Posted by Martin January 29, 2022
1 Comment

HFEA January 2022 strategy report

I cannot believe that January is over. And it was a horrible month for our HFEA strategy. The HFEA lost ground amidst the selloff. I think it was a rare occurrence as our TMF protection was not protecting the SPXL holdings at all. Both leveraged ETFs were losing money. Shouldn’t TMF (bonds) be going up during market selloff? It didn’t go up this time. That indicates investors were fleeing from bonds too.

Originally, I dedicated $15,000 for 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 rebalancing quarterly and our next rebalancing will occur in March 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* – 45%/55% SPXL/TMF
Rebalancing frequency: Quarterly*
Return (total / YTD): -6.87%/-6.87%
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

Approach: 45% SPXL, 55% 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%

Our HFEA strategy lost -14.73% in January 2022 while the entire market lost -6.95%.

HFEA charts

Strategy Net liquidation value

Strategy vs SPY Net liquidation value

Strategy performance vs. SPY

The markets may be finding support at the current levels ($4,315). If we are seeing a bottom and reversal, the strategy should start performing well from now on. Let’s see what February brings.

We all want to hear your opinion on the article above:
1 Comment

Posted by Martin January 24, 2022
No Comments

Did you sell everything today? Psychology and stupidity of retail investors.

Did you join the retail investors today and sold everything? If you are wondering what drove the market today, you no longer have to. It was retail investors according to Blomberg and data from brokerage houses and their order flow reports. Today’s trading in the stock market was a typical view into the soul of mom and pops acting irrationally, and I hope, I really do, that you didn’t join them. If you read my newsletters, I wrote, many times, that the selling is not fundamentally justified. Not at this level and this speed. What we have witnessed was a pure irrational panic selling. Nothing more.

What has happened? Retail investors simply dumped their stocks just to see them rebound and rally without them when big money picked the cheap stocks and bought them.

It was the retail investors who were left holding the bag behind left behind without their shares. Now, unless the market revisits those lows, they will be buying back at a lot higher prices than they sold. A typical retail stupidity of buying high, selling low.

This chart shows how retail investors’ selling gained speed in the morning and at noon, institutions picked up the cheap stocks:

What’s next?

As you can see, as of this writing the SPX futures are down again (down -1.06%) and that is typical for bounces like the one we saw today:

We need to see a follow-through to call this a reversal and recovery. If the price continues lower without any stops, the end is still not here. If we start chop around or even see another green candle with a higher closing price than today’s price, we may see it as a bottoming process. But even with that, there is a risk of a dead cat bounce:

To tell for sure, we still need to wait before we can engage in full-scale trading. In the meantime, I rolled a few strangles that needed to go lower as they were hurting my buying power, and purchased a few depressed stocks such as Netflix (NFLX), and I plan on adding more SNOW, TSLA, APPL, and AMZN, so, if you joined the suckers selling today, keep selling. I am buying.

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

Posted by Martin January 23, 2022
No Comments

ARKK embarrassing results

ARKK returns last year and at the beginning of this year were so embarrassing that they decided to change their home page to no longer indicate YTD returns.

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

Posted by Martin January 23, 2022
No Comments

Our SPX PCS strategy will be spectacular when panic selling ends

This selloff in SPX is a blessing as well as a sour moment in the markets. It is a blessing because once this ends and people realize that they were overreacting once again, we will see a nice recovery. It may be slow and long, or a “V” shaped. In both cases, once our SPX strategy signals tell us that it is safe to enter the trading again, we will be taking every trade in our trading schedule and making money fist over the hand.
It is a sour moment because we have to stay out and sit on the sidelines. But it is still a good thing compared to my previous trading.

My SPX trading before was to take a trade every week, every expiration, use all available buying power, and scale up the trading indefinitely. It was wrong!

I traded Iron Condors mostly. I thought it would be the best strategy out there. It was not. No strategy works all the time in any market. And Iron Condors can burn you badly in the strong bull market, as well as in crashes like today. It took me some time to finally admit, I was wrong and schedule my trades. Do the exact opposite of what I was doing.

So, I developed a set of signals to help me to determine the trend and be able to see whether a trend is safe enough to open a trade or stay out. So far, it worked well as besides a few trades I took and had to close for a small loss, I was able to stay out and wait for the mass panic selling to end.

But now, I can see that this strategy will deliver spectacular returns as we will be riding the recovery up. And I am looking forward to it.

But there is a caution to be taken from me and my followers. Even if we start seeing recovery and resume of a bull market, our signal may still be negative telling us to stay away. The signal may be turning positive but it still can be in negative territory. The reason for this may be that any potential recovery may just be a bounce or a relief rally. And if that will be the case, we have to stay out too.

But once these hurdles are cleared and the market will be going higher again, we will resume our SPX trading and profit spectacularly. Stay tuned for the recovery and be patient.

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

Posted by Martin January 22, 2022
2 Comments

2022 Week 03 investing and trading report

Last week the SPX went on a crazy downhill. At first, trading was calm but then it sped up and everybody was selling like crazy. Panic was the investment strategy. And who panicked first was the winner (sarcasm). The initial catalyst for selling was the FED raising the rates surprisingly more than expected. But seriously, what was so surprising about it? And what idiot believes that a few percentage points of higher interest rates above the current zero would destroy the economy?

Our trading and investing was good last week and though our account suffered as probably everyone’s account out there, we were able to stay afloat. Rebalancing our trades, selling out some risky positions, and raising cash helped us to mitigate the worst and be prepared for buying opportunities. And those opportunities will come!

Here is our investing and trading report:

Account Value:	$97,815.29	-$340.73	-0.35%
Options trading results
Options Premiums Received:	$1,448.00
01 January 2022 Options:	$5,706.00	+5.83%
Options Premiums YTD:	$5,706.00	+5.83%
Dividend income results
Dividends Received:	$5.77
01 January 2022 Dividends:	$232.02
Dividends YTD:	$232.02
Portfolio metrics
Portfolio Yield:	5.66%
Portfolio Dividend Growth:	8.10%
Ann. Div Income & YOC in 10 yrs:	$33,014.87	25.66%
Ann. Div Income & YOC in 20 yrs:	$373,608.11	290.34%
Ann. Div Income & YOC in 25 yrs:	$2,176,467.68	1691.41%
Ann. Div Income & YOC in 30 yrs:	$21,771,477.76	16,919.35%
Portfolio Alpha:	-0.65%
Portfolio Weighted Beta:	0.61
CAGR:	529.84%
AROC:	5.96%
TROC:	12.21%
Our 2022 Goal
2022 Dividend Goal:	$4,800.00	4.83%	In Progress
2022 Portfolio Value Goal:	$151,638.03	64.51%	In Progress
6-year Portfolio Value Goal:	$175,000.00	55.89%	In Progress
10-year Portfolio Value Goal:	$1,000,000.00	9.78%	In Progress

Dividend Investing and Trading Report

Last week we have received $5.77 in dividends bringing January’s dividend income to $232.02.

We bought:

143 shares of OHI
100 shares of ENB
20 shares or RYLD

Here you can see our dividend income per stock holding:

Growth stocks Investing and Trading Report

Last week we bought the following growth stocks:

4 shares of AAPL
5 shares of SNOW

We closed our Amazon (AMZN) position but we plan to buy back once the panic selling is over. Originally we bought AMZN at $3,250 a share. We closed the position for $3,000 a share for a small loss. Now, the stock is trading at $2,850 a share. Surprisingly, APPL holds better than AMZN. Right now, just waiting for a good opportunity.

Options Investing and Trading Report

Last week we rolled our strangle trades to keep our account safe. That raised cash and buying power. Unfortunately, it didn’t help our net-liq much. We still went down.

These adjustments delivered our January income by $1,448.00 bringing January total to $5,706.00.

Once those trades are over, the net-liq will be released.

We were actively trading our SPX strategy that delivered $190.00 weekly income (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 $5.77 in dividends last week. Our portfolio currently yields 5.66% at $98,156.02 market value.

Our projected annual dividend income in 10 years is $33,014.87 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 $5,399.79 annual dividend income. We are 16.36% of our 10 year goal of $33,014.87 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 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 $131,493.57 to $132,015.51 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.

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 planed on reinvesting all dividends back to those holdings.

Investing and trading ROI

Our options trading delivered a 5.83% monthly ROI in January 2022, totaling a 5.83% ROI YTD. We hope that in 2022 we exceed our 45% annual revenue selling options against dividend stocks target!

Our entire account is down -6.53% underperforming our projections and the market.

Our options trading averaged $5,706.00 per month this year. If this trend continues, we are on track to make $68,472.00 trading options in 2022. As of today, we have made $5,706.00 trading options.

Old SPX trades repair

This week, we didn’t adjust our old SPX trades. Our goal is to reach a level where we will be eligible for portfolio margin (PM). Once that happens, we plan on converting the existing SPX Iron Condors to strangles and trade these positions as strangles.

With RegT margin, the capital requirements would be approx. $66,586.06 and that is beyond our means. With PM the requirement for margin would drop to around $10k. That is doable in our account. Once we reach this level, we will start adjusting our SPX trades accordingly. Until then, we will just roll these trades around.

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 trades.

Market Outlook

The stock market lost almost 6% last week. That is very unusual price behavior and it happened like that only a few times in the past. What will happen next? No one knows. Originally, I wanted to add a few shorts to play the downward movement of the market but I think, the market may be down too much already and oversold, and we may see a bounce or a very strong counter-rally. Any shorts can rip you off. So, I decided to play it safe and stay out. When I see a sign of a reversal, that may be a point to start buying again and open new bullish trades. It may happen next month or in March. Until then, we must wait.

If you want to learn more about the stock market, events that moved the market last week and will likely impact it in the near future, I recommend you to subscribe to our weekly newsletter. Knowing where the market is heading and knowing when you should expect its reversal can benefit your trading and investing. Subscribe and you get one month free.

Investing and trading report in charts

Account Net-Liq

Account Stocks holding

Last week, S&P 500 grew 54.96% since we opened our portfolio while our portfolio grew 20.74%. On YTD basis, the S&P 500 fell -9.80% and our portfolio -9.04%. This clearly indicates that our stock holdings performed better than the market.

The numbers above apply to our stock holdings only. Our overall account net-liq dropped only by -6.53% this year thanks to our options strategies that generated enough income to stay up a bit.

Stock holdings Growth YTD

I expect our stock holdings to start outperforming the market hopefully soon.

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 9.78% 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 55.89% of that goal.

Our 2022 year goal is to grow this account to a $151,638.03. and today we accomplished 64.51% 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 $4,800.00 in dividend income in 2022. As of today, we received $232.02. This is in line with our projected dividend goal for January 2022. We also accumulated enough shares to start making $5,399.79 a year.

Our account cumulative return

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

Here is the cumulative return for the year 2022:

Our win ratio overall:

Our win ratio for 2022:

As of today, our account overall cumulative return is 34.30% (note, data in this section are since March 13, 2021, only as that is the date we started tracking these metrics. Thus the results are skewed a bit and will show full picture next year.) and our 2022 cumulative return is -9.03%.

I have a favor to ask. If you like this report, please, hit the like 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:
2 Comments

Posted by Martin January 21, 2022
No Comments

2022 SPX put credit spreads trading review – week 03

What a week! And a month! SPX got hammered though not as much as Nasdaq. We are in a stage where investors are dumping everything now. Even good quality stocks. I guess margin calls are hitting them hard so they have to liquidate even good holdings in their portfolios. Last two weeks, I was rolling, adjusting, and liquidating some positions to stay afloat. Now it is paying off.

I also reversed our SPX strategy to selling calls but mostly staying away from the market. It is extremely difficult to short the market (any market) and we are down 9% so far. Yes, we can go down 20% from here, but we may also very well be bottoming and the rally can be extremely hard. You can get caught short with pants down, you reverse the trade, and the rally fails. You will get ripped twice. For this reason, I prefer staying out.

Yet, I opened another long-term trade that was still favorable. We finished the week up +3.74% while SPX lost -5.68%. Our account is still up 46.25% since the beginning of this program. If the selling continues, I might start seeing some troubles too, though. Those long-term trades are still safely beyond 1 SD but if the market keeps falling at this rate, it may not be safe anymore.

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	Put Credit Spread
TUESDAY	30 DTE	Put Credit Spread
WEDNESDAY	7 DTE	Put Credit Spread
FRIDAY	60 DTE	Put Credit Spread
EVERY MONTH	120 DTE	Put Debit Spread – HEDGE

Last week trading

DAY	SIGNAL TYPE	TRADE STATUS
MONDAY	Negative	No new trade
TUESDAY	Negative	No new trade
WEDNESDAY	Negative	New 7 DTE Call credit spread trade opened credit: $95 Exp: Jan26
FRIDAY	Positive	New 60 DTE trade opened credit: $95 Exp: Mar18 (pm)
EVERY MONTH	—	No new trade opened

On Monday, our entry signal was negative and we stayed away from the market.

On Tuesday, our entry signal was negative and we stayed away from the market.

On Wednesday, our entry signal was negative however, we opened a credit call spread.

On Friday, the signal for the 60 DTE trade was mixed/positive and we opened a new 60 DTE credit spread. I got confused and instead of on Friday, I opened the trade on Thursday. If opened on Friday, I could get a better position. But mistakes happen.

We didn’t open any new 120 DTE debit hedging trade this week. Since the market outlook is very negative and we are in backwardation, I might be opening a new additional hedge trade on Monday.

Here are our delayed open trades:

SPX PCS delayed trades

The trades are two weeks delayed. If you want to see the most recent trades or receive alerts, subscribe to our SPX alerts.

Overall, the strategy resulted in a $190.00 gain last week. Note that the gain might be unrealized as some or all trades may be still open.

Initial account value (since inception: 12/07/2021):	$3,600.00
Last week beginning value:	$5,075.00
Last week ending value:	$5,265.00 (+46.25%)
The highest capital requirements to trade this strategy:	$8,975
Unrealized Gain:	$390 (+4.53%)
Realized Gain:	$1,275 (+14.81%)
Total Gain:	$1,665 (+19.34%)

SPX PCS account value

Our SPX net-liq increased a bit last week but I consider it a good result since the market is volatile and non-trending, well, it is trending but the trend is choppy and weak.

SPX PCS account vs SPX index net liq

However, comparing the account with SPX net-liq, we are still outperforming this horrible market.

SPX PCS account vs SPX index

If the market continues being this choppy or even going down as fast as it has so far, I expect slower or no growth, because I will be out of the market.

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:

SUBSCRIBE HERE

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 January 20, 2022
No Comments

Stocks bounce couldn’t hold

It looked promising in the morning as the stocks bounced higher possibly creating a bottoming process. But then it was slowly bleeding and erasing all morning gains. The investors continue to act as if FED is going to increase the rates to 10% or some similar number. Not the case. At the most, we will see a rise of 1%, maybe 1.5% this year. And with inflation expected to drop back to 2.5%, there will be no more hikes. The US economy is not that good to sustain such pressure. Raising rates higher will crash it.

The stock market paired all gains. What could have caused this bleed is unclear as trading was not overly volatile. VIX is actually down 1.8% on a down day. It could be several catalysts such as unemployment claims, Peloton crashing on a report of halting production on low demand, or other things investors perceive as bad.

From the technical perspective, this is not good as this will prompt more selling on Friday.

After the bell, companies such as Netflix will be reporting earnings. Will the earnings season help this market? So far, investors seem to be ignoring earnings and the market is stuck on FED and its tightening.

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

Posted by Martin January 20, 2022
No Comments

The market bounced, was it enough selling or will we see more?

After Wednesday’s market selloff we finally got a bounce. This was a second bounce last week. The question is, will a momentum hold followed by a rally – a sustainable rally, or are we seeing just a relief bounce/rally and renewed selling next week? We must wait to see.

Bearish sentiment, not so bearish market

When reviewing social media, mainly YouTube, you can see posts all calling for a crash, recession, mother of all crashes, and all the creators are telling their audience how they sold out of their positions. Their thumbnails all display flames burning behind their backs, charts crashing down through the floor, scared faces, and sensational shouts about the inevitable end of the world.

But it all indicates one thing – none of these people actually understand what forces drive the market.

I do not want to sound patronizing or pretend I am a smart cookie here. I actually didn’t know myself either until about a year ago when I learned a lot of tricks on how to look at the market to determine its health. And since I started learning and watching these indicators, I started seeing discrepancies between the market’s temporary mood and its overall health. In other words, when all the Youtubers are predicting a recession while the market is selling off, I see a few indicators telling me that there is no recession coming and that the selling is most likely a temporary correction. A good opportunity to buy a few shares of good companies.

Among those few indicators, I watch is a put-call ratio. A normal level is 0.85 – 0.90. A neutral level is 1.00. Anything below that indicates bullishness, anything above that bearishness. Look below:

The put-call ratio went up to 1.075 during this selloff. It didn’t even exceed December’s highs. And it ticked only a few tiny points above the 1.00 level. What does it tell you? It tells me that all those bears out there are either totally dumb and do not know what they are doing, or actually do not believe in what they are preaching because no one is rushing to buy puts to hedge against the imminent crash or recession. The market doesn’t expect one.

When looking at another indicator such as the VIX futures structure, I see the exact same thing. The market doesn’t expect any recession or imminent crash. At least not yet, not as of today.

And those who sold off are now sitting on a pile of cash that will proper this market higher as soon as these people start feeling the FOMO. If we have bottomed, expect a face-ripping rally.

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

Posted by Martin January 18, 2022
No Comments

Market is still going lower but you should not panic

It is difficult to watch your portfolio value slump when the market is selling off. I am down almost $7k as of today. But I am not worried about it. Why?

It is because I hold good quality stocks. At least, I think they are good quality companies. And I haven’t sold a single share. In fact, I bought more shares of stocks like OHI and I plan on adding more shares of AAPL, SNOW, or TSLA. But I am waiting because I think, this market will provide even better prices as weak hands are panicking and selling.

Investors should be selling stocks that have high valuations and make no money (typically what Cathy Woods invests in) but not good quality stocks like Apple or even Tesla. Tesla may be highly valued but it is still a growing company and it is making cash hand over the fist, like Apple does, reinvests, and delivers. If you look at Coca-Cola (KO) that stock is trading at a premium constantly. Maybe today, when investors are dumping everything it may have gone lower already.

And I am optimistic and still think, this market will provide great returns in 2022. We just must wait out this volatility, enormous bearishness, and panic over nothing. And even a 10%, or 20% correction is nothing in the view of my investing and trading horizon. In fact, I would like this market to crash lower as I plan on picking up the leftover crumbs.

In my newsletter last week I wrote that if the recent support at $4,675 holds, expect the market to resume an uptrend and continue to the $4,875 level.

Then I added that if that level won’t hold, expect the market to go to $4,500 level:

Today, it is obvious that the market couldn’t hold that level and I expect it to continue lower to $4,500 level and possibly even down to 200-day moving average at $4,440 level. It would be a great opportunity to see that drop. I would be able to buy a lot of cheap stocks!

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

Posted by Martin January 16, 2022
No Comments

2022 Week 02 investing and trading report

The market keeps its choppy trading on fears. Investors are getting rid of the high multiple stocks and with the bathwater, they are pouring out the baby too. The selling had an impact on our net-liq although not as bad as the prior week. Our options trading increased slightly too as we were rebalancing our portfolio options holdings.

Here is our investing and trading report:

Account Value:	$98,156.02	-$574.92	-0.58%
Options trading results
Options Premiums Received:	$402.00
01 January 2022 Options:	$4,258.00	+4.34%
Options Premiums YTD:	$4,258.00	+4.34%
Dividend income results
Dividends Received:	$90.00
01 January 2022 Dividends:	$226.25
Dividends YTD:	$226.25
Portfolio metrics
Portfolio Yield:	4.84%
Portfolio Dividend Growth:	8.80%
Ann. Div Income & YOC in 10 yrs:	$26,029.25	21.58%
Ann. Div Income & YOC in 20 yrs:	$287,639.80	238.44%
Ann. Div Income & YOC in 25 yrs:	$1,701,307.25	1410.30%
Ann. Div Income & YOC in 30 yrs:	$18,084,216.27	14,990.96%
Portfolio Alpha:	-2.07%
Portfolio Weighted Beta:	0.60
CAGR:	537.50%
AROC:	4.39%
TROC:	11.44%
Our 2022 Goal
2022 Dividend Goal:	$4,800.00	4.71%	In Progress
2022 Portfolio Value Goal:	$151,638.03	64.73%	In Progress
6-year Portfolio Value Goal:	$175,000.00	56.09%	In Progress
10-year Portfolio Value Goal:	$1,000,000.00	9.82%	In Progress

Dividend Investing and Trading Report

Last week we have received $90.00 in dividends bringing January’s dividend income to $226.25.

We bought:

20 shares of RYLD
5 shares of IEP

We also sold the following shares as the stocks didn’t perform as expected:

10 shares of SPLG
10 shares of SPYG

Here you can see our dividend income per stock holding:

Growth stocks Investing and Trading Report

Last week we didn’t buy any new positions in growth stocks.

Options Investing and Trading Report

Last week we rolled a few of our strangle trades to keep our account safe. Each time the stock moved up or down towards one or the other strike price, it consumed our buying power. Rolling the trade to the center of our strangle, we brought in credit and released buying power.

These adjustments delivered our January income by $402.00 bringing January total to $4,258.00.

We were actively trading our SPX strategy that delivered -$595.00 weekly income (loss).

Expected Future Dividend Income

We have received $90.00 in dividends last week. Our portfolio currently yields 4.84% at $98,156.02 market value.

Our projected annual dividend income in 10 years is $26,029.25 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 $4,692.63 annual dividend income. We are 18.03% of our 10 year goal of $26,029.25 dividend income.

Market value of our holdings

Our non-adjusted stock holdings market value decreased from $131,541.85 to $131,493.57 last week.

Investing and trading ROI

Our options trading delivered a 4.34% monthly ROI in January 2022, totaling a 4.34% ROI YTD. We hope that in 2022 we exceed our 45% annual revenue selling options against dividend stocks target!

Our entire account is down -6.20% underperforming our projections and the market.

Our options trading averaged $4,258.00 per month this year. If this trend continues, we are on track to make $51,096.00 trading options in 2022. As of today, we have made $4,258.00 trading options.

Old SPX trades repair

We however traded our SPX put credit spread strategy which you will be able to review in my next report.

Market Outlook

The stock market continued to struggle with the trend. It failed to go higher and continued being pressured down by interest rate fear when tech stocks were selling off. But we had a few bright moments in the market trend when the buyers stepped in and bought a fairly large morning selloff. On both occasions, the market closed in green. I expect the market to stabilize and move higher propped by earnings, given that the earnings reports will be good and companies also provide positive guidance. If not, more selling may come.