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My Goal 2022

I set up my investing and trading goal for 2022 and now is the time to write it down for the record. I plan on having the goal for 2022 simple and easy to track yet it may evolve over time.
 

2022 Goal summary

 
In 2022, I will focus on the following tasks:
 

  1. Buying dividend growth stocks and monetizing those positions.
  2. Developing SPX trading.
  3. Developing and managing 15% of the portfolio in the HFEA strategy.
  4. Increase Net-Liq value of the account by 30%
  5. Maintaining 10% of the portfolio in tech growth stocks
  6. Increasing exposure to SPY LEAPS and add one or two new contracts

 

Dividend growth stock purchasing goal

 
In 2022 I will continue purchasing dividend growth stocks as I did in 2021. But, I will also focus on adding high-yield dividend stocks and ETFs that are relatively safe. Here is the starting list of goals of stocks I plan on purchasing this year.
 

Goal 2022 start

 
This goal is a developing task and it will morph over time and grow. It is not a rigid set of tasks. If I see a new opportunity, better than the one listed in the table above, I will shift my focus.

However, besides the dividend growth stocks, I will be buying high-yield dividend stocks such as RYLD, IEP, and QYLD (and may add other covered calls ETFs) for high yield. These stocks do not provide capital growth though but I will be purchasing them for income. I would like to create a dividend income that would offset my mortgage payments. And I am starting with HELOC to offset. That will give me peace of mind that I have cash and income saved that would help to pay my monthly payments.
 

The “BSV salary reserve goal” is a task that I wish to save enough cash in BSV to cover my annual salary, health insurance, taxes, etc. to be able to trade for a living. I am a conservative person, so I want to have enough savings in case the stock market pukes and I won’t be able to withdraw money from the account. In other words, I do not want to get caught with my pants down.

 

SPX PCS trading goal

 
In December 2021, I started trading SPX again using credit put spreads. I modified the strategy and now I use simple indicators to determine whether to trade PCS or stay away.

In 2022, I will be opening trades in the following days and if the indicators tell me that it is safe to open a trade:
 

Mondays (7 days to expiration)
Tuesdays (30 days to expiration)
Wednesdays (7 days to expiration)
Fridays (60 days to expiration)

And every month, I will be adding an SPX hedge for black swan events.
 

If the indicators are negative, we will skip the trade. I dedicated $3,600 for the SPX trading, currently, the account (sub-account) is at $5,370.00, an approximate growth of 47.33%. Although it may change over time my goal will be to increase this sub-account to $10,000 by EOY.
 

If you are interested, you can subscribe to SPX alerts and receive an alert via email or you can follow our Twitter for the alerts (in order to follow the Twitter account, you must be a subscriber).
 

Investing 15% in HFEA goal

 
HFEA is again a strategy (passive with quarterly rebalancing) that involves buying 3x leveraged ETFs and holding them for growth. Other investors who use this strategy reported up to 45% earnings in their accounts. I dedicated approx. $15,000 to this strategy (representing 15% of my portfolio). In December 2021, the HFEA account was up almost 10%. In January, thanks to the wobbling market, the account lost over 6% and the entire HFEA account is up about 2.4%.

There is not much I can do about this strategy. I just hold and in March (and following months) I will be rebalancing (either adding new cash to increase the account to 15% of my entire portfolio or trimming the holdings if above the 15% threshold. And, also, rebalancing ETFs within the HFEA account to keep the target allocation).

When trimming the HFEA I plan on saving the cash to dividend stocks or ETFs. When adding cash (during underperforming quarters) I will use the saved cash to increase the HFEA balance. I have not yet decided which stock or ETF I will use. I planned to use BSV but I may elect to use another stock or ETF.
 

Net-Liq value goal

 
I created a 10-year plan on growing my portfolio (all accounts together) and for 2021 my goal was to reach $42,344.06 net liq value. I calculated the initial balance and its increase based on estimated growth from options trading, stocks accumulation, stocks growth, and received dividends. The year 2021 was so exceptional that I exceeded that goal almost three times.

Well, I do not expect this to happen in 2022. But I did the same calculation as in 2021 and my new goal for the portfolio value is $151,638.03.
 

I still have goals from last year that are long-term:
 

6-year Portfolio Value Goal:  achieve $175,000.00 net-liq value.
 

10-year Portfolio Value Goal:  achieve $1,000,000.00 net-liq value.

These goals are well underway and if my portfolio growth keeps growing at the estimated pace, I should be able to achieve the 6-year goal next year in lieu of planned 2024 and the $1M goal may get accomplished at the end of year 9. Let’s see, how 2022 progresses.
 

Invest 10% in growth stocks goal

 
Although I primarily focus on dividend stocks, I also want to own a few tech stocks such as Apple (AAPL), Snowflake (SNOW), Amazon (AMZN), Tesla (TSLA), Google (GOOGL), etc. In 2022 I plan to invest in these stocks but keep my exp[osure to 10% of my entire portfolio, though. The ultimate goal will be to reach 100 shares of each to be able to sell covered calls.

 

Monetizing stock holdings goal

 
My goal with all my stock holdings is to reach 100 shares so I can start selling covered calls against these positions. I will be also selling strangles (and strive to cover them, to have enough cash to cover the put side, and own 100 shares to cover the call side. In 2021, trading strangles and covered calls was my biggest moneymaker. I will continue to do so in 2022 although at a slower pace.

At the top of this blog, I state “making 45% annually trading options against dividend growth stocks”. In 2021 I made over 62%. In 2022, I plan to achieve 30%.
 

LEAPS goal

 
In 2020 and 2021 I added SPY LEAPS contracts to my holdings. The 2020 LEAPS is my biggest gainer. It is unrealized gain, though I will be rolling the LEAPS further away at some point cashing my gains. In 2022 I plan on adding one or two more contracts of the SPY LEAPS to my portfolio.
 

That’s all for 2022. I will be reporting progress on this goal regularly:

Every week, I will report my overall portfolio progress and achievements the same way as I did last year.
I will also report my SPX sub-account progress every week.
Every month, I will report HFEA and Challenge account progress.
 

I would like to ask you if you could write me in the comments what you want to see in my reports or if you want to see them modified and how. Also, please hit the like button under this post so I know you liked the content and that you want to see more of it in the future. Thank you!
 
 





2 responses to “My Goal 2022”

  1. Dale Drader says:

    Please continue the honest reporting.

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