Posted by Martin September 11, 2022
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2022 Week 36 investing and trading report

As a week ago was a disaster for our trading and investing, it all changed on a dime last week, and we recovered all paper losses. Nevertheless, I was not trading last week. I only adjusted a few trades to bring them a bit in line with the stock price (that adjustment delivered credit), but other than that, I was staying out and just watching what was going on out there.

Last week my net-liq value, cash, and buying power improved. Both metrics went up. That is good. If this continues, I will be able to open more trades:

Our trading delivered +$653.00 premiums last week ending September 2022 at +$586.00 (+0.81%) options income. Our net-liq value increased by +9.08% last week to $72,323.97 value, and our overall account is down -30.89% YTD.

Here is our investing and trading report:

Account Value:	$72,323.97	+$6,566.21	+9.08%
Options trading results
Options Premiums Received:	+$653.00
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:	+$586.00	+0.81%
Options Premiums YTD:	$53,864.00	+74.48%
Dividend income results
Dividends Received:	$23.60
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:	$140.03
Dividends YTD:	$3,748.30
Portfolio Equity
Portfolio Equity:	$170,554.50	+$6,700.61	+4.09%
Portfolio metrics
Portfolio Yield:	5.47%
Portfolio Dividend Growth:	11.61%
Ann. Div Income & YOC in 10 yrs:	$68,149.30	37.90%
Ann. Div Income & YOC in 20 yrs:	$2,405,649.75	1,337.89%
Ann. Div Income & YOC in 25 yrs:	$46,164,602.49	25,674.29%
Ann. Div Income & YOC in 30 yrs:	$3,025,648,609.05	1,682,704.34%
Portfolio Alpha:	69.04%
Sharpe Ratio:	4.73	EXCELLENT
Portfolio Weighted Beta:	0.49
CAGR:	310.67%
AROC:	51.99%
TROC:	5.75%
Our 2022 Goal
2022 Dividend Goal:	$4,800.00	78.09%	In Progress
2022 Portfolio Value Goal:	$151,638.03	47.70%	In Progress
6-year Portfolio Value Goal:	$175,000.00	41.33%	In Progress
10-year Portfolio Value Goal:	$1,000,000.00	7.23%	In Progress

Dividend Investing and Trading Report

Last week we have received $23.60 in dividends bringing our September’s dividend income at $140.03. That met my expectations.

Last week, we did not purchase any dividend stock.

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 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 +$653.00 making our September options income +$586.00.

We were actively trading our SPX strategy that delivered -$25.00 loss.

Expected Future Dividend Income

We received $23.60 in dividends last week. Our portfolio currently yields 5.47% at $72,323.97 market value.

Our projected annual dividend income in 10 years is $68,149.30, 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 $6,686.70 annual dividend income ($557.22 monthly income). We are 9.81% of our 10 year goal of $68,149.30 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 $163,853.89 to $170,554.50 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 +0.81% monthly ROI in September 2022, totaling a 74.48% 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 -30.89%.

Our options trading averaged $5,984.89 per month this year. If this trend continues, we will make $71,818.67 trading options in 2022. As of today, we have made $53,864.00 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 40.61% since we opened our portfolio while our portfolio grew 19.02%. On YTD basis, the S&P 500 fell -24.16% and our portfolio -10.75%. 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 -30.89% 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 7.23% 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 41.33% of that goal.

Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 47.70% 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 $3,748.30. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $6,686.70 a year. Our monthly projected dividend income is $557.22, and our current monthly dividend income is $312.36.

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.

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Posted by Martin September 11, 2022
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2022 SPX put credit spreads trading review – week 36

Last week the market stopped at 3,900 support, reversed, and started going higher again. That was not good for our SPX trading as I was preparing for more selling opening credit call spreads. When the market reversed, I had to reverse the trades too. Last week, I had a “box” trade that was set to expire on September 9. I decided to let the trade go and let it expire without adjusting it. I will not be renewing the trade either.

I also had a credit call spread set to expire on September 2nd. The trade expired worthless for a full profit. We also have a trade expiring on September 12 that is currently in the money. I will try to roll it if the market doesn’t move up next week. It needs to move 40 points for the trade to end out of the money. I hope it will happen.

With the box-puts trade expiring in the money, I had a loss. The loss was just $10, so it had little impact on the overall account. The SPX trading delivered a -$25.00 loss. That brought our account up by -0.08% while SPX lost 3.65%.

Our SPX account is up +776.17% since the beginning of this program, and we have $37,694 in unrealized gains.

Initial trade set ups

For the SPX strategy, I dedicated a $3,600 initial amount that will be used to trade SPX PCS strategy per week. Today, the account is up at $31,541.95. However, due to the recent bear market, many trades are still tight to open trades which need to expire to release the funds.

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 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 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.

We do not trade 0 DTE trades although we may shorten the DTE if needed. 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 mainly going 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 open more aggressive trades (which is not the case today due to the market’s correction).

How much money can you 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 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 actual 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. 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 +776.17% gain last week.

Initial account value (since inception: 12/07/2021):	$3,600.00
Last week beginning value:	$31,261.95
Last week ending value:	$31,541.95 (-0.08%; total: +776.17%)
The highest capital requirements to trade this strategy:	$19,995
Current capital at risk:	-$5,694
Unrealized Gain:	$37,694 (-662.00%)
Realized Gain:	-$7,883 (138.44%)
Total Gain:	$29,811 (-523.55%)
Win Ratio:	55%
Average Winner:	$323
Average Loser:	$490

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!

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Posted by Martin September 03, 2022
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2022 Week 35 investing and trading report

Last week was a disaster to my net-liq, not necessarily trading results as I was able to bring in some cash trading options and dividend income was great too. Bu the open stock and options positions dropped and hurt the value of the portfolio. I think it will be just a temporary drawdown that I have to survive (meaning be able to go through it without liquidating my core positions).

And that is the issue as my cash balance is going up but my buying power is going down with the increased margin requirements. It is very hard to stay afloat:

Last week, I made a few adjustments only, but these adjustments were mostly for credit.

Our trading delivered +$644.00 premiums last week ending August 2022 at +$7,987.00 (+12.15%) options income. Our net-liq value decreased by stagerring -19.25% last week to $65,757.76 value, and our overall account is down -37.16% YTD.

Here is our investing and trading report:

Account Value:	$65,757.76	-$12,656.74	-19.25%
Options trading results
Options Premiums Received:	+$644.00
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	+0.37%
09 September 2022 Options:	-$67.00	-0.10%
Options Premiums YTD:	$53,211.00	+80.92%
Dividend income results
Dividends Received:	$152.58
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:	$116.43
Dividends YTD:	$3,724.70
Portfolio Equity
Portfolio Equity:	$163,853.89	-$7,701.52	-4.49%
Portfolio metrics
Portfolio Yield:	5.61%
Portfolio Dividend Growth:	11.61%
Ann. Div Income & YOC in 10 yrs:	$71,395.60	39.71%
Ann. Div Income & YOC in 20 yrs:	$2,666,651.05	1,483.15%
Ann. Div Income & YOC in 25 yrs:	$53,770,820.94	29,906.45%
Ann. Div Income & YOC in 30 yrs:	$3,767,792,172.73	2,095,584.43%
Portfolio Alpha:	75.45%
Sharpe Ratio:	5.60	EXCELLENT
Portfolio Weighted Beta:	0.49
CAGR:	303.03%
AROC:	80.37%
TROC:	4.63%
Our 2022 Goal
2022 Dividend Goal:	$4,800.00	77.60%	In Progress
2022 Portfolio Value Goal:	$151,638.03	43.36%	In Progress
6-year Portfolio Value Goal:	$175,000.00	37.58%	In Progress
10-year Portfolio Value Goal:	$1,000,000.00	6.58%	In Progress

Dividend Investing and Trading Report

Last week we have received $152.58 in dividends bringing our August’s dividend income at $683.58. 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 +$644.00 making our August options income +$7,987.00.

We were actively trading our SPX strategy that delivered +$305.00 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 received $152.58 in dividends last week. Our portfolio currently yields 5.61% at $65,757.76 market value.

Our projected annual dividend income in 10 years is $71,395.60, 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 $6,684.50 annual dividend income ($557.04 monthly income). We are 9.36% of our 10 year goal of $71,395.60 dividend income.

Market value of our holdings

Our non-adjusted stock holdings market value decreased from $171,555.41 to $163,853.89 last week.

Investing and trading ROI

Our options trading delivered a +12.15% monthly ROI in August 2022, totaling a 80.92% 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 -37.16%.

Our options trading averaged $5,912.33 per month this year. If this trend continues, we will make $70,948.00 trading options in 2022. As of today, we have made $53,211.00 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 held well so far, and our signals kept us from opening new aggressive trades.