Last week was horrible in the market and it affected our trading negatively. We had to roll many trades for debit to stay safe and it had a negative impact on our options trading. However, we added stocks to our portfolio despite the terrible market performance as I believe, the market is near the bottom and it is time to start slowly adding shares of beaten-down stocks.
Last week we lost -$936.00 trading options, our second week of losing premiums, and our net-liq dropped down significantly by -$6,785.92 or -7.54% from last week. That is a painful drawdown. But that is the nature of trading naked options. Despite the bleak performance, I am optimistic. The losses are on paper only and created by terribly high implied volatility. I hold over $54k in cash (currently blocked by the trades but as the volatility drops, this cash will be released). Here is just a small example of high volatility in stocks in our portfolio. This volatility beats down our stock holdings positions as well as options trades:
And these are just small examples of stocks that display the implied volatility in the high 60s, 70s, 80s, and some even 90s. This has a huge impact on our net-liquidation value.
Here is our investing and trading report:
| Account Value: |
$89,978.71 |
-$6,785.92 |
-7.54% |
| Options trading results |
| Options Premiums Received: |
-$936.00 |
|
|
| 01 January 2022 Options: |
$8,885.00 |
+8.36% |
|
| 02 February 2022 Options: |
$10,009.00 |
+10.34% |
|
| 03 March 2022 Options: |
-$1,972.00 |
-2.19% |
|
| Options Premiums YTD: |
$16,922.00 |
+18.81% |
|
| Dividend income results |
| Dividends Received: |
$27.26 |
|
|
| 01 January 2022 Dividends: |
$303.38 |
|
|
| 02 February 2022 Dividends: |
$732.81 |
|
|
| 03 March 2022 Dividends: |
$202.88 |
|
|
| Dividends YTD: |
$1,239.07 |
|
|
| Portfolio metrics |
| Portfolio Yield: |
5.73% |
|
|
| Portfolio Dividend Growth: |
7.33% |
|
|
| Ann. Div Income & YOC in 10 yrs: |
$33,966.66 |
23.67% |
|
| Ann. Div Income & YOC in 20 yrs: |
$310,344.80 |
216.22% |
|
| Ann. Div Income & YOC in 25 yrs: |
$1,473,308.75 |
1,026.48% |
|
| Ann. Div Income & YOC in 30 yrs: |
$10,793,587.22 |
7,520.11% |
|
| Portfolio Alpha: |
13.38% |
|
|
| Portfolio Weighted Beta: |
0.49 |
|
|
| CAGR: |
462.85% |
|
|
| AROC: |
13.84% |
|
|
| TROC: |
13.08% |
|
|
| Our 2022 Goal |
| 2022 Dividend Goal: |
$4,800.00 |
25.81% |
In Progress |
| 2022 Portfolio Value Goal: |
$151,638.03 |
59.34% |
In Progress |
| 6-year Portfolio Value Goal: |
$175,000.00 |
51.42% |
In Progress |
| 10-year Portfolio Value Goal: |
$1,000,000.00 |
9.00% |
In Progress |
Dividend Investing and Trading Report
Last week we have received $27.26 in dividends bringing March’s dividend income to $202.88.
Last week, we bought these dividend growth stocks:
– 20 shares of CSQ @ $16.01
Here you can see our dividend income per stock holding:
Growth stocks Investing and Trading Report
Last week we bought the following growth stocks and funds:
- 5 shares of SNOW @ $194.69
- 25 shares of SPXL @ $98.62
We are adding shares of SPXL to boost our potential growth once the market reverses (I do not believe we will be in any extensively prolonged bear market, and even if we will, I still will be adding shares of this leveraged ETF to capture as much potential future upside as possible). When I started adding SPXL to my portfolio, the ETF was trading at $130 a share. Today, I added shares at $98 a share. Returning back to $130 a share in the future gives me a 33% upside potential. And on top of it, once I reach 100 shares, I will start selling covered calls against this position.
Options Investing and Trading Report
Last week we rolled our strangle trades to keep our account safe. That raised cash and buying power but the trades were mostly debit trades in lieu of credit.
These adjustments lost income of -$936.00 bringing March total to -$1,972.00.
We were actively trading our SPX strategy that delivered $730.00 weekly 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 have received $27.26 in dividends last week. Our portfolio currently yields 5.73% at $89,978.71 market value.
Our projected annual dividend income in 10 years is $33,966.66 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 $5,681.68 annual dividend income ($473.47 monthly income). We are 16.73% of our 10 year goal of $33,966.66 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 decreased from $138,871.30 to $138,190.73 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 -2.19% monthly ROI in March 2022, totaling a 18.81% ROI YTD. We hope that in 2022 we exceed our 45% annual revenue selling options against dividend stocks target, although as of today, we are getting behind this goal.
Our entire account is down -14.01%.
Our options trading averaged $5,640.67 per month this year. If this trend continues, we are on track to make $67,688.00 trading options in 2022. As of today, we have made $16,922.00 trading options.
Old SPX trades repair
This week, we have not adjusted any of the old trades. We adjusted a trade a week ago and it appears to be playout out well. I hope, it will end in our favor and we will be able to get rid of that trade.
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 is still rattled by the war in Ukraine and inflation. None will have a long-term impact. It will pass one day and all these people who were selling last week will be chasing the stocks buying back into their positions. We had support at $4,240 that was breached early last week. Then a strong rally brought us back above that support but on Thursday and Friday the market lost it again and we closed below.
From a technical perspective, the chart is still broken and shows no signs of improvement. I expect more selling next week unless we get some good news to rally upon. One upside catalyst may be FED raising the rates that could calm the markets or positive development in Ukraine. That is the biggest bogus influence on the market in my opinion. I do not support the war, and it is horrible what Putin is doing and he must be stopped, but the market’s reaction on the potential impact of Russian sanctions is overblown. I will explain this more in our newsletter.
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 47.25% since we opened our portfolio while our portfolio grew 10.15%. On YTD basis, the S&P 500 fell -17.51% and our portfolio -19.62%. We are underperforming the market.
The numbers above apply to our stock holdings only. Our overall account net-liq is up by -14.01% this year thanks to our options strategies that generated enough income to stay up a bit.
Stock holdings Growth YTD
Our stock holdings are starting to outperform the market. Hopefully, this trend will stay and we will be doing better than S&P 500 constantly.
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 9.00% 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 51.42% of that goal.
Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 59.34% 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 $1,239.07. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $5,681.68 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 1.03% (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 -31.57%.
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Now it is official. After a few delays, the MTB bank took over the PBCT bank. The PBCT bank was my darling and stock I started buying in the early days of my account rebuilding process. Little by little I was buying a few shares here and there until I reach 100 shares. Then I started trading options around that position.
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