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August 2023 Investing and Trading Report

Another month, August 2023 is over. And it was a difficult month for our investing and trading. I expected it to be difficult because the markets rallied too fast and too hard in the previous few months. And if you are subscribed to our newsletter, I wrote in it that I wanted a deeper pullback. And we got 5% retreat which was perfectly normal and to be expected correction. This was a correction and it didn’t change the narrative of a new bull market. In fact, it confirmed it. We have more bullish signals indicating that this market will go higher.

Nevertheless, this pullback had surprisingly bad impact to our investing and trading. Our net-liq of the account shed away a stunning 16.80%. It dropped by -$12,033.60. I suspect this to be the result of margin trading and options which suddenly spiked and because I have some of them naked and sold them during low IV time, their impact was significant. However, as the market returns back to upward trajectory, I expect this to correct and the account will go higher again.

Our cash to buying power dropped a bit as we continued reinvesting our proceeds:

Cash - Net-Liq - BP 08

Our options trading delivered $3,498.00 gain last month (4.88%). Our net-liq value decreased by -16.80% to $71,619.81 value. Our overall account is up 15.04% YTD and -31.56% from when the bear market started in January 2022.

Here is our investing and trading report:


Account Value: $71,619.81 -$12,033.60 -16.80%
Options trading results
Options Premiums Received: +$3,498.00
01 January 2023 Options: +$1,466.00 +1.97%
02 February 2023 Options: $2,754.00 +10.34%
03 March 2023 Options: -$1,462.00 -2.05%
04 April 2023 Options: +$16,410.00 +8.54%
05 May 2023 Options: +$6,942.00 +9.85%
06 June 2023 Options: +$3,116.00 +4.05%
07 July 2023 Options: +$4,484.00 +5.36%
08 August 2023 Options: +$3,498.00 +4.88%
Options Premiums YTD: +$37,308.00 +52.09%
Dividend income results
Dividends Received: +$795.50
01 January 2023 Dividends: +$407.13
02 February 2023 Dividends: +$731.21
03 March 2023 Dividends: +$482.14
04 April 2023 Dividends: +$820.22
05 May 2023 Dividends: +$590.19
06 June 2023 Dividends: +$848.65
07 July 2023 Dividends: +$478.37
08 August 2023 Dividends: +$795.50
Dividends YTD: +$5,402.09
Portfolio Equity
Portfolio Equity: $211,270.70 -$31,952.04 -13.14%
Portfolio metrics
Portfolio Yield: 6.15%
Portfolio Dividend Growth: 23.35%
Ann. Div Income & YOC in 10 yrs: $547,583.80 251.97%
Ann. Div Income & YOC in 20 yrs: $27,472,481,899.83 12,641,273.08%
Ann. Div Income & YOC in 25 yrs: $1,590,227,801,629,540.00 731,732,355,914.03%
Ann. Div Income & YOC in 30 yrs: $10,754,061,522,193,600,000,000.00 4,948,407,244,053,650,000.00%
Portfolio Alpha: 46.01%
Sharpe Ratio: 4.42 EXCELLENT
Portfolio Weighted Beta: 0.56
CAGR: 199.74%
AROC: 53.77%
TROC: 5.15%
Our 2023 Goal
2023 Dividend Goal: $8,000.00 67.53% In Progress
2023 Options Income Goal: $70,000 53.30% In Progress
2023 Portfolio Value Goal: $96,532.51 74.19% In Progress
6-year Portfolio Value Goal: $175,000.00 40.93% In Progress
10-year Portfolio Value Goal: $1,000,000.00 7.16% In Progress


Dividend Investing and Trading Report


In August 2023 we have received $795.50 in dividends bringing our dividend income at $5,402.09.

We did not purchase any dividend stock this month.

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 7

As you can see in the chart above, August was pretty much catastrophic for our equity holdings. They dropped significantly.

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

Annual Dividend Payout 7


Growth stocks Investing and Trading Report


In August 2023, we purchased no growth stocks.


Options Investing and Trading Report


In August 2023, our options trading delivered a gain of $3,498.00. I hoped, we would be able to make more money but due to the correction, I had to stay low and preserve cash to maintain buying power. I also used this income to adjust some of the SPX trades that needed adjustment so they can expire worthless.


Expected Future Dividend Income


We received $795.50 in dividends last month. Our portfolio currently yields 6.15% at $71,619.81 market value. I am happy with this progress as I am nearing a $1,000 a month in dividend income. As of today, our projected monthly dividend income is $688.97 (the real income is $450.17, but that is because our new holdings didn’t pay the dividend yet). Note that these numbers are averages. One month we get less another month we get more income.

Our projected annual dividend income in 10 years is $547,583.80, 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 $8,267.69 annual dividend income ($688.97 monthly income). We are 1.51% of our 10 year goal of $547,583.80 dividend income.

Future Divi on YOC 08

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 $243,222.75 to $211,270.70 last month.

In 2023 we planned 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 8

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 4.88% monthly ROI in August 2023, totaling a 52.09% ROI YTD. We exceeded our 45% annual revenue goal in selling options against dividend stocks.

Our entire account is still down -31.56% from when the bear market started. However, in 2023 our account is up 15.04% YTD. During 2022 bear market it became apparent that although I had a lot of cash savings, I didn’t have enough. So my goal for the rest of the year will be accumulating cash. The market is still in an overbought territory so I will not be making new purchases, rather, I will be saving cash for the next crash.

Our trading averaged $4,663.50 per month this year. If this trend continues, we will make $55,962.00 in trading options in 2023. As of today, we have made $37,308.00 in trading options. This is below our projected goal. Based on the goal, we should average $5,834 options income per month. But I hope, as the year progresses, we can increase options income to our goal.


Investing and trading report in charts


Account Net-Liq


TW Account trading Net-Liq 7

The drawdown of our account is highly discouraging, but it started improving. I am not selling any stock positions, and I will be buying back those I sold to release our Buying Power. On top of that, I will be buying more dividend-paying shares as much as possible.


Account Stocks holding


TW Account holdings 7

Last month, S&P 500 grew 56.11% since we opened our portfolio while our portfolio grew 29.47%. On YTD basis, the S&P 500 grew 23.38% and our portfolio 19.99%. We are underperforming market by -3.38%.

The numbers above apply to our stock holdings adjusted by options premiums.


Stock holdings Growth YTD


TW Account holdings Growth YTD 8

Our stock holdings are underperforming the market. Hopefully, this trend will improve, and we will do better than S&P 500. However, our portfolio performs better in bear markets so far. In 2022 we outperformed S&P 500 by 11.73% (it lost less than the market).

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 7.16% 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 40.93% of that goal.

Our 2023 year goal is to grow this account to a $96,532.51, and today we accomplished 74.19% of this goal.


Investing and Trading Report – Options Monthly Income


TW Options Trading Income 8

Investing and Trading Report – Options Annual Income


TW Options Annual Trading Income 8


Our dividend goal and future dividends


TW Received vs Projected Dividends 8

We planned to make $8,000.00 in dividend income in 2023. As of today, we received $5,402.09. We also accumulated enough shares to start making $8,267.69 a year. Our monthly projected dividend income is $688.97, and our current monthly dividend income is $450.17.

TW Received vs Future monthly Dividends 8


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