Posted by Martin May 07, 2022
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2022 Week 18 investing and trading report

The first week of May trading hasn’t started very well and I have very low expectations for this month. I am a bit skeptical that it would improve. Our buying power is extremely depressed which prevents me from trading and investing in this market. As of today, I have over $68,000 in cash that I cannot use because it is used for margin collateral. Given that our account’s Net-Liq is $90,000 it means that I am almost in a cash account and not a margin account. It is what the broker and their clearance company did to my account – raised margin requirements to a level that is almost equal to a cash account. A result of high volatility and fear in the markets.

Our Net-liq increased slightly by +2.13% last week and overall account is down -14.16% YTD. I hope, that when the market reverses and starts trading up again, this will change. I have not taken any physical losses by closing trades. All options trades were rolled, so currently, they show a realized loss but unrealized gain. And I sold no stock positions. I was buying stocks during this market selloff.

Here is our investing and trading report:

Account Value:	$89,826.68	$1,917.74	2.13%
Options trading results
Options Premiums Received:	-$1,831.00
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:	-$1,831.00	-2.04%
Options Premiums YTD:	$16,448.00	+18.31%
Dividend income results
Dividends Received:	$11.64
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:	$11.64
Dividends YTD:	$1,778.88
Portfolio metrics
Portfolio Yield:	5.44%
Portfolio Dividend Growth:	11.61%
Ann. Div Income & YOC in 10 yrs:	$57,839.94	37.53%
Ann. Div Income & YOC in 20 yrs:	$2,016,299.41	1,308.18%
Ann. Div Income & YOC in 25 yrs:	$38,260,839.66	24,823.66%
Ann. Div Income & YOC in 30 yrs:	$2,469,206,559.48	1,602,022.93%
Portfolio Alpha:	12.72%
Sharpe Ratio:	2.86	GREAT
Portfolio Weighted Beta:	0.50
CAGR:	416.34%
AROC:	13.73%
TROC:	9.24%
Our 2022 Goal
2022 Dividend Goal:	$4,800.00	37.06%	In Progress
2022 Portfolio Value Goal:	$151,638.03	59.24%	In Progress
6-year Portfolio Value Goal:	$175,000.00	51.33%	In Progress
10-year Portfolio Value Goal:	$1,000,000.00	8.98%	In Progress

Dividend Investing and Trading Report

Last week we have received $11.64 in dividends bringing our May’s dividend income at $11.64.

Last week, we have not purchased any dividend stock.

If the market keeps going lower, I will be adding more shares to our portfolio (if my buying power permits as I am low on available funds already).

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:

10 shares of ICSH @ $50.07

Options Investing and Trading Report

Last week we rolled our strangle trades to keep our account safe. Some of those rolls could have been avoided if I had enough cash reserves.

However, these adjustments delivered a loss of -$1,831.00 making our May options income -$1,831.00.

We were actively trading our SPX strategy that delivered $50.00 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 have received $11.64 in dividends last week. Our portfolio currently yields 5.44% at $89,826.68 market value.

Our projected annual dividend income in 10 years is $57,839.94 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 $5,903.74 annual dividend income ($491.98 monthly income). We are 10.21% of our 10 year goal of $57,839.94 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 $141,476.34 to $142,021.49 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 planned on reinvesting all dividends back into those holdings.

Investing and trading ROI

Our options trading delivered a -2.04% monthly ROI in May 2022, totaling a 18.31% 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 -14.16%.

Our options trading averaged $3,289.60 per month this year. If this trend continues, we are on track to make $39,475.20 trading options in 2022. As of today, we have made $16,448.00 trading options.

Old SPX trades repair

Last week we have not adjusted any of our old trades. The market is playing with me. When all the ods looked good and I had a chance to get rid of one bad trade, the market tanked ruining my chance to improve the position. Now I am back at the beginning of my attempt to fix the old 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 aggressive trades.

Investing and trading report in charts

Account Net-Liq

Account Stocks holding

Last week, S&P 500 grew 42.54% since we opened our portfolio while our portfolio grew 7.60%. On YTD basis, the S&P 500 fell -22.22% and our portfolio -22.17%. We are outperforming the market although by a small percentage point.

The numbers above apply to our stock holdings only. Our overall account net-liq is down by -14.16% 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 8.98% 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 51.33% of that goal.

Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 59.24% 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 $1,778.88. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $5,903.74 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 -14.43% (note, data in this section are since March 13, 2021, only as that is the date we started tracking these metrics). Our 2022 cumulative return is -42.03%. That means we erased the entire 2021 revenue as of today. That is a horrible result. But I am optimistic. As I mentioned above, the results are temporary as we are rolling our trades and these rolls cause realized losses while we have open unrealized gains. Once the open trades end (when this horrible market finally calms down), the gains will offset the losses.

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 May 07, 2022
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2022 SPX put credit spreads trading review – week 18

For 18 weeks ur SPX PCS strategy performed well while the market was selling off. It was not an easy journey this year. When I started this strategy at the end of 2021 I hoped for a better start and large profits. The market had a different opinion.

Despite heavy selling, we finished up by 0.49% while SPX lost -0.21%. However, I didn’t trade much, rather preserving cash and waiting. I only opened a Friday’s trade based on our plan and used the credit to adjust old trades that got in trouble during the last 18 weeks. Until this market recovers, I will be trading Friday’s trades only as these are the most conservative ones and have the best risk-reward ratio. The market is so depressed and even if it sells more in the upcoming weeks, our Friday’s trade strikes will be so low that it will be unlikely to lose.

Our overall SPX account is up +182.00% since the beginning of this program, and we have $785 in unrealized gains. That is a good sign because the account is set to grow in the near future.

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 & 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 a directional options trading. We are selling credit put spreads to collect premiums and hopefully, these spreads expire worthlessly or we buy them back for a small debit.

We use a set of indicators (mostly based on moving averages) and market sentiment that generates bullish signals. The trading is based on a “trend following strategy”. If we have a bullish signal and bullish trend, we open the trade. 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.

Then 2022 year came and put this strategy to a hard test in the violent market. The signals worked well, but we had old trades that got busted and didn’t have time to perform. So I had to evaluate the strategy. The original strategy was based on letting the trade expire in the money and take a loss. But I didn’t like it. I tested an option of rolling the trade rather than letting it be and I feel a lot more comfortable with that.

Rolling a trade is still a losing trade because we close the old trade for a loss and open a new trade for a credit that partially offsets the loss. We also add a credit call spread or widen the put spread to get more credit. I believe by managing these trades and offsetting them with an opposite, adjusted, or new trade will result in fewer losses and larger gains. And so far, this strategy works.

Here you can see all our trades:

Click on the picture above to see the entire list.

We do not trade 0 DTE trades. 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 going mostly 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 even open more aggressive trades (which is not the case today due to the market’s correction).

How much money you can trade?

As you can see in the table below, the highest amount of cash to trade this strategy is $19,190. That will allow for all 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 original 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 and 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 $50.00 gain last week.

Initial account value (since inception: 12/07/2021):	$3,600.00
Last week beginning value:	$10,101.95
Last week ending value:	$10,151.95 (+0.49%; total: +182.00%)
The highest capital requirements to trade this strategy:	$19,190
Current capital at risk:	$17,215
Unrealized Gain:	$785 (4.56%)
Realized Gain:	$5,652 (+32.83%)
Total Gain:	$6,437 (+37.39%)
Win Ratio:	68%
Average Winner:	$220
Average Loser:	$299

SPX PCS account value

Our SPX net-liq increased slightly last week creating a new all-time high. But the market is volatile too much and our trading activity will be adjusting our existing trades, and opening Friday’s trades, only. We will evaluate case by case which trade to take.

SPX PCS account vs SPX index net liq

However, it is nice to see that our account is growing while the market is struggling, going sideways or down. Although I must admit, trading in this year’s environment is very frustrating.

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 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!

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Posted by Martin April 30, 2022
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2022 Week 17 investing and trading report

April trading in our main account ended relatively well compared to the entire market. Our options income ended up, our dividend income also ended up, but our net liquidation value got a severe beating. Our Net-liq is down -22.08% compared to March 2022 and overall account is down -15.99% YTD. I hope, that when the market reverses and starts trading up again, this will change. I have not taken any losses, meaning final losses. All options trades were rolled, so currently, they show a realized loss but unrealized gain. And I sold no stock positions. In fact, I was adding stocks during this market slump. While everyone is panicking over a recession and technology stocks slowdown. The slowdown may be cyclical after a few years of growth that can easily resume soon after. But the market participants are not rational and sell everything without thinking. So while they are panicking and selling, I am buying. Like Warren Buffett who started buying stocks recently while everyone else is freaking about a recession.

Here is our investing and trading report:

Account Value:	$87,908.94	-$10,141.53	-11.54%
Options trading results
Options Premiums Received:	-$2,823.00
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%
Options Premiums YTD:	$18,279.00	+20.79%
Dividend income results
Dividends Received:	$226.26
01 January 2022 Dividends:	$303.38
02 February 2022 Dividends:	$732.81
03 March 2022 Dividends:	$393.74
04 April 2022 Dividends:	$337.31
Dividends YTD:	$1,767.24
Portfolio metrics
Portfolio Yield:	5.56%
Portfolio Dividend Growth:	11.61%
Ann. Div Income & YOC in 10 yrs:	$59,913.78	39.00%
Ann. Div Income & YOC in 20 yrs:	$2,187,981.30	1,424.19%
Ann. Div Income & YOC in 25 yrs:	$43,248,057.67	28,150.82%
Ann. Div Income & YOC in 30 yrs:	$2,949,317,276.65	1,919,755.30%
Portfolio Alpha:	15.10%
Sharpe Ratio:	2.90	GREAT
Portfolio Weighted Beta:	0.52
CAGR:	418.01%
AROC:	15.22%
TROC:	8.24%
Our 2022 Goal
2022 Dividend Goal:	$4,800.00	36.82%	In Progress
2022 Portfolio Value Goal:	$151,638.03	57.97%	In Progress
6-year Portfolio Value Goal:	$175,000.00	50.23%	In Progress
10-year Portfolio Value Goal:	$1,000,000.00	8.79%	In Progress

Dividend Investing and Trading Report

Last week we have received $226.26 in dividends bringing our April’s dividend income at $337.31.

Last week, we bought these dividend growth stocks:

1 share of MTB @ $171.10

We closed our entire position in Alcoa (AA) as it didn’t fit our portfolio goal and strategy.

If the market keeps going lower, I will be adding more shares to our portfolio (if my buying power permits as I am low on available funds already).

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:

50 shares of ICSH @ $50.10

Unfortunately, on Friday, during the selloff, I had to sell the ICSH position to release buying power (it is the purpose of parking cash in this fund after all).

7 shares of SPXL @ $94.17
2 shares of SNOW @ $183.79

Options Investing and Trading Report

Last week we rolled our strangle trades to keep our account safe. Some of those rolls could have been avoided if I had enough cash reserves.

However, these adjustments delivered a loss of -$2,823.00 making our April options income $1,047.00.

We were actively trading our SPX strategy that delivered $170.00 gain.

Expected Future Dividend Income

We have received $226.26 in dividends last week. Our portfolio currently yields 5.56% at $87,908.94 market value.

Our projected annual dividend income in 10 years is $59,913.78 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 $5,883.34 annual dividend income ($490.28 monthly income). We are 9.82% of our 10 year goal of $59,913.78 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 $148,744.46 to $141,476.34 last week.

Investing and trading ROI

Our options trading delivered a 1.19% monthly ROI in April 2022, totaling a 20.79% 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 -15.99%.

Our options trading averaged $4,569.75 per month this year. If this trend continues, we are on track to make $54,837.00 trading options in 2022. As of today, we have made $18,279.00 trading options.

Old SPX trades repair