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Posted by Martin June 11, 2022
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HFEA May 2022 strategy report


The HFEA strategy continued underperforming significantly in May 2022. Our SPXL is down by -34.52% (thanks to options, the loss is only -30.63%), but the biggest surprise was a substantial loss on TMF holding that was supposed to protect our SPXL drawdown. It didn’t. The TMF is down by a stunning -57.92% (and since we were selling options around the TMF position, we are down only -37.57%).

Overall, I am disappointed with this strategy. But I am still OK with buying leveraged ETFs like the SPXL, but soon, I plan to modify this strategy by buying the SPXL only. I will be buying the SPXL fund on the way down and trimming the position on the way up. For example, when the SPXL drops 20% below my cost basis, I will be buying more shares. When it goes up 20% above the cost basis, I will trim the position and save the cash for purchases. But first, I need to get a break-even at TMF (keep selling options), get rid of it, and reallocate the cash to the SPXL fund or reserves.

Originally, I dedicated $15,000 to this strategy. That represented approx. 15% of our portfolio. If the strategy underperforms and is below this amount, I will add cash to it. If it outperforms and ends above this threshold, I will trim the position and save the cash aside. We will be rebalanced quarterly, and our next rebalancing will occur at the end of June 2022.

The HFEA strategy is about investing in leveraged ETF but adding protection to the downside since the leverage works both ways. I like the idea because drawdowns can be significant.
 

Initial HFEA allocation

 
Start date: 11/27/21
Approach: Variable allocation* – 75%/25% SPXL/TMF
Rebalancing frequency: Quarterly*
Return (total / YTD): -59.50%/-59.50%
Initial contribution: 15% of portfolio Net-Liq (~ $15k)
 

* Variable allocation will be adjusted based on the moving averages and VIX term structure. When moving averages turn negative (downside) and VIX turns into backwardation, the SPXL allocation will be decreased and TMF allocation increased.

 

Current HFEA allocation

 
Goal Approach: 75% SPXL, 25% TMF
Current Approach: 54% SPXL, 16% TMF
 

MONTH NET-LIQ PROFIT/
LOSS
PROFIT/
LOSS %%
November 2021 $13,441.91 $0.00 0.00%
December 2021 $14,773.72 $1,331.81 9.91%
January 2022 $12,597.96 -$2,175.76 -14.73%
February 2022 $11,665.69 -$932.27 -7.40%
March 2022 $12,483.01 $817.32 7.01%
April 2022 $8,694.65 -$3,788.36 -30.35%
May 2022 $6,923.49 -$1,771.16 -20.37%

 

Our HFEA strategy lost -59.50% in April 2022 while the entire market lost -14.03%.
 

HFEA charts

 
HFEA net-liq 05
Strategy Net liquidation value
 

HFEA vs SPY net-liq 05
Strategy vs SPY Net liquidation value
 

HFEA vs SPY
Strategy performance vs. SPY
 

May 2022 turned out to be the second-worst month ever for this strategy as both the SPXL and TMF funds declined significantly. However, I will slowly re-allocate funds into SPXL in preparation for the next market rally. When it comes, I expect this strategy to outperform the market significantly.
 
 




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Posted by Martin June 11, 2022
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May 2022 $100 Challenge account review


The market is not good for our Challenge account so far. We started aggressively and had to scale down significantly when the valuation reset hit Wall Street. We are significantly down now, but setbacks are part of any trading & investing.

This is a long-term investing and trading program, and we are determined to invest as per the selected strategy – accumulate assets and monetize them. The goal is to accumulate dividend stocks and sell options around the positions. But we also want to sell options to generate income that can be used to buy more assets. Since our account is tiny and the market is not friendly for small accounts now. With all the recession talks, fear, and extreme volatility – the small accounts can be wiped out easily. That is why we are not trading options in this market yet but only accumulating assets.

Some investors may be impatient, and they want to trade. But believe me, if you do not have large enough capital, trading can be challenging. We have already lost gains and money so far in this program, going way too aggressively on trading with small capital. But we have time on our side, and we will rebuild the account over time. We are already accumulating assets that will help us to achieve that goal.

That’s why in May 2022, we also didn’t trade, as the stock market is still in a bear market, and no one knows when this will stop. But once we turn bullish again, we will adjust our strategy too. Now we are sitting back, depositing cash as per the plan, and buying stocks.
 

First year of the Challenge program

 
May 2022 was the last month of the first year of this program. Nine more months to come. The first year finished down, significantly outperforming our goal and benchmark. But I expect this to change with the market and the market’s mood.

We were supposed to finish the first year with a $1,336 Net-liq value. We ended with a $428.82 value.
 

$100 Challenge account review

 
We are entering a second year, and I expect this new year of our program to be better than the last one.
 

Accumulation phase

 
The account is underperforming our goal. We will be investing in building equity positions first and wheeling the positions in June and subsequent months.
 

May 2022 Challenge account review

 

MONTH GOAL $$ ACTUAL $$
June 2021: $203.00 $202.67
July 2021: $306.00 $334.75
August 2021: $409.00 $397.71
September 2021: $512.00 $476.91
October 2021: $615.00 $632.37
November 2021: $718.00 $659.00
December 2021: $821.00 $802.08
January 2022: $924.00 $594.29
February 2022: $1,027.00 $283.87
March 2022: $1,130.00 $301.74
April 2022: $1,233.00 $350.56
May 2022: $1,336.00 $428.82

 

$100 Challenge account review

 
From the chart above, the red dot (line) indicates the current account value, compared to the blue line (plan). Our account is underperforming our goal. But I expect this to improve with the market. We will keep buying assets and monetize them once we accumulate enough shares.
 

April 2022 Overall Challenge account review

 
The chart below indicates our account value compared to the overall goal and plans to grow the $100 investment into a $75,000 portfolio. As of today, we are still at the beginning of our journey.

YEAR CONTRIBUTIONS $$ GOAL $$ ACTUAL $$
Year 0: $100.00 $100.00 $100.00
Year 1: $1,300.00 $1,336.00 $428.82
Year 2: $2,500.00 $3,016.96  
Year 3: $3,700.00 $5,303.07  
Year 4: $4,900.00 $8,412.17  
Year 5: $6,100.00 $12,640.55  
Year 6: $7,300.00 $18,391.15  
Year 7: $8,500.00 $26,211.96  
Year 8: $9,700.00 $36,848.27  
Year 9: $10,900.00 $51,313.64  
Year 10: $12,100.00 $70,986.56  

 

$100 Challenge account review goal

 

April 2022 Challenge account Income

 

Total Invested in Stocks $595.24
Total Unrealized Profit -$116.35
Total Realized Profit $12.83
Strangles Income -$1,316.00
Dividends Income $21.88
Deposits Total $1300.00
Cash $1.44
Net-Liq $480.33

 

Cumulative return Challenge account review

 

As of today, our challenge account provided a -86.06% monthly cumulative return.
 

$100 Challenge account review goal

 
$100 Challenge account review goal

 

If you want to see what investments we take, what trades and strategies we will use to grow this small account join our program today and grow your money too. We engage in safe investments, select strategies to maximize winning trades, and grow our portfolio. And you can do it too, today! We do not provide quick rich promises, gambling, or reckless strategies. We want our portfolio to grow steadily and preserve our capital while maximizing returns.
 

As a member, you will have access to the following features:
 

 

 




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Posted by Martin May 28, 2022
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2022 Week 21 investing and trading report


Is the market finally turning around so that our trading and investing can improve? It was a disaster so far. I constantly battle with buying power and it makes me very angry. As I mentioned before, I have $60,000 in cash but constantly no buying power. Here is a track of my net-liquidating value, buying power, and cash:

 
Future Divi on YOC week 20
 

I understand that the volatility is still elevated and that puts pressure on the stocks in my portfolio as well as options trades but I don’t understand why my net-liq is $80k, cash is $60k, and my stocks market value is $132k and yet I do not have the cash to trade! I asked my broker for some explanation and they were clueless.

This makes me constantly adjust my options trades to keep my buying power positive. And this is extremely frustrating as well as costly as I no longer can adjust for credit but must do so for debit.

These debit trades cost me another -$703.00 last week. Our net-liq value went up by +7.52% last week and overall account is down -20.02% YTD. I hope, that when the market reverses and starts trading up again, this will change.
 

Here is our investing and trading report:

 

Account Value: $83,696.07 +$6,296.67 +7.52%
Options trading results
Options Premiums Received: -$703.00    
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: -$7,529.00 -8.82%  
Options Premiums YTD: $10,750.00 +12.84%  
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: $220.20    
Dividends YTD: $1,987.44    
Portfolio metrics
Portfolio Yield: 5.58%    
Portfolio Dividend Growth: 11.61%    
Ann. Div Income & YOC in 10 yrs: $59,940.92 39.24%  
Ann. Div Income & YOC in 20 yrs: $2,205,576.56 1,443.96%  
Ann. Div Income & YOC in 25 yrs: $43,885,453.67 28,731.12%  
Ann. Div Income & YOC in 30 yrs: $3,019,638,826.54 1,976,910.41%  
Portfolio Alpha: 6.78%    
Sharpe Ratio: 3.04 EXCELLENT  
Portfolio Weighted Beta: 0.56    
CAGR: 389.97%    
AROC: 12.43%    
TROC: 14.44%    
Our 2022 Goal
2022 Dividend Goal: $4,800.00 41.41% In Progress
2022 Portfolio Value Goal: $151,638.03 55.19% In Progress
6-year Portfolio Value Goal: $175,000.00 47.83% In Progress
10-year Portfolio Value Goal: $1,000,000.00 8.37% In Progress

 

Dividend Investing and Trading Report

 
Last week we have received $0.00 in dividends bringing our May’s dividend income at $220.20. That is well below my expectations. Maybe, there will be more payments coming by the end of the month next week (2 days?) but I doubt it.


Last week, we bought these dividend growth stocks:

 
– 20 shares of TRIN @ $15.22
– 3 shares of BAC @ $35.56

 
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 you can see our dividend income per stock holding:

 
Annual Dividend Payout week 21

 

Growth stocks Investing and Trading Report

 


Last week we bought the following growth stocks and funds:
 

 

  • 2 share of SPXL @ $76.77
    I keep buying SPXL when it is very undervalued. My reason is that it should grow faster than the market when the market finally reverses and goes up. And I will keep buying when the price of the fund is under my cost basis. I will stop buying when the price gets above my cost basis, and when the gains reach 50% I will start trimming the position.
  • 100 shares of SNOW @ $285.00 (I was assigned to these shares but I do not have cash to cover the purchase. Fortunately, this was a spread so next week I will assign my long put to sell the shares (or sell the shares and the put at the same time).

  • 10 shares of TQQQ @ $27.72
    I have similar reasons for buying the TQQQ position. I think it is time to start accumulating growth NASDAQ stocks and I decided to use TQQQ leveraged ETF to grow up faster than the index.

 

Options Investing and Trading Report

 
Last week we rolled our strangle trades to keep our account safe. Some of those rolls could have been avoided if I had enough cash reserves.

However, these adjustments delivered a loss of -$703.00 making our May options income -$7,529.00.

 

We were actively trading our SPX strategy that delivered $90.00 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 $0.00 in dividends last week. Our portfolio currently yields 5.58% at $83,696.07 market value.

 
Our projected annual dividend income in 10 years is $59,940.92 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 $5,917.86 annual dividend income ($493.16 monthly income). We are 9.87% of our 10 year goal of $59,940.92 dividend income.

 
Future Divi on YOC week 21
 

The chart above shows how our future dividend income is based on the future yield on cost and what dividend income we may expect in the future. The expected dividend growth depends on what stocks we are adding 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 $132,071.97 to $139,780.89 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 buying shares of our interest again.

 
Stock holdings trading week 21
 

Our goal is to accumulate 100 shares of dividend growth stocks we liked 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 -9.00% monthly ROI in May 2022, totaling a 12.84% ROI YTD. We hope that in 2022 we exceed our 45% annual revenue selling options against dividend stocks target, although as of today, we are getting way behind this goal and it seems we will not achieve it at all.

Our entire account is down -20.02%.
 

Our options trading averaged $2,150.00 per month this year. If this trend continues, we are on track to make $25,800.00 trading options in 2022. As of today, we have made $10,750.00 trading options.
 

Old SPX trades repair

 

Last week we have not adjusted any of our old trades. The market is playing with me. When all the ods looked good and I had a chance to get rid of one bad trade, the market tanked ruining my chance to improve the position. Now I am back at the beginning of my attempt to fix the old trade.

We however 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 away from opening new aggressive trades.

 

Investing and trading report in charts

 

Account Net-Liq

 

TW Account trading Net-Liq week 21

 

Account Stocks holding

 
TW Account holdings week 21
 

Last week, S&P 500 grew 43.75% since we opened our portfolio while our portfolio grew 5.99%. On YTD basis, the S&P 500 fell -21.02% and our portfolio -23.78%. We are underperforming the market. When the market was dropping, our losses were smaller than the market, now when the market is going up, our portfolio goes up slower than the market.

The numbers above apply to our stock holdings only. Our overall account net-liq is down by -20.02% 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 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 8.37% 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 47.83% of that goal.
 

Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 55.19% of this goal.

 

Investing and Trading Report – Options Monthly Income

 
TW Options Trading Income week 21
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Trading Income week 21
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 21
 

We planned to make $4,800.00 in dividend income in 2022. As of today, we received $1,987.44. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $5,917.86 a year.
 

TW Received vs Future Dividends week 21

 

Our account cumulative return

 

The chart below indicates our cumulative adjusted return since we started tracking this metric.
 

TW cumulative (overall) trading return wk 21
 

Here is the cumulative return for the year 2022:
 

TW cumulative (2022) trading return wk 21
 

Our win ratio overall:
 

TW trading win ratio (overall) wk 21
 

Our win ratio for 2022:
 

TW trading win ratio (2022) wk 21
 

As of today, our account overall cumulative return is -24.88% (note, data in this section are since March 13, 2021, only as that is the date we started tracking these metrics). Our 2022 cumulative return is -49.11%. That means we erased the entire 2021 revenue. That is a horrible result. But I am optimistic. As I mentioned above, the results are temporary as we are rolling our trades and these rolls cause realized losses while we have open unrealized gains. Once the open trades end (when this horrible market finally calms down), the gains will offset the losses.

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.

 
 




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Posted by Martin May 27, 2022
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2022 SPX put credit spreads trading review – week 21


Last week I didn’t trade SPX much, just tried to stay afloat. I mostly rolled the trades away and created box trades. That is a trade where a short call has the same strike as the long put and the short put has the same strike as the long call. This way the structure resembles a box. Now when it looks like the market finally found a bottom and may go higher again, my goal will be to adjust those trades and get rid of them. Will the market go higher? I believe so. And I do not care what the doom and gloom predictors say. They are wrong. We are not heading into a recession and the inflation is already going lower.

Our strategy works and we could deliver $90 income this week. That brought our account up by +0.88% while SPX gained +6.58%.

Overall, the SPX account is up +187.28% since the beginning of this program, and we have $8,585 in unrealized gains.

We also had a trade that expired in the money (tomorrow) that we didn’t offset by a new box. We will do that next week, though.

 

Initial trade set ups

 

For my SPX strategy, I dedicated a $3,600 initial amount that will be used to trade SPX PCS strategy per week. If this amount is depleted, I will evaluate the strategy to determine whether to continue or change it. If I grow this amount, I will scale up the trading.
 

WHAT WILL WE TRADE?    
DAY DTE TYPE
MONDAY 7 DTE & 40 delta 10 wide Put Credit Spread
TUESDAY 30 DTE & 40 delta 10 wide Put Credit Spread
WEDNESDAY 7 DTE & 40 delta 10 wide Put Credit Spread
FRIDAY 60 DTE & 14 delta 10 wide Put Credit Spread
EVERY MONTH 120 DTE Put Debit Spread – HEDGE

 

Our SPX strategy is designed as a directional options trading. We are selling credit put spreads to collect premiums and hopefully, these spreads expire worthlessly or we buy them back for a small debit.

We use a set of indicators (mostly based on moving averages) and market sentiment that generates bullish signals. The trading is based on a “trend following strategy”. If we have a bullish signal and bullish trend, we open the trade. If we do not have a signal, we stay away.

We set the set of rules and alerts and backtested them. The backtesting software proved that the strategy was viable and returned good gains. We also tried to automate the decision-making as much as possible to have the trading as mechanical as possible. This helps eliminate our emotions. The decision-making was reduced to: “bullish signal present” – open a trade, “not present” – stay away. it worked well.

Then 2022 year came and put this strategy to a hard test in the violent market. The signals worked well, but we had old trades that got busted and didn’t have time to perform. So I had to evaluate the strategy. The original strategy was based on letting the trade expire in the money and take a loss. But I didn’t like it. I tested an option of rolling the trade rather than letting it be and I feel a lot more comfortable with that.

Rolling a trade is still a losing trade because we close the old trade for a loss and open a new trade for a credit that partially offsets the loss. We also add a credit call spread or widen the put spread to get more credit. I believe by managing these trades and offsetting them with an opposite, adjusted, or new trade will result in fewer losses and larger gains. And so far, this strategy works.

Here you can see all our trades:

 
SPX PCS account value
Click on the picture above to see the entire list.
 

We do not trade 0 DTE trades. This strategy is designed to be as passive as possible. You open a trade and let it run. You do not need to be glued to the computer all the time. The strategy takes advantage of the market’s historical behavior of going mostly up. Yes, there will be selloffs and corrections, even bear markets but over time, it goes up. And therefore our strategy is designed for this direction. The premise is, that if we have a bullish trend, we open a bullish spread and let it run. 80% or 90% of the time, it will be a winning trade. And if the trend is strong, we even open more aggressive trades (which is not the case today due to the market’s correction).

How much money you can trade?

As you can see in the table below, the highest amount of cash to trade this strategy is $19,995.00. That will allow for all adjustments, rolls, and comfortable trading without blowing your account. Can you trade less? Well, yes, I started with a $3,600 initial amount. But you need to be selective. You won’t trade all trades. You just trade the safest trades only (which is the Friday trade), especially in this market and when the market gets out of this mess you can start adding trades. And you do not compound. You must wait for the original trade to end before opening a new trade. This way the growth will be a lot slower and you collect less credit but you do not blow your account, mainly when you need to roll and you do not have money to do that (as the old busted trade will need more buying power which can be reduced by adding an offsetting trade that neutralizes the old trade, but you still will need that initial buying power).

 

Last week trading

 

Overall, the strategy resulted in a +187.28% gain last week.
 

Initial account value (since inception: 12/07/2021): $3,600.00
Last week beginning value: $10,251.95
Last week ending value: $10,341.95 (+0.88%; total: +187.28%)
The highest capital requirements to trade this strategy: $19,995
Current capital at risk: $18,205
Unrealized Gain: $8,585 (+47.16%)
Realized Gain: -$828 (-4.55%)
Total Gain: $7,757 (+42.61%)
Win Ratio: 64%
Average Winner: $254
Average Loser: $463

 

SPX PCS account value
SPX PCS account value
 
Our SPX net-liq increased slightly last week. The market is volatile and selling too much and because of that, I am reducing our trading activity to just adjusting our existing trades.
 

SPX PCS account vs SPX
SPX PCS account vs SPX index net liq
 
Our account is slowly growing while the entire market was struggling even though last week SPX grew faster than our account. I am looking forward to this selling to end and the market resuming its bullish uptrend. We will be able to get into the more aggressive trades and boost our income significantly.

 

SPX PCS account vs SPX
SPX PCS account vs SPX index
 

If you want to receive trade alerts whenever we open a new SPX put credit spread or a hedge trade, you can subscribe to our service:

 

 

Note, if you wish to subscribe to multiple levels, you can do so by subscribing to one level only and then send us an email that you want to be added to other levels too.

Also, if you like this report, hit the like button so I know there is enough audience wanting to see this type of report. If you have any questions or want to see anything else about my SPX trading, do not hesitate to contact me or write a comment in the comments section. Thank you!

 
 




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Posted by Martin May 21, 2022
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2022 Week 20 investing and trading report


Trading and investing this year were a disaster so far. I think this was the worst year and worst decline I have experienced. The Covid plunge? No problem, I could manage the portfolio well and made tons of money. 2018 decline? Not a problem. Yes, I felt the pressure, but I think today, it is worse. 208-2009? I don’t think I experienced the same pressure as today.

It is not that the markets were that bad. Overall, S&P500 barely reached the bear market threshold. But it is the slow decline and depth at which some stocks fell this year. Many high-quality dividend stocks are 30% or more down. And some tech stocks I decided to accumulate in 2021 are 80% or more down. I do not remember this to be happening to my portfolio before. Overall, I am down almost $30,000, and not sure when this carnage stops. Even bonds I bought in my HFEA strategy didn’t protect my portfolio as bonds crumbled more than many of my stocks. There was nowhere to hide.

But I am holding all my shares and try buying when my buying power allows (which is difficult now as my margin requirements are high. I have $60,000 in cash but I cannot use it because the broker blocks it as margin maintenance. And my net-liq is down to $77,000. I have $60,000 cash and $77,000 net liq. Something is not adding up here.

Last week, I was in a defensive mode defending open positions. Options trading was mostly for debit and we lost another -$1,605.00 rolling those trades.

Our Net-liq also dropped significantly by -11.68% last week and overall account is down -26.04% YTD. I hope, that when the market reverses and starts trading up again, this will change. I have not taken any physical losses by closing any stock positions. I hold them all and keep selling covered calls. My options trades were rolled, and they show a realized loss but unrealized gain at the same time. I expect the unrealized gain to move to realized gains once the market changes and the trades will be closed as winners. Until then, we wait and protect the portfolio even for debit. It will change soon.

 

Here is our investing and trading report:

 

Account Value: $77,399.40 -$9,040.12 -11.68%
Options trading results
Options Premiums Received: -$1,605.00    
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: -$6,826.00 -8.82%  
Options Premiums YTD: $11,453.00 +14.80%  
Dividend income results
Dividends Received: $193.72    
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: $220.20    
Dividends YTD: $1,987.44    
Portfolio metrics
Portfolio Yield: 5.89%    
Portfolio Dividend Growth: 11.61%    
Ann. Div Income & YOC in 10 yrs: $65,963.99 43.42%  
Ann. Div Income & YOC in 20 yrs: $2,748,202.85 1,809.18%  
Ann. Div Income & YOC in 25 yrs: $60,938,473.08 40,116.55%  
Ann. Div Income & YOC in 30 yrs: $4,850,060,191.32 3,192,854.54%  
Portfolio Alpha: 8.73%    
Sharpe Ratio: 6.20 EXCELLENT  
Portfolio Weighted Beta: 0.56    
CAGR: 382.56%    
AROC: 10.77%    
TROC: 7.33%    
Our 2022 Goal
2022 Dividend Goal: $4,800.00 41.41% In Progress
2022 Portfolio Value Goal: $151,638.03 51.04% In Progress
6-year Portfolio Value Goal: $175,000.00 44.23% In Progress
10-year Portfolio Value Goal: $1,000,000.00 7.74% In Progress

 

Dividend Investing and Trading Report

 
Last week we have received $193.72 in dividends bringing our May’s dividend income at $220.20.

Last week, we have not purchased any dividend stock.

 

 

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 you can see our dividend income per stock holding:

 
Annual Dividend Payout week 20

 

Growth stocks Investing and Trading Report

 


Last week we bought the following growth stocks and funds:
 

 

  • 1 share of SPXL @ $84.02

     

Options Investing and Trading Report

 
Last week we rolled our strangle trades to keep our account safe. Some of those rolls could have been avoided if I had enough cash reserves.

However, these adjustments delivered a loss of -$1,605.00 making our May options income -$6,826.00.

 

We were actively trading our SPX strategy that delivered $185.00 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 $193.72 in dividends last week. Our portfolio currently yields 5.89% at $77,399.40 market value.

 
Our projected annual dividend income in 10 years is $65,963.99 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 $5,883.34 annual dividend income ($490.28 monthly income). We are 8.92%% of our 10 year goal of $65,963.99 dividend income.

 
Future Divi on YOC week 20
 

The chart above shows how our future dividend income is based on the future yield on cost and what dividend income we may expect in the future. The expected dividend growth depends on what stocks we are adding 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 $135,128.05 to $132,071.97 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 buying shares of our interest again.

 
Stock holdings trading week 20
 

Our goal is to accumulate 100 shares of dividend growth stocks we liked 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 -8.82% monthly ROI in May 2022, totaling a 14.80% ROI YTD. We hope that in 2022 we exceed our 45% annual revenue selling options against dividend stocks target, although as of today, we are getting way behind this goal and it seems we will not achieve it at all.

Our entire account is down -26.04%.
 

Our options trading averaged $2,290.60 per month this year. If this trend continues, we are on track to make $27,487.20 trading options in 2022. As of today, we have made $11,453.00 trading options.
 

Old SPX trades repair

 

Last week we have not adjusted any of our old trades. The market is playing with me. When all the ods looked good and I had a chance to get rid of one bad trade, the market tanked ruining my chance to improve the position. Now I am back at the beginning of my attempt to fix the old trade.

We however 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 away from opening new aggressive trades.

 

Investing and trading report in charts

 

Account Net-Liq

 

TW Account trading Net-Liq week 20

 

Account Stocks holding

 
TW Account holdings week 20
Click here to see the entire portfolio
 

Last week, S&P 500 grew 34.87% since we opened our portfolio while our portfolio grew 0.94%. On YTD basis, the S&P 500 fell -29.90% and our portfolio -28.83%. We are outperforming the market although by a small percentage point.

The numbers above apply to our stock holdings only. Our overall account net-liq is down by -26.04% this year thanks to our options strategies that generated enough income to stay up a bit.
 

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 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 7.74% 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 44.23% of that goal.
 

Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 51.04% of this goal.

 

Investing and Trading Report – Options Monthly Income

 
TW Options Trading Income week 20
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Trading Income week 20
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 20
 

We planned to make $4,800.00 in dividend income in 2022. As of today, we received $1,987.44. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $5,883.34 a year.
 

TW Received vs Future Dividends week 20

 

Our account cumulative return

 

The chart below indicates our cumulative adjusted return since we started tracking this metric.
 

TW cumulative (overall) trading return wk 20
 

Here is the cumulative return for the year 2022:
 

TW cumulative (2022) trading return wk 20
 

Our win ratio overall:
 

TW trading win ratio (overall) wk 20
 

Our win ratio for 2022:
 

TW trading win ratio (2022) wk 20
 

As of today, our account overall cumulative return is -30.53% (note, data in this section are since March 13, 2021, only as that is the date we started tracking these metrics). Our 2022 cumulative return is -52.94%. That means we erased the entire 2021 revenue. That is a horrible result. But I am optimistic. As I mentioned above, the results are temporary as we are rolling our trades and these rolls cause realized losses while we have open unrealized gains. Once the open trades end (when this horrible market finally calms down), the gains will offset the losses.

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.

 
 




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Posted by Martin May 20, 2022
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2022 SPX put credit spreads trading review – week 20


I expected 2022 year to be slow and not as profitable trading as 2021 but what is happening this year is outstanding. Nevertheless, our SPX trading is doing well so far although it is very difficult trading. I am adjusting trades to get busted again. This is one of the reasons why as an investor and trader you must have enough capital to trade. You must be able to sustain markets like this one. With insufficient capital, you will be doomed to start closing your trades and pile up losses. I still have capital available but I am running low already and have to modify my trading approach.

First, I will not be opening new trades except those that are adjusting the old bad trades. Before, I suspended aggressive bullish trades and traded Friday trades only. Now I will not be opening these trades either.

The only approach I am taking now is converting busted trades to a structure that is called a “box” and eventually adding call spreads. When the addition delivers a credit, I use the credit to finance adjustments of other trades to keep the account floating.

So far, this strategy works and we could deliver $185 income this week. That brought our account up by +1.84% while SPX lost -3.05%.

Overall, the SPX account is up +184.78% since the beginning of this program, and we have $7,660 in unrealized gains.

 

Initial trade set ups

 

For my SPX strategy, I dedicated a $3,600 initial amount that will be used to trade SPX PCS strategy per week. If this amount is depleted, I will evaluate the strategy to determine whether to continue or change it. If I grow this amount, I will scale up the trading.
 

WHAT WILL WE TRADE?    
DAY DTE TYPE
MONDAY 7 DTE & 40 delta 10 wide Put Credit Spread
TUESDAY 30 DTE & 40 delta 10 wide Put Credit Spread
WEDNESDAY 7 DTE & 40 delta 10 wide Put Credit Spread
FRIDAY 60 DTE & 14 delta 10 wide Put Credit Spread
EVERY MONTH 120 DTE Put Debit Spread – HEDGE

 

Our SPX strategy is designed as a directional options trading. We are selling credit put spreads to collect premiums and hopefully, these spreads expire worthlessly or we buy them back for a small debit.

We use a set of indicators (mostly based on moving averages) and market sentiment that generates bullish signals. The trading is based on a “trend following strategy”. If we have a bullish signal and bullish trend, we open the trade. If we do not have a signal, we stay away.

We set the set of rules and alerts and backtested them. The backtesting software proved that the strategy was viable and returned good gains. We also tried to automate the decision-making as much as possible to have the trading as mechanical as possible. This helps eliminate our emotions. The decision-making was reduced to: “bullish signal present” – open a trade, “not present” – stay away. it worked well.

Then 2022 year came and put this strategy to a hard test in the violent market. The signals worked well, but we had old trades that got busted and didn’t have time to perform. So I had to evaluate the strategy. The original strategy was based on letting the trade expire in the money and take a loss. But I didn’t like it. I tested an option of rolling the trade rather than letting it be and I feel a lot more comfortable with that.

Rolling a trade is still a losing trade because we close the old trade for a loss and open a new trade for a credit that partially offsets the loss. We also add a credit call spread or widen the put spread to get more credit. I believe by managing these trades and offsetting them with an opposite, adjusted, or new trade will result in fewer losses and larger gains. And so far, this strategy works.

Here you can see all our trades:

 
SPX PCS account value
Click on the picture above to see the entire list.
 

We do not trade 0 DTE trades. This strategy is designed to be as passive as possible. You open a trade and let it run. You do not need to be glued to the computer all the time. The strategy takes advantage of the market’s historical behavior of going mostly up. Yes, there will be selloffs and corrections, even bear markets but over time, it goes up. And therefore our strategy is designed for this direction. The premise is, that if we have a bullish trend, we open a bullish spread and let it run. 80% or 90% of the time, it will be a winning trade. And if the trend is strong, we even open more aggressive trades (which is not the case today due to the market’s correction).

How much money you can trade?

As you can see in the table below, the highest amount of cash to trade this strategy is $19,190. That will allow for all adjustments, rolls, and comfortable trading without blowing your account. Can you trade less? Well, yes, I started with a $3,600 initial amount. But you need to be selective. You won’t trade all trades. You just trade the safest trades only (which is the Friday trade), especially in this market and when the market gets out of this mess you can start adding trades. And you do not compound. You must wait for the original trade to end before opening a new trade. This way the growth will be a lot slower and you collect less credit but you do not blow your account, mainly when you need to roll and you do not have money to do that (as the old busted trade will need more buying power which can be reduced by adding an offsetting trade that neutralizes the old trade, but you still will need that initial buying power).

 

Last week trading

 

Overall, the strategy resulted in a +$185.00 gain last week.
 

Initial account value (since inception: 12/07/2021): $3,600.00
Last week beginning value: $10,066.95
Last week ending value: $10,251.95 (+1.84%; total: +184.78%)
The highest capital requirements to trade this strategy: $19,190
Current capital at risk: $18,130
Unrealized Gain: $7,660 (+42.25%)
Realized Gain: $1,202 (+6.63%)
Total Gain: $8,862 (+48.88%)
Win Ratio: 65%
Average Winner: $252
Average Loser: $437

 

SPX PCS account value
SPX PCS account value
 
Our SPX net-liq decreased slightly last week. The market is volatile and selling too much and because of that, I am reducing our trading activity to just adjusting our existing trades.
 

SPX PCS account vs SPX
SPX PCS account vs SPX index net liq
 
Our account is slowly growing while the entire market is struggling. I am looking forward to this selling to end and the market resuming its bullish uptrend. We will be able to get into the more aggressive trades and boost our income significantly.

 

SPX PCS account vs SPX
SPX PCS account vs SPX index
 

If you want to receive trade alerts whenever we open a new SPX put credit spread or a hedge trade, you can subscribe to our service:

 

 

Note, if you wish to subscribe to multiple levels, you can do so by subscribing to one level only and then send us an email that you want to be added to other levels too.

Also, if you like this report, hit the like button so I know there is enough audience wanting to see this type of report. If you have any questions or want to see anything else about my SPX trading, do not hesitate to contact me or write a comment in the comments section. Thank you!

 
 




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Posted by Martin May 14, 2022
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2022 Week 19 investing and trading report


Last week the trading became even worse. Due to volatility in the markets, my margin shrunk to zero… That means I am pretty much in a full cash account unable to trade anything because I have no buying power. I have over $60,000 in cash but that is all locked by margin maintenance requirements. All I could do is to manage old trades and roll them to keep them safe – relatively. And rolling them is becoming costly. Most of them are no longer credit trades.

Trading options was debit trades for most of the time and we lost $3,390 rolling those trades.

Our Net-liq also dropped significantly by -3.92% last week and overall account is down -17.40% YTD. I hope, that when the market reverses and starts trading up again, this will change. I have not taken any physical losses by closing trades. All options trades were rolled, so currently, they show a realized loss but unrealized gain but that gain is starting to shrink. And I sold no stock positions. I was buying stocks during this market selloff.

 

Here is our investing and trading report:

 

Account Value: $86,439.52 -$3,387.16 -3.92%
Options trading results
Options Premiums Received: -$3,390.00    
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: -$5,221.00 -6.04%  
Options Premiums YTD: $13,058.00 +15.11%  
Dividend income results
Dividends Received: $14.84    
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: $26.48    
Dividends YTD: $1,793.72    
Portfolio metrics
Portfolio Yield: 5.84%    
Portfolio Dividend Growth: 11.67%    
Ann. Div Income & YOC in 10 yrs: $64,937.33 43.02%  
Ann. Div Income & YOC in 20 yrs: $2,710,424.20 1,795.65%  
Ann. Div Income & YOC in 25 yrs: $60,507,318.08 40,086.06%  
Ann. Div Income & YOC in 30 yrs: $4,887,996,129.40 3,238,294.01%  
Portfolio Alpha: 9.04%    
Sharpe Ratio: 4.23 EXCELLENT  
Portfolio Weighted Beta: 0.56    
CAGR: 404.87%    
AROC: 11.26%    
TROC: 11.34%    
Our 2022 Goal
2022 Dividend Goal: $4,800.00 37.37% In Progress
2022 Portfolio Value Goal: $151,638.03 57.00% In Progress
6-year Portfolio Value Goal: $175,000.00 49.39% In Progress
10-year Portfolio Value Goal: $1,000,000.00 8.64% In Progress

 

Dividend Investing and Trading Report

 
Last week we have received $14.84 in dividends bringing our May’s dividend income at $26.48.

Last week, we have not purchased any dividend stock.

 

 

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 you can see our dividend income per stock holding:

 
Annual Dividend Payout week 19

 

Growth stocks Investing and Trading Report

 

Last week, we have not purchased any growth stocks.

 

 

Options Investing and Trading Report

 
Last week we rolled our strangle trades to keep our account safe. Some of those rolls could have been avoided if I had enough cash reserves.

However, these adjustments delivered a loss of -$3,390.00 making our May options income -$5,221.00.

 

We were actively trading our SPX strategy that delivered -$85.00 loss.

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 $14.84 in dividends last week. Our portfolio currently yields 5.84% at $86,439.52 market value.

 
Our projected annual dividend income in 10 years is $64,937.33 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 $5,849.98 annual dividend income ($487.50 monthly income). We are 9.01% of our 10 year goal of $64,937.33 dividend income.

 
Future Divi on YOC week 19
 

The chart above shows how our future dividend income is based on the future yield on cost and what dividend income we may expect in the future. The expected dividend growth depends on what stocks we are adding 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 $142,021.49 to $135,128.05 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 buying shares of our interest again.

 
Stock holdings trading week 19
 

Our goal is to accumulate 100 shares of dividend growth stocks we liked 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 -6.04% monthly ROI in May 2022, totaling a 15.11% ROI YTD. We hope that in 2022 we exceed our 45% annual revenue selling options against dividend stocks target, although as of today, we are getting way behind this goal.

Our entire account is down -17.40%.
 

Our options trading averaged $2,611.60 per month this year. If this trend continues, we are on track to make $31,339.20 trading options in 2022. As of today, we have made $13,058.00 trading options.
 

Old SPX trades repair

 

Last week we have not adjusted any of our old trades. The market is playing with me. When all the ods looked good and I had a chance to get rid of one bad trade, the market tanked ruining my chance to improve the position. Now I am back at the beginning of my attempt to fix the old trade.

We however 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 away from opening new aggressive trades.

 

Investing and trading report in charts

 

Account Net-Liq

 

TW Account trading Net-Liq week 19

 

Account Stocks holding

 
TW Account holdings week 19
 

Last week, S&P 500 grew 39.10% since we opened our portfolio while our portfolio grew 4.23%. On YTD basis, the S&P 500 fell -25.66% and our portfolio -25.55%. We are outperforming the market although by a small percentage point.

The numbers above apply to our stock holdings only. Our overall account net-liq is down by -17.40% this year thanks to our options strategies that generated enough income to stay up a bit.
 

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 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 8.64% 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 49.39% of that goal.
 

Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 57.00% of this goal.

 

Investing and Trading Report – Options Monthly Income

 
TW Options Trading Income week 19
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Trading Income week 19
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 19
 

We planned to make $4,800.00 in dividend income in 2022. As of today, we received $1,793.72. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $5,849.98 a year.
 

<a href=”https://hellosuckers.net/wp-content/uploads/2022/05/2022-TW-received-future-dividends-wk-19.png rel=”noopener noreferrer” target=”_blank”>TW Received vs Future Dividends week 19

 

Our account cumulative return

 

The chart below indicates our cumulative adjusted return since we started tracking this metric.
 

TW cumulative (overall) trading return wk 19
 

Here is the cumulative return for the year 2022:
 

TW cumulative (2022) trading return wk 19
 

Our win ratio overall:
 

TW trading win ratio (overall) wk 19
 

Our win ratio for 2022:
 

TW trading win ratio (2022) wk 19
 

As of today, our account overall cumulative return is -22.42% (note, data in this section are since March 13, 2021, only as that is the date we started tracking these metrics). Our 2022 cumulative return is -47.45%. That means we erased the entire 2021 revenue as of today. That is a horrible result. But I am optimistic. As I mentioned above, the results are temporary as we are rolling our trades and these rolls cause realized losses while we have open unrealized gains. Once the open trades end (when this horrible market finally calms down), the gains will offset the losses.

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.

 
 




We all want to hear your opinion on the article above:
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Posted by Martin May 13, 2022
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2022 SPX put credit spreads trading review – week 19


This selling is becoming frustrating. Our SPX trading strategy held relatively well, mostly because I didn’t trade much. All I did was sit tight and manage trades that needed adjustment. I only opened Friday trade and used the collected credit to help offset another trade that needed adjustment. Next week, I will be doing the same.

Our overall SPX account is up +179.64% since the beginning of this program, and we have $475 in unrealized losses. At some point in the near future, we will have to offset those losses.

 

Initial trade set ups

 

For my SPX strategy, I dedicated a $3,600 initial amount that will be used to trade SPX PCS strategy per week. If this amount is depleted, I will evaluate the strategy to determine whether to continue or change it. If I grow this amount, I will scale up the trading.
 

WHAT WILL WE TRADE?    
DAY DTE TYPE
MONDAY 7 DTE & 40 delta 10 wide Put Credit Spread
TUESDAY 30 DTE & 40 delta 10 wide Put Credit Spread
WEDNESDAY 7 DTE & 40 delta 10 wide Put Credit Spread
FRIDAY 60 DTE & 14 delta 10 wide Put Credit Spread
EVERY MONTH 120 DTE Put Debit Spread – HEDGE

 

Our SPX strategy is designed as a directional options trading. We are selling credit put spreads to collect premiums and hopefully, these spreads expire worthlessly or we buy them back for a small debit.

We use a set of indicators (mostly based on moving averages) and market sentiment that generates bullish signals. The trading is based on a “trend following strategy”. If we have a bullish signal and bullish trend, we open the trade. If we do not have a signal, we stay away.

We set the set of rules and alerts and backtested them. The backtesting software proved that the strategy was viable and returned good gains. We also tried to automate the decision-making as much as possible to have the trading as mechanical as possible. This helps eliminate our emotions. The decision-making was reduced to: “bullish signal present” – open a trade, “not present” – stay away. it worked well.

Then 2022 year came and put this strategy to a hard test in the violent market. The signals worked well, but we had old trades that got busted and didn’t have time to perform. So I had to evaluate the strategy. The original strategy was based on letting the trade expire in the money and take a loss. But I didn’t like it. I tested an option of rolling the trade rather than letting it be and I feel a lot more comfortable with that.

Rolling a trade is still a losing trade because we close the old trade for a loss and open a new trade for a credit that partially offsets the loss. We also add a credit call spread or widen the put spread to get more credit. I believe by managing these trades and offsetting them with an opposite, adjusted, or new trade will result in fewer losses and larger gains. And so far, this strategy works.

Here you can see all our trades:

 
SPX PCS account value
Click on the picture above to see the entire list.
 

We do not trade 0 DTE trades. This strategy is designed to be as passive as possible. You open a trade and let it run. You do not need to be glued to the computer all the time. The strategy takes advantage of the market’s historical behavior of going mostly up. Yes, there will be selloffs and corrections, even bear markets but over time, it goes up. And therefore our strategy is designed for this direction. The premise is, that if we have a bullish trend, we open a bullish spread and let it run. 80% or 90% of the time, it will be a winning trade. And if the trend is strong, we even open more aggressive trades (which is not the case today due to the market’s correction).

How much money you can trade?

As you can see in the table below, the highest amount of cash to trade this strategy is $19,190. That will allow for all adjustments, rolls, and comfortable trading without blowing your account. Can you trade less? Well, yes, I started with a $3,600 initial amount. But you need to be selective. You won’t trade all trades. You just trade the safest trades only (which is the Friday trade), especially in this market and when the market gets out of this mess you can start adding trades. And you do not compound. You must wait for the original trade to end before opening a new trade. This way the growth will be a lot slower and you collect less credit but you do not blow your account, mainly when you need to roll and you do not have money to do that (as the old busted trade will need more buying power which can be reduced by adding an offsetting trade that neutralizes the old trade, but you still will need that initial buying power).

 

Last week trading

 

Overall, the strategy resulted in a -$85.00 loss last week.
 

Initial account value (since inception: 12/07/2021): $3,600.00
Last week beginning value: $10,151.95
Last week ending value: $10,066.95 (-0.84%; total: +179.64%)
The highest capital requirements to trade this strategy: $19,190
Current capital at risk: $17,475
Unrealized Gain: -$475 (-2.72%)
Realized Gain: $6,807 (+38.95%)
Total Gain: $6,332 (+36.23%)
Win Ratio: 68%
Average Winner: $243
Average Loser: $322

 

SPX PCS account value
SPX PCS account value
 
Our SPX net-liq decreased slightly last week. The market is volatile and selling too much and because of that, I am reducing our trading activity to just adjusting our existing trades, and opening Friday’s trades, only. We will evaluate case by case which trade to take.
 

SPX PCS account vs SPX
SPX PCS account vs SPX index net liq
 
Our account is slowly growing while the entire market is struggling. I am looking forward to this selling to end and the market resuming its bullish uptrend. We will be able to get into the more aggressive trades and boost our income significantly.

 

SPX PCS account vs SPX
SPX PCS account vs SPX index
 

If you want to receive trade alerts whenever we open a new SPX put credit spread or a hedge trade, you can subscribe to our service:

 

 

Note, if you wish to subscribe to multiple levels, you can do so by subscribing to one level only and then send us an email that you want to be added to other levels too.

Also, if you like this report, hit the like button so I know there is enough audience wanting to see this type of report. If you have any questions or want to see anything else about my SPX trading, do not hesitate to contact me or write a comment in the comments section. Thank you!

 
 




We all want to hear your opinion on the article above:
No Comments



Posted by Martin May 07, 2022
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2022 Week 18 investing and trading report


The first week of May trading hasn’t started very well and I have very low expectations for this month. I am a bit skeptical that it would improve. Our buying power is extremely depressed which prevents me from trading and investing in this market. As of today, I have over $68,000 in cash that I cannot use because it is used for margin collateral. Given that our account’s Net-Liq is $90,000 it means that I am almost in a cash account and not a margin account. It is what the broker and their clearance company did to my account – raised margin requirements to a level that is almost equal to a cash account. A result of high volatility and fear in the markets.

Our Net-liq increased slightly by +2.13% last week and overall account is down -14.16% YTD. I hope, that when the market reverses and starts trading up again, this will change. I have not taken any physical losses by closing trades. All options trades were rolled, so currently, they show a realized loss but unrealized gain. And I sold no stock positions. I was buying stocks during this market selloff.

 

Here is our investing and trading report:

 

Account Value: $89,826.68 $1,917.74 2.13%
Options trading results
Options Premiums Received: -$1,831.00    
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: -$1,831.00 -2.04%  
Options Premiums YTD: $16,448.00 +18.31%  
Dividend income results
Dividends Received: $11.64    
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: $11.64    
Dividends YTD: $1,778.88    
Portfolio metrics
Portfolio Yield: 5.44%    
Portfolio Dividend Growth: 11.61%    
Ann. Div Income & YOC in 10 yrs: $57,839.94 37.53%  
Ann. Div Income & YOC in 20 yrs: $2,016,299.41 1,308.18%  
Ann. Div Income & YOC in 25 yrs: $38,260,839.66 24,823.66%  
Ann. Div Income & YOC in 30 yrs: $2,469,206,559.48 1,602,022.93%  
Portfolio Alpha: 12.72%    
Sharpe Ratio: 2.86 GREAT  
Portfolio Weighted Beta: 0.50    
CAGR: 416.34%    
AROC: 13.73%    
TROC: 9.24%    
Our 2022 Goal
2022 Dividend Goal: $4,800.00 37.06% In Progress
2022 Portfolio Value Goal: $151,638.03 59.24% In Progress
6-year Portfolio Value Goal: $175,000.00 51.33% In Progress
10-year Portfolio Value Goal: $1,000,000.00 8.98% In Progress

 

Dividend Investing and Trading Report

 
Last week we have received $11.64 in dividends bringing our May’s dividend income at $11.64.

Last week, we have not purchased any dividend stock.

 

 

If the market keeps going lower, I will be adding more shares to our portfolio (if my buying power permits as I am low on available funds already).

Here you can see our dividend income per stock holding:

 
Annual Dividend Payout week 18

 

Growth stocks Investing and Trading Report

 


Last week we bought the following growth stocks and funds:
 

  • 10 shares of ICSH @ $50.07

 

 

Options Investing and Trading Report

 
Last week we rolled our strangle trades to keep our account safe. Some of those rolls could have been avoided if I had enough cash reserves.

However, these adjustments delivered a loss of -$1,831.00 making our May options income -$1,831.00.

 

We were actively trading our SPX strategy that delivered $50.00 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 $11.64 in dividends last week. Our portfolio currently yields 5.44% at $89,826.68 market value.

 
Our projected annual dividend income in 10 years is $57,839.94 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 $5,903.74 annual dividend income ($491.98 monthly income). We are 10.21% of our 10 year goal of $57,839.94 dividend income.

 
Future Divi on YOC week 18
 

The chart above shows how our future dividend income is based on the future yield on cost and what dividend income we may expect in the future. The expected dividend growth depends on what stocks we are adding 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 $141,476.34 to $142,021.49 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 buying shares of our interest again.

 
Stock holdings trading week 18
 

Our goal is to accumulate 100 shares of dividend growth stocks we liked 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 -2.04% monthly ROI in May 2022, totaling a 18.31% ROI YTD. We hope that in 2022 we exceed our 45% annual revenue selling options against dividend stocks target, although as of today, we are getting behind this goal.

Our entire account is down -14.16%.
 

Our options trading averaged $3,289.60 per month this year. If this trend continues, we are on track to make $39,475.20 trading options in 2022. As of today, we have made $16,448.00 trading options.
 

Old SPX trades repair

 

Last week we have not adjusted any of our old trades. The market is playing with me. When all the ods looked good and I had a chance to get rid of one bad trade, the market tanked ruining my chance to improve the position. Now I am back at the beginning of my attempt to fix the old trade.

We however 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 away from opening new aggressive trades.

 

Investing and trading report in charts

 

Account Net-Liq

 

TW Account trading Net-Liq week 18

 

Account Stocks holding

 
TW Account holdings week 18
 

Last week, S&P 500 grew 42.54% since we opened our portfolio while our portfolio grew 7.60%. On YTD basis, the S&P 500 fell -22.22% and our portfolio -22.17%. We are outperforming the market although by a small percentage point.

The numbers above apply to our stock holdings only. Our overall account net-liq is down by -14.16% this year thanks to our options strategies that generated enough income to stay up a bit.
 

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 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 8.98% 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 51.33% of that goal.
 

Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 59.24% of this goal.

 

Investing and Trading Report – Options Monthly Income

 
TW Options Trading Income week 18
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Trading Income week 18
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 18
 

We planned to make $4,800.00 in dividend income in 2022. As of today, we received $1,778.88. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $5,903.74 a year.
 

TW Received vs Future Dividends week 18

 

Our account cumulative return

 

The chart below indicates our cumulative adjusted return since we started tracking this metric.
 

TW cumulative (overall) trading return wk 18
 

Here is the cumulative return for the year 2022:
 

TW cumulative (2022) trading return wk 18
 

Our win ratio overall:
 

TW trading win ratio (overall) wk 18
 

Our win ratio for 2022:
 

TW trading win ratio (2022) wk 18
 

As of today, our account overall cumulative return is -14.43% (note, data in this section are since March 13, 2021, only as that is the date we started tracking these metrics). Our 2022 cumulative return is -42.03%. That means we erased the entire 2021 revenue as of today. That is a horrible result. But I am optimistic. As I mentioned above, the results are temporary as we are rolling our trades and these rolls cause realized losses while we have open unrealized gains. Once the open trades end (when this horrible market finally calms down), the gains will offset the losses.

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.

 
 




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Posted by Martin May 07, 2022
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2022 SPX put credit spreads trading review – week 18


For 18 weeks ur SPX PCS strategy performed well while the market was selling off. It was not an easy journey this year. When I started this strategy at the end of 2021 I hoped for a better start and large profits. The market had a different opinion.

Despite heavy selling, we finished up by 0.49% while SPX lost -0.21%. However, I didn’t trade much, rather preserving cash and waiting. I only opened a Friday’s trade based on our plan and used the credit to adjust old trades that got in trouble during the last 18 weeks. Until this market recovers, I will be trading Friday’s trades only as these are the most conservative ones and have the best risk-reward ratio. The market is so depressed and even if it sells more in the upcoming weeks, our Friday’s trade strikes will be so low that it will be unlikely to lose.

Our overall SPX account is up +182.00% since the beginning of this program, and we have $785 in unrealized gains. That is a good sign because the account is set to grow in the near future.

 

Initial trade set ups

 

For my SPX strategy, I dedicated a $3,600 initial amount that will be used to trade SPX PCS strategy per week. If this amount is depleted, I will evaluate the strategy to determine whether to continue or change it. If I grow this amount, I will scale up the trading.
 

WHAT WILL WE TRADE?    
DAY DTE TYPE
MONDAY 7 DTE & 40 delta 10 wide Put Credit Spread
TUESDAY 30 DTE & 40 delta 10 wide Put Credit Spread
WEDNESDAY 7 DTE & 40 delta 10 wide Put Credit Spread
FRIDAY 60 DTE & 14 delta 10 wide Put Credit Spread
EVERY MONTH 120 DTE Put Debit Spread – HEDGE

 

Our SPX strategy is designed as a directional options trading. We are selling credit put spreads to collect premiums and hopefully, these spreads expire worthlessly or we buy them back for a small debit.

We use a set of indicators (mostly based on moving averages) and market sentiment that generates bullish signals. The trading is based on a “trend following strategy”. If we have a bullish signal and bullish trend, we open the trade. If we do not have a signal, we stay away.

We set the set of rules and alerts and backtested them. The backtesting software proved that the strategy was viable and returned good gains. We also tried to automate the decision-making as much as possible to have the trading as mechanical as possible. This helps eliminate our emotions. The decision-making was reduced to: “bullish signal present” – open a trade, “not present” – stay away. it worked well.

Then 2022 year came and put this strategy to a hard test in the violent market. The signals worked well, but we had old trades that got busted and didn’t have time to perform. So I had to evaluate the strategy. The original strategy was based on letting the trade expire in the money and take a loss. But I didn’t like it. I tested an option of rolling the trade rather than letting it be and I feel a lot more comfortable with that.

Rolling a trade is still a losing trade because we close the old trade for a loss and open a new trade for a credit that partially offsets the loss. We also add a credit call spread or widen the put spread to get more credit. I believe by managing these trades and offsetting them with an opposite, adjusted, or new trade will result in fewer losses and larger gains. And so far, this strategy works.

Here you can see all our trades:

 
SPX PCS account value
Click on the picture above to see the entire list.
 

We do not trade 0 DTE trades. This strategy is designed to be as passive as possible. You open a trade and let it run. You do not need to be glued to the computer all the time. The strategy takes advantage of the market’s historical behavior of going mostly up. Yes, there will be selloffs and corrections, even bear markets but over time, it goes up. And therefore our strategy is designed for this direction. The premise is, that if we have a bullish trend, we open a bullish spread and let it run. 80% or 90% of the time, it will be a winning trade. And if the trend is strong, we even open more aggressive trades (which is not the case today due to the market’s correction).

How much money you can trade?

As you can see in the table below, the highest amount of cash to trade this strategy is $19,190. That will allow for all adjustments, rolls, and comfortable trading without blowing your account. Can you trade less? Well, yes, I started with a $3,600 initial amount. But you need to be selective. You won’t trade all trades. You just trade the safest trades only (which is the Friday trade), especially in this market and when the market gets out of this mess you can start adding trades. And you do not compound. You must wait for the original trade to end before opening a new trade. This way the growth will be a lot slower and you collect less credit but you do not blow your account, mainly when you need to roll and you do not have money to do that (as the old busted trade will need more buying power which can be reduced by adding an offsetting trade that neutralizes the old trade, but you still will need that initial buying power).

 

Last week trading

 

Overall, the strategy resulted in a $50.00 gain last week.
 

Initial account value (since inception: 12/07/2021): $3,600.00
Last week beginning value: $10,101.95
Last week ending value: $10,151.95 (+0.49%; total: +182.00%)
The highest capital requirements to trade this strategy: $19,190
Current capital at risk: $17,215
Unrealized Gain: $785 (4.56%)
Realized Gain: $5,652 (+32.83%)
Total Gain: $6,437 (+37.39%)
Win Ratio: 68%
Average Winner: $220
Average Loser: $299

 

SPX PCS account value
SPX PCS account value
 
Our SPX net-liq increased slightly last week creating a new all-time high. But the market is volatile too much and our trading activity will be adjusting our existing trades, and opening Friday’s trades, only. We will evaluate case by case which trade to take.
 

SPX PCS account vs SPX
SPX PCS account vs SPX index net liq
 
However, it is nice to see that our account is growing while the market is struggling, going sideways or down. Although I must admit, trading in this year’s environment is very frustrating.

 

SPX PCS account vs SPX
SPX PCS account vs SPX index
 

If you want to receive trade alerts whenever we open a new SPX put credit spread or a hedge trade, you can subscribe to our service:

 

 

Note, if you wish to subscribe to multiple levels, you can do so by subscribing to one level only and then send us an email that you want to be added to other levels too.

Also, if you like this report, hit the like button so I know there is enough audience wanting to see this type of report. If you have any questions or want to see anything else about my SPX trading, do not hesitate to contact me or write a comment in the comments section. Thank you!

 
 




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