Last week when the market rallied my account recovered and it went from $52k to over $65k in a day. Then it crashed and I am pretty much back where I started. Because of this extreme volatility and bearishness out there, I didn’t do too much trading last week. But I was buying the SPXL fund as I think this is the right thing to do. When the market goes down, I am buying this 3x leveraged ETF, and once the market recovers, I will be trimming that position. And, on top of that, I am selling covered calls.
I still struggle with cash and buying power. It is difficult to stay afloat. Many times during this bear market, it was the options dragging my account down, now my stocks joined the party and drag the account down too.
I didn’t trade much last week, only one covered call. That trading delivered +$54.00 premiums last week ending October 2022 at +$54.00 (+0.10%) options income. Our net-liq value increased by 4.36% to $54,372.41 value. That is still a terrible result. Our overall account is now down -48.04% YTD.
Here is our investing and trading report:
| Account Value: | $54,372.41 | +$2,369.84 | +4.36% |
| Options trading results | |||
| Options Premiums Received: | +$54.00 | ||
| 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: | +$7,987.00 | +12.15% | |
| 09 September 2022 Options: | +$2,997.00 | +5.76% | |
| 10 October 2022 Options: | +$54.00 | +0.10% | |
| Options Premiums YTD: | $56,329.00 | +103.60% | |
| Dividend income results | |||
| Dividends Received: | $66.10 | ||
| 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: | $683.58 | ||
| 09 September 2022 Dividends: | $555.20 | ||
| 10 October 2022 Dividends: | $66.10 | ||
| Dividends YTD: | $4,229.57 | ||
| Portfolio Equity | |||
| Portfolio Equity: | $155,598.37 | +$10,690.90 | +7.38% |
| Portfolio metrics | |||
| Portfolio Yield: | 6.26% | ||
| Portfolio Dividend Growth: | 11.94% | ||
| Ann. Div Income & YOC in 10 yrs: | $93,721.93 | 50.84% | |
| Ann. Div Income & YOC in 20 yrs: | $5,173,549.98 | 2,806.32% | |
| Ann. Div Income & YOC in 25 yrs: | $151,140,212.01 | 81,984.01% | |
| Ann. Div Income & YOC in 30 yrs: | $18,002,931,729.22 | 9,765,452.92% | |
| Portfolio Alpha: | 98.29% | ||
| Sharpe Ratio: | -14.49 | BAD | |
| Portfolio Weighted Beta: | 0.47 | ||
| CAGR: | 267.19% | ||
| AROC: | 66.55% | ||
| TROC: | 2.22% | ||
| Our 2022 Goal | |||
| 2022 Dividend Goal: | $4,800.00 | 88.12% | In Progress |
| 2022 Portfolio Value Goal: | $151,638.03 | 35.86% | In Progress |
| 6-year Portfolio Value Goal: | $175,000.00 | 31.07% | In Progress |
| 10-year Portfolio Value Goal: | $1,000,000.00 | 5.44% | In Progress |
Dividend Investing and Trading Report
Last week we have received $66.10 in dividends bringing our October’s dividend income at $66.10.
Last week, we bought these dividend growth stocks:
– 2 shares of COST @ $490.46
I plan on accumulating Costco shares and this is my initial investment. I will be slowly adding more shares in the near future until I reach 100 shares.
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:
- 35 shares of SPXL @ $62.60
I accumulated 200 shares of this ETF and started selling another covered call contract. I believe, accumulating this 3x leveraged ETF during this bear market is a great opportunity that will pay big in a recovery.
Options Investing and Trading Report
Last week I was not trading options much. I only opened one covered call against SPXL. The call was with Friday’s expiration and it expired for a full profit. Next week I will reopen the position.
That trade delivered a gain of +$54.00 making our October options income +$54.00.
We were actively trading our SPX strategy that delivered -$85.00 loss.
Expected Future Dividend Income
We received $66.10 in dividends last week. Our portfolio currently yields 6.26% at $54,372.41 market value.
Our projected annual dividend income in 10 years is $93,721.93, 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 $6,676.00 annual dividend income ($556.33 monthly income). We are 7.12% of our 10 year goal of $93,721.93 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 $144,907.47 to $155,598.37 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.
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 +0.10% monthly ROI in October 2022, totaling a 103.60% 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 -48.04%.
Our options trading averaged $5,632.90 per month this year. If this trend continues, we will make $67,594.80 trading options in 2022. As of today, we have made $56,329.00 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 has 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 25.82% since we opened our portfolio while our portfolio grew 2.54%. On YTD basis, the S&P 500 fell -38.94% and our portfolio -27.23%. 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 -48.04% this year.
Stock 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 5.44% 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 31.07% of that goal.
Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 35.86% 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 $4,229.57. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $6,676.00 a year. Our monthly projected dividend income is $556.33, and our current monthly dividend income is $352.46.
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