Posted by Martin October 15, 2022
No Comments

2022 SPX put credit spreads trading review – week 41

We traded only two SPX trades last week and one SPY butterfly adjustment. That trade may end busted. Maybe, next week I will try to adjust that trade again to squeeze some credit from it, but as of today, the trade might be just a bust. I wanted to adjust that trade to a credit spread, but then the market reversed and started selling hard at the end of the week. I am glad I didn’t touch that trade, as the protection I put in may still be needed.

Our trades delivered a $265.00 gain. Our account weekly trading is up by 0.72% while SPX lost -1.55%.

Our SPX account is up +927.89% since the beginning of this program, and we have $41,215 in unrealized gains.

Initial SPX trade set ups

I dedicated a $3,600 initial amount that will be used to trade SPX PCS strategy per week. Today, the account is up at $37,003.95. However, due to the recent bear market, many trades are still tight to open trades which need to expire to release the funds.

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

We use a set of indicators (primarily based on moving averages and volume profiles) and market sentiment that generates bullish signals. The trading is based on a “trend-following strategy.” We open the trade if we have a bullish signal and a bullish trend. If we do not have a signal, we stay away. We also trade credit call spreads when we have bearish signals. In a choppy market, we stay away from or trade very short expirations (usually 1 or 2 days or up to 7 days), but the trading is muted as we need a trending market. Unfortunately, today, we do not have a trending market (yes, overall, it is a down-trending market, but for short-term trades, it is choppy and not trending).

Here you can see all our trades:

Click on the picture above to see the entire list.

Last week trading

Overall, the strategy resulted in a +927.89% gain last week.

Initial account value (since inception: 12/07/2021):	$3,600.00
Last week beginning value:	$36,738.95
Last week ending value:	$37,003.95 (0.72%; total: +927.89%)
The highest capital requirements to trade this strategy:	$19,995
Current capital at risk:	-$12,215
Unrealized Gain:	$41,215 (-337.41%)
Realized Gain:	-$7,655 (62.67%)
Total Gain:	$33,560 (-274.74%)
Win Ratio:	56%
Average Winner:	$315
Average Loser:	$512

SPX PCS account value

SPX PCS account vs SPX index net liq

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:

SUBSCRIBE HERE

Note, if you wish to subscribe to multiple levels, you can do so by subscribing to one level only and then sending 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 October 09, 2022
No Comments

2022 Week 40 investing and trading report

Last week when the market rallied my account recovered and it went from $52k to over $65k in a day. Then it crashed and I am pretty much back where I started. Because of this extreme volatility and bearishness out there, I didn’t do too much trading last week. But I was buying the SPXL fund as I think this is the right thing to do. When the market goes down, I am buying this 3x leveraged ETF, and once the market recovers, I will be trimming that position. And, on top of that, I am selling covered calls.

I still struggle with cash and buying power. It is difficult to stay afloat. Many times during this bear market, it was the options dragging my account down, now my stocks joined the party and drag the account down too.

I didn’t trade much last week, only one covered call. That trading delivered +$54.00 premiums last week ending October 2022 at +$54.00 (+0.10%) options income. Our net-liq value increased by 4.36% to $54,372.41 value. That is still a terrible result. Our overall account is now down -48.04% YTD.

Here is our investing and trading report:

Account Value:	$54,372.41	+$2,369.84	+4.36%
Options trading results
Options Premiums Received:	+$54.00
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:	+$8,604.00	+11.32%
06 June 2022 Options:	+$9,691.00	+13.73%
07 July 2022 Options:	+$8,717.00	+11.39%
08 August 2022 Options:	+$7,987.00	+12.15%
09 September 2022 Options:	+$2,997.00	+5.76%
10 October 2022 Options:	+$54.00	+0.10%
Options Premiums YTD:	$56,329.00	+103.60%
Dividend income results
Dividends Received:	$66.10
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:	$343.99
06 June 2022 Dividends:	$445.80
07 July 2022 Dividends:	$367.66
08 August 2022 Dividends:	$683.58
09 September 2022 Dividends:	$555.20
10 October 2022 Dividends:	$66.10
Dividends YTD:	$4,229.57
Portfolio Equity
Portfolio Equity:	$155,598.37	+$10,690.90	+7.38%
Portfolio metrics
Portfolio Yield:	6.26%
Portfolio Dividend Growth:	11.94%
Ann. Div Income & YOC in 10 yrs:	$93,721.93	50.84%
Ann. Div Income & YOC in 20 yrs:	$5,173,549.98	2,806.32%
Ann. Div Income & YOC in 25 yrs:	$151,140,212.01	81,984.01%
Ann. Div Income & YOC in 30 yrs:	$18,002,931,729.22	9,765,452.92%
Portfolio Alpha:	98.29%
Sharpe Ratio:	-14.49	BAD
Portfolio Weighted Beta:	0.47
CAGR:	267.19%
AROC:	66.55%
TROC:	2.22%
Our 2022 Goal
2022 Dividend Goal:	$4,800.00	88.12%	In Progress
2022 Portfolio Value Goal:	$151,638.03	35.86%	In Progress
6-year Portfolio Value Goal:	$175,000.00	31.07%	In Progress
10-year Portfolio Value Goal:	$1,000,000.00	5.44%	In Progress

Dividend Investing and Trading Report

Last week we have received $66.10 in dividends bringing our October’s dividend income at $66.10.

Last week, we bought these dividend growth stocks:

– 2 shares of COST @ $490.46

I plan on accumulating Costco shares and this is my initial investment. I will be slowly adding more shares in the near future until I reach 100 shares.

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

Last week, we bought the following growth stocks and funds:

35 shares of SPXL @ $62.60

I accumulated 200 shares of this ETF and started selling another covered call contract. I believe, accumulating this 3x leveraged ETF during this bear market is a great opportunity that will pay big in a recovery.

Options Investing and Trading Report

Last week I was not trading options much. I only opened one covered call against SPXL. The call was with Friday’s expiration and it expired for a full profit. Next week I will reopen the position.

That trade delivered a gain of +$54.00 making our October options income +$54.00.

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

Expected Future Dividend Income

We received $66.10 in dividends last week. Our portfolio currently yields 6.26% at $54,372.41 market value.

Our projected annual dividend income in 10 years is $93,721.93, 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 $6,676.00 annual dividend income ($556.33 monthly income). We are 7.12% of our 10 year goal of $93,721.93 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 $144,907.47 to $155,598.37 last week.

In 2022 we plan 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 +0.10% monthly ROI in October 2022, totaling a 103.60% ROI YTD. If our options income stays at this level by the end of the year, we will exceed our 45% annual revenue goal in selling options against dividend stocks.

Our entire account is still down -48.04%.

Our options trading averaged $5,632.90 per month this year. If this trend continues, we will make $67,594.80 trading options in 2022. As of today, we have made $56,329.00 trading options.

Old SPX trades repair

We traded our SPX put credit spread strategy which you will be able to review in my next report. The SPX strategy has held well so far, and our signals kept us from opening new aggressive trades.

Investing and trading report in charts

Account Net-Liq

Account Stocks holding

Last week, S&P 500 grew 25.82% since we opened our portfolio while our portfolio grew 2.54%. On YTD basis, the S&P 500 fell -38.94% and our portfolio -27.23%. This is an excellent result! We are significantly outperforming the market.

The numbers above apply to our stock holdings only. Our overall account net-liq is down by -48.04% this year.

Stock holdings Growth YTD

Our stock holdings are starting to outperform 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 5.44% 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 31.07% of that goal.

Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 35.86% of this goal.

Investing and Trading Report – Options Monthly Income

Investing and Trading Report – Options Annual Income

Our dividend goal and future dividends

We plan to make $4,800.00 in dividend income in 2022. As of today, we received $4,229.57. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $6,676.00 a year. Our monthly projected dividend income is $556.33, and our current monthly dividend income is $352.46.

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:
No Comments

Posted by Martin October 09, 2022
No Comments

2022 SPX put credit spreads trading review – week 40

Last week SPX trading started well… and then it all puked again. This is definitely a very difficult time to trade. You can get whipsawed quickly or you adopt a strategy where you maintain the trades and adjust them to stay afloat and eventually a winner in the end. Some traders open a trade, usually a zero DTE one, and then place a stop loss. Unless you are a full-time trader and can watch the trade you will most likely lose money being stopped almost every time. How do you react to a trade when the market rallies in the morning and pukes in the afternoon? I adopted a strategy where I roll the trades no matter whether others like it or hate it. It is capital intensive, sometimes very frustrating, but doable.

I traded a little last week. I opened a trade that almost went bust. Fortunately, it expired a day before that market pooped again. Then I opened a debit trade (a butterfly, which I adjusted – I should have not touched it – and later adjusted it again).

These trades delivered a -$85.00 loss. It is not a loss, but debit I paid for the debit trades, so it still may change next week if these trades play out. Our account is down by -0.23% while SPX gained +1.51%.

Our SPX account is up +920.53% since the beginning of this program, and we have $36,738.95 in unrealized gains.

Initial SPX trade set ups

I dedicated a $3,600 initial amount that will be used to trade SPX PCS strategy per week. Today, the account is up at $36,738.95. However, due to the recent bear market, many trades are still tight to open trades which need to expire to release the funds.

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.

Here you can see all our trades:

Click on the picture above to see the entire list.

Last week trading

Overall, the strategy resulted in a +920.53% gain last week.

Initial account value (since inception: 12/07/2021):	$3,600.00
Last week beginning value:	$36,823.95
Last week ending value:	$36,738.95 (-0.23%; total: +920.53%)
The highest capital requirements to trade this strategy:	$19,995
Current capital at risk:	-$12,215
Unrealized Gain:	$41,215 (-337.41%)
Realized Gain:	-$7,920 (64.84%)
Total Gain:	$33,295 (-272.57%)
Win Ratio:	56%
Average Winner:	$318
Average Loser:	$512

SPX PCS account value

SPX PCS account vs SPX index net liq

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:

SUBSCRIBE HERE

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

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

Posted by Martin October 02, 2022
No Comments

2022 Week 38-39 investing and trading report

I feel like Cathy Woods now. Her ARKK fund lost over 60% this year. My portfolio is down 50%… That is bad for my trading and investing, isn’t it? My stocks are down 18.9% for the year. The rest are losses in options. Am I worried? No. The losses are just on paper as the options are either in the money or sport high implied volatility. This will change once the market improves. But it will take time to repair the damage. I hope I will be able to make money while doing it.

I now have more cash than the net-liquidating value of my portfolio. That is unimaginable…

Our trading delivered +$616.00 premiums last week ending September 2022 at +$2,997.00 (+5.76%) options income. Our net-liq value decreased by -23.48% in last two weeks to $52,002.57 value. That is a terrible result. Our overall account is now down -50.31% YTD.

Here is our investing and trading report:

Account Value:	$52,002.57	-$12,208.62	-23.48%
Options trading results
Options Premiums Received:	+$1,795.00
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:	+$8,604.00	+11.32%
06 June 2022 Options:	+$9,691.00	+13.73%
07 July 2022 Options:	+$8,717.00	+11.39%
08 August 2022 Options:	+$7,987.00	+12.15%
09 September 2022 Options:	+$2,997.00	+5.76%
Options Premiums YTD:	$56,275.00	+108.22%
Dividend income results
Dividends Received:	$368.50
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:	$343.99
06 June 2022 Dividends:	$445.80
07 July 2022 Dividends:	$367.66
08 August 2022 Dividends:	$683.58
09 September 2022 Dividends:	$555.20
Dividends YTD:	$4,163.47
Portfolio Equity
Portfolio Equity:	$144,907.47	-$20,771.11	-12.54%
Portfolio metrics
Portfolio Yield:	6.43%
Portfolio Dividend Growth:	12.20%
Ann. Div Income & YOC in 10 yrs:	$98,406.63	55.56%
Ann. Div Income & YOC in 20 yrs:	$6,522,861.27	3,682.74%
Ann. Div Income & YOC in 25 yrs:	$229,246,444.67	129,430.22%
Ann. Div Income & YOC in 30 yrs:	$35,905,621,206.13	20,271,949.25%
Portfolio Alpha:	102.71%
Sharpe Ratio:	-7.61	BAD
Portfolio Weighted Beta:	0.50
CAGR:	265.14%
AROC:	69.16%
TROC:	3.02%
Our 2022 Goal
2022 Dividend Goal:	$4,800.00	86.74%	In Progress
2022 Portfolio Value Goal:	$151,638.03	34.29%	In Progress
6-year Portfolio Value Goal:	$175,000.00	29.72%	In Progress
10-year Portfolio Value Goal:	$1,000,000.00	5.20%	In Progress

Dividend Investing and Trading Report

Last week we have received $368.50 in dividends bringing our September’s dividend income at $555.20. That met my expectations.

Last week, we did not purchase any dividend stock.

And here you can see the dividend income those equities pay us every year:

Growth stocks Investing and Trading Report

Last week, we purchased no growth stocks.

Options Investing and Trading Report

Last week I was just adjusting my existing options positions.

However, these adjustments delivered a gain of +$616.00 making our September options income +$2,997.00.

We were actively trading our SPX strategy that delivered $3,597.00 gain.

Expected Future Dividend Income

We received $368.50 in dividends last week. Our portfolio currently yields 6.43% at $52,002.57 market value.

Our projected annual dividend income in 10 years is $98,406.63, 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 $6,548.80 annual dividend income ($545.73 monthly income). We are 6.65% of our 10 year goal of $98,406.63 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 decreased from $165,678.58 to $144,907.47 last week.

Investing and trading ROI

Our options trading delivered a +5.76% monthly ROI in September 2022, totaling a 108.22% ROI YTD. If our options income stays at this level by the end of the year, we will exceed our 45% annual revenue goal in selling options against dividend stocks.

Our entire account is still down -50.31%.

Our options trading averaged $6,252.78 per month this year. If this trend continues, we will make $75,033.33 trading options in 2022. As of today, we have made $56,275.00 trading options.

Old SPX trades repair

We traded our SPX put credit spread strategy which you will be able to review in my next report. The SPX strategy has held well so far, and our signals kept us from opening new aggressive trades.