfolio metrics
Portfolio Yield: 5.42%    
Portfolio Dividend Growth: 11.61%    
Ann. Div Income & YOC in 10 yrs: $66,966.25 37.25%  
Ann. Div Income & YOC in 20 yrs: $2,314,761.72 1,287.43%  
Ann. Div Income & YOC in 25 yrs: $43,607,716.90 24,253.90%  
Ann. Div Income & YOC in 30 yrs: $2,787,533,849.05 1,550,380.77%  
Portfolio Alpha: 61.69%    
Sharpe Ratio: 4.63 EXCELLENT  
Portfolio Weighted Beta: 0.49    
CAGR: 327.30%    
AROC: 48.24%    
TROC: 4.62%    
Our 2022 Goal
2022 Dividend Goal: $4,800.00 72.01% In Progress
2022 Portfolio Value Goal: $151,638.03 51.71% In Progress
6-year Portfolio Value Goal: $175,000.00 44.81% In Progress
10-year Portfolio Value Goal: $1,000,000.00 7.84% In Progress

 

Dividend Investing and Trading Report

 
Last week we have received $0.00 in dividends bringing our August’s dividend income at $531.60. That is slightly below my expectations.

Last week, we did not purchase any dividend stock.

 

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:

 
Account Equity week 34
 

And here you can see the dividend income those equities pay us every year:

 
Annual Dividend Payout week 34

 

Growth stocks Investing and Trading Report

 

Last week, we purchased no growth stocks. I sold my ICSH position to satisfy the DT call (that is why my equity value dropped and BP and cash raised).

 

Options Investing and Trading Report

 
Last week I was just adjusting my existing options positions.

However, these adjustments delivered a gain of +$4,171.00 making our August options income +$7,343.00.

 

We were actively trading our SPX strategy that delivered +$0.00 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 received $0.00 in dividends last week. Our portfolio currently yields 5.42% at $78,414.50 market value.

 
Our projected annual dividend income in 10 years is $66,966.25, but that projection is if we do absolutely nothing and let our positions grow without adding new positions or reinvesting the dividends.

We are also set to receive a $6,684.50 annual dividend income ($557.04 monthly income). We are 9.98% of our 10 year goal of $66,966.25 dividend income.

 
Future Divi on YOC week 34
 

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 decreased from $183,881.92 to $171,555.41 last week.

In 2022 we plan on accumulating dividend stocks, monetizing these positions, HFEA strategy, and SPX trading. We plan to raise more of our holdings to 100 shares to sell covered calls. We continued rebalancing our options trades that released buying power significantly. That allowed us to start repurchasing shares of our interest.

 
Stock holdings trading week 34
 

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 +9.36% monthly ROI in August 2022, totaling a 67.12% 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.

Our entire account is still down -25.07%.
 

Our options trading averaged $6,579.25 per month this year. If this trend continues, we will make $78,951.00 trading options in 2022. As of today, we have made $52,634.00 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

 

TW Account trading Net-Liq week 34
 

Account Stocks holding

 
TW Account holdings week 34
 

Last week, S&P 500 grew 40.27% since we opened our portfolio while our portfolio grew 19.65%. On YTD basis, the S&P 500 fell -24.49% and our portfolio -10.12%. This is an excellent result! We are significantly outperforming the market.

The numbers above apply to our stock holdings only. Our overall account net-liq is down by -25.07% this year.
 

Stock holdings Growth YTD

 
TW Account holdings Growth YTD
 

Our stock holdings are starting to outperform the market. Hopefully, this trend will stay, and we will constantly do better than S&P 500.
 

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 7.84% 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 44.81% of that goal.
 

Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 51.71% of this goal.

 

Investing and Trading Report – Options Monthly Income

 
TW Options Trading Income week 34
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Trading Income week 34
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 34
 

We plan to make $4,800.00 in dividend income in 2022. As of today, we received $3,456.29. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $6,684.50 a year. Our monthly projected dividend income is $557.04, and our current monthly dividend income is $288.02.
 

TW Received vs Future Dividends week 34

 

I have a favor to ask. If you like this report, please, hit the like like button button so I know that there is enough audience that like this content. Also, if there is something you want to know or you want me to change this report to a different format, let me know in the comments section.

 
 





2 responses to “2022 Week 34 investing and trading report”

  1. Czsram says:

    Hi Martin,

    I’m not sure if I may be missing something but when I click on the “spreadsheet” link to view any recent trades, it appears to display a list that is largely 2021 with the most recent trades being in March 2022. There are no “new” indicators as far as I can tell. Any direction would be helpful, thanks!

    • Martin says:

      Hi, I have not been updating that spreadsheet lately as I did so many trades that it was impossible to keep track. I am looking at some better way to do that. So, true, for now, the spreadsheet is old. Workin on improvements, though.

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