I can’t believe that another month is behind us again. It was again a successful month to our investing and trading. We added income from options trading of $3,116.00 but we also added new shares to our portfolio and started consolidating it (finally, we started creating cash reserves which were depleted during 2022 bear market). Our dividend income was also very positive as we added $848.65 in dividends last month.
Our cash to buying power dropped a bit as we continued reinvesting our proceeds:
Our options trading delivered $3,116.00 gain last month (4.05%). Our net-liq value increased by 8.40% to $76,926.21 value. Our overall account is up 23.56% YTD and -26.49% from when the bear market started in January 2022.
Here is our investing and trading report:
| Account Value: |
$76,926.21 |
+$6,462.68 |
+8.40% |
| Options trading results |
| Options Premiums Received: |
+$3,116.00 |
|
|
| 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% |
|
| Options Premiums YTD: |
+$28,997.00 |
+37.69% |
|
| Dividend income results |
| Dividends Received: |
+$848.65 |
|
|
| 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 |
|
|
| Dividends YTD: |
+$4,002.24 |
|
|
| Portfolio Equity |
| Portfolio Equity: |
$216,906.24 |
+$28,600.25 |
+15.19% |
| Portfolio metrics |
| Portfolio Yield: |
5.66% |
|
|
| Portfolio Dividend Growth: |
23.02% |
|
|
| Ann. Div Income & YOC in 10 yrs: |
$431,557.94 |
196.14% |
|
| Ann. Div Income & YOC in 20 yrs: |
$10,675,001,955.09 |
4,851,802.15% |
|
| Ann. Div Income & YOC in 25 yrs: |
$331,788,509,367,599.00 |
150,798,305,198.86% |
|
| Ann. Div Income & YOC in 30 yrs: |
$1,059,557,329,899,100,000,000.00 |
481,570,172,259,309,000.00% |
|
| Portfolio Alpha: |
31.93% |
|
|
| Sharpe Ratio: |
5.85 |
EXCELLENT |
|
| Portfolio Weighted Beta: |
0.52 |
|
|
| CAGR: |
218.27% |
|
|
| AROC: |
38.91% |
|
|
| TROC: |
9.84% |
|
|
| Our 2023 Goal |
| 2023 Dividend Goal: |
$8,000.00 |
50.03% |
In Progress |
| 2023 Options Income Goal: |
$70,000 |
41.42% |
In Progress |
| 2023 Portfolio Value Goal: |
$96,532.51 |
79.69% |
In Progress |
| 6-year Portfolio Value Goal: |
$175,000.00 |
43.96% |
In Progress |
| 10-year Portfolio Value Goal: |
$1,000,000.00 |
7.69% |
In Progress |
Dividend Investing and Trading Report
In June 2023 we have received $848.65 in dividends bringing our dividend income at $4,002.24.
Last month, we bought these dividend growth stocks:
– 110 shares of IEP @ $22.27
As IEP continued sharply lower we started adding shares of this fund to our portfolio. We now own 250 shares of this company. We are receiving a a juicy dividend and sell options around this position.
– 50 shares of ICSH @ $50.12
We started saving cash in this fund as the market is becoming overbought we want to have cash to be buying new companies when the market crashes again. We want to have cash reserves to cover the margin and new purchases.
– 100 shares of PSTL @ $14.90
We added this fund to our holdings. We now hold 100 shares and we started selling covered calls.
– 10 shares of ABBV @ $137.98
Investors are dumping ABBV on a fear of expired Humira drug and competition providing a biosimilar drug at 85% discount. However, if you read about it a bit, you will learn that it is not that easy to suddenly switch from the original drug to the generic substitution due to agreements (and huge discounts) with insurance companies. So, unless the insurer has means to switch all its clients to the new generic drug, the process will not be as easy as it seems. Switching to a new drug would mean losing discounts and promotions and it could be very costly for the insurance and patients to do so. So, hold your horses. This ain’t gonna happen overnight. And while other are panicking, I am buying more shares.
– 5 shares of VICI @ $32.24
I think this is a grossly underrated stock, so I am adding more shares before investors finally catch up. It still may take years before they realize how wrong they were about VICI and when that happens, hopefully, I will be fully invested.
My 100 shares of WBA were called away at $32.50 a share (I was selling covered calls and they end up in the money) right before earnings. Now the stock dropped to $28 a share. I sold 30 strike puts and hopefully to buy back at 30 (or less as I will be rolling the puts down if the stock continues dropping).
Here is a chart of our account equity showing our accumulation goal and the value of all stocks in our account. It shows a nice upward-sloping chart as our equities grow. This is a result of our options trading and using premiums to buy dividend stocks:
And here you can see the dividend income those equities pay us every year:
Growth stocks Investing and Trading Report
In June 2023, we bought the following growth stocks and funds:
- 32 shares of CROX @ $107.52
I am accumulating this stock now to reach 100 shares after which we will start selling covered calls. I now own 32 shares.
-
40 shares of TMUS @ $130.54
My shares of TMUS were called away last month at $155 a share. I started selling puts at $135 a share but as the stock kept falling (who knows why) I rolled the puts down and converted the position to a spread and added a call spread. At the same time, I decided to accumulate 100 shares slower and use verticals to generate income. I plan on accumulating 100 shares again.
Options Investing and Trading Report
In June 2023, our options trading delivered a gain of $3,116.00. I used this income to adjust some of the SPX trades that needed adjustment so they can expire worthless. I also opened a few new SPX trades.
Expected Future Dividend Income
We received $848.65 in dividends last month. Our portfolio currently yields 5.66% at $76,926.21 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 $733.00 (the real income is $333.52, 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 $431,557.94, 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 $8,795.99 annual dividend income ($733.00 monthly income). We are 2.04% of our 10 year goal of $431,557.94 dividend income.
The chart above shows how our future dividend income is based on the future yield on cost and what dividend income we may expect. The expected dividend growth depends on what stocks we add to our portfolio and the stocks’ 3 years’ average dividend growth rate. It is interesting to see what passive income we may enjoy 10, 20, 25, or 30 years from now.
Market value of our holdings
Our non-adjusted stock holdings market value increased from $188,305.99 to $216,906.24 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.
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 4.05% monthly ROI in June 2023, totaling a 37.69% ROI YTD. We plan to exceed our 45% annual revenue goal in selling options against dividend stocks. But as of today, we may not be able to achieve that goal as we use a lot of income for repairs of trades that got inn trouble during 2022 bear market. Although, we are slowly crawling out of the hole, our performance may suffer this year.
Our entire account is still down -26.49% from when the bear market started. However, in 2023 our account is up 23.56% 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 again 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 $4,832.83 per month this year. If this trend continues, we will make $57,994.00 in trading options in 2023. As of today, we have made $28,997.00 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
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
Last month, S&P 500 grew 54.03% since we opened our portfolio while our portfolio grew 23.77%. On YTD basis, the S&P 500 grew 21.30% and our portfolio 14.29%. We are underperforming market.
The numbers above apply to our stock holdings adjusted by options premiums.
Stock holdings Growth YTD
Our stock holdings are underperforming the market. Hopefully, this trend will improve, and we will do better than S&P 500.
Our 10-year goal is to grow this account to $1,000,000.00 value in ten years. We are in year two, and we accomplished 7.69% 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 43.96% of that goal.
Our 2023 year goal is to grow this account to a $96,532.51, and today we accomplished 79.69% of this goal.
Investing and Trading Report – Options Monthly Income
Investing and Trading Report – Options Annual Income
Our dividend goal and future dividends
We planned to make $8,000.00 in dividend income in 2023. As of today, we received $4,002.24. We also accumulated enough shares to start making $8,795.99 a year. Our monthly projected dividend income is $733.00, and our current monthly dividend income is $333.52.
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