March is over. And our Investing and Trading are beginning to see improvement again after the bear market of 2022. People still do not believe that the bear is over and keep creeping all over social media how much we are going to crash soon, TV shows pull out from their asses doomers like Roubini predicting further doom. Though trading may be choppy, we are on the path to recovery. No bear market lasts forever, despite how much you wish for it because you spent your entire inheritance on buying puts.
Tasty Trade finally fixed their BP (buying power) issue, so my account once again shows the correct buying power and I no longer have to go to the tech support for help rolling trades and I can move forward trading full speed.
Last month was still a bit hectic. I was busy at work so I couldn’t trade and report much, but I spent the month adjusting my trades – mostly rolling my SPX spreads that got in trouble during 2022. Thus, March will be negative. But my trades will be in better shape. And our account is also getting in better shape:
Our options trading delivered -$1,462.00 gain last month (-2.05%). Our net-liq value decreased by -1.77% to $71,182.72 value. Our overall account is up 14.34% YTD and -31.98% from when the bear market started in January 2022.
Here is our investing and trading report:
| Account Value: |
$71,182.72 |
-$1,282.33 |
-1.80% |
| Options trading results |
| Options Premiums Received: |
-$1,462.00 |
|
|
| 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% |
|
| Options Premiums YTD: |
+$2,758.00 |
+3.87% |
|
| Dividend income results |
| Dividends Received: |
+$482.14 |
|
|
| 01 January 2023 Dividends: |
+$407.13 |
|
|
| 02 February 2023 Dividends: |
+$731.21 |
|
|
| 03 March 2023 Dividends: |
+$482.14 |
|
|
| Dividends YTD: |
+$1,620.48 |
|
|
| Portfolio Equity |
| Portfolio Equity: |
$199,268.73 |
+$897.15 |
+0.45% |
| Portfolio metrics |
| Portfolio Yield: |
5.82% |
|
|
| Portfolio Dividend Growth: |
22.13% |
|
|
| Ann. Div Income & YOC in 10 yrs: |
$390,197.91 |
183.55% |
|
| Ann. Div Income & YOC in 20 yrs: |
$5,816,110,304.43 |
2,735,893.94% |
|
| Ann. Div Income & YOC in 25 yrs: |
$100,401,216,997,254.00 |
47,228,657,508.53% |
|
| Ann. Div Income & YOC in 30 yrs: |
$140,811,496,634,662,000,000.00 |
66,237,622,876,666,900.00% |
|
| Portfolio Alpha: |
-2.02% |
|
|
| Sharpe Ratio: |
7.00 |
EXCELLENT |
|
| Portfolio Weighted Beta: |
0.54 |
|
|
| CAGR: |
236.33% |
|
|
| AROC: |
4.07% |
|
|
| TROC: |
4.92% |
|
|
| Our 2023 Goal |
| 2023 Dividend Goal: |
$8,000.00 |
20.26% |
In Progress |
| 2023 Options Income Goal: |
$70,000 |
3.94% |
In Progress |
| 2023 Portfolio Value Goal: |
$96,532.51 |
73.74% |
In Progress |
| 6-year Portfolio Value Goal: |
$175,000.00 |
40.68% |
In Progress |
| 10-year Portfolio Value Goal: |
$1,000,000.00 |
7.12% |
In Progress |
Dividend Investing and Trading Report
In March 2023 we have received $482.14 in dividends bringing our dividend income at $1,620.48.
Last month, we bought these dividend growth stocks:
– 100 shares of JXN @ $43.90
We now own 100 shares and we started selling covered calls. Options for this stock are not much traded so we are selling longer-dated calls.
– We sold 200 shares of QYLD. I no longer think it is a viable investment. The price is going down and dividends are tied to the price, so the dividends were going lower too.
– We also sold 100 shares of Ford (F). It was a mistake from day one. But I got sucked in the EV mania and thought Frod would be the winner. Bullshit.
After selling these shares, we bought:
- 107 shares of MAIN @ $39.55
This purchase brought our holdings to 207 shares. We started selling an additional contract of covered calls.
– 100 shares of MPW @ $7.91
We now own 200 shares and we added an additional covered calls contract.
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 March 2023, we purchased no growth stocks.
Options Investing and Trading Report
In March 2023, our options trading delivered a loss of -$1,462.00. This was a result of adjusting our trades during volatile days when we needed to maintain buying power and also roll the trades. So although technically, it is a realized loss, I consider these losses to be paper losses because I opened new offsetting trades “to keep the music playing.”
We were actively trading our SPX strategy that delivered $3,971.00 gain. Our SPX trading is improving rapidly too. Many of our trades got slammed in 2022 and instead of closing these trades for pretty large losses, I decided to use a rather unorthodox strategy. Many people will probably disagree with me and despise it outright, but the strategy works well for me. I open a “box” trade that delivers a lot of credit and use that credit to roll trades in trouble. And I keep rolling until the trade is safe and expires. All I do is maintain a positive balance between credit received from the “boxes” and spent on rolls.
Expected Future Dividend Income
We received $482.14 in dividends last month. Our portfolio currently yields 5.82% at $71,182.72 market value.
Our projected annual dividend income in 10 years is $390,197.91, 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 $7,440.64 annual dividend income ($620.05 monthly income). We are 1.91% of our 10 year goal of $390,197.91 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 $198,371.59 to $199,268.73 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 -2.05% monthly ROI in March 2023, totaling a 3.87% ROI YTD. We plan to exceed our 45% annual revenue goal in selling options against dividend stocks.
Our entire account is still down -31.98% from when the bear market started. However, in 2023 our account is up 14.34% YTD.
Our trading averaged $919.33 per month this year. If this trend continues, we will make $11,032.00 in trading options in 2023. As of today, we have made $2,758.00 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.
Old SPX trades repair
We traded our SPX put credit spread strategy, which you will be able to review in in our next post. The SPX strategy provided $3,971.00 income (8.38%) while SPX delivered +4.00%.
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 42.06% since we opened our portfolio while our portfolio grew 14.57%. On YTD basis, the S&P 500 grew 9.33% and our portfolio 5.09%. We are underperforming the 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 stay, and we will constantly do better than S&P 500.
Our 10-year goal is to grow this account to $1,000,000.00 value in ten years. We are in year two, and we accomplished 7.12% of that goal.
Our 6-year goal is to reach $175,000 account value to be eligible for portfolio margin (PM), and today we accomplished 40.68% of that goal.
Our 2023 year goal is to grow this account to a $96,532.51, and today we accomplished 73.74% 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 $1,620.48. We also accumulated enough shares to start making $7,440.64 a year. Our monthly projected dividend income is $620.05, and our current monthly dividend income is $135.04.
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