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Posted by Martin February 12, 2022
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2022 Week 06 investing and trading report


Last week was truly bad. Our net-liquidating value got hit hard, partially because of buying beaten-down tech stocks like PayPal, Tesla, or Netflix and they got beaten again. But it is a temporary drawdown of our investing and trading and I expect it to recover when the market stops freaking about interest rates and Ukraine. And the rates are good for the market, mark my words. As soon as the FED finally raises the rates, the market will rally.

Our options trading was great at the beginning of the week. We made over $3,000 of additional options premiums but when the market tanked, we had to take some trades off to release buying power, so we ended up flat for the week.
 

Here is our investing and trading report:

 

Account Value: $101,416.51 -$5,332.89 -5.26%
Options trading results
Options Premiums Received: -$26.00    
01 January 2022 Options: $8,885.00 +8.36%  
02 February 2022 Options: $5,529.00 +5.20%  
Options Premiums YTD: $14,414.00 +14.21%  
Dividend income results
Dividends Received: $11.18    
01 January 2022 Dividends: $303.38    
02 February 2022 Dividends: $73.57    
Dividends YTD: $376.95    
Portfolio metrics
Portfolio Yield: 5.60%    
Portfolio Dividend Growth: 7.74%    
Ann. Div Income & YOC in 10 yrs: $36,305.77 23.99%  
Ann. Div Income & YOC in 20 yrs: $361,879.08 239.15%  
Ann. Div Income & YOC in 25 yrs: $1,873,463.37 1238.06%  
Ann. Div Income & YOC in 30 yrs: $15,710,296.09 10,382.03%  
Portfolio Alpha: 9.32%    
Portfolio Weighted Beta: 0.43    
CAGR: 514.68%    
AROC: 14.13%    
TROC: 10.76%    
Our 2022 Goal
2022 Dividend Goal: $4,800.00 7.85% In Progress
2022 Portfolio Value Goal: $151,638.03 66.88% In Progress
6-year Portfolio Value Goal: $175,000.00 57.95% In Progress
10-year Portfolio Value Goal: $1,000,000.00 10.14% In Progress

 

Dividend Investing and Trading Report

 
Last week we have received $11.18 in dividends bringing February’s dividend income to $73.57.

We bought the following dividend stocks:
 

  • 17 shares of CSQ @ $17.60
     

Here you can see our dividend income per stock holding:

 
Annual Dividend Payout week 06

 

Growth stocks Investing and Trading Report

 

Last week we bought the following growth stocks and funds:
 

  • 12 shares of ICSH @ $50.31
  • 5 shares of PYPL @ $118.55

 

Options Investing and Trading Report

 
Last week we rolled our strangle trades to keep our account safe. That raised cash and buying power.

These adjustments delivered a loss of -$26.00 bringing February total to $5,529.00.

 

We were actively trading our SPX strategy that delivered $720.00 weekly income.

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 $11.18 in dividends last week. Our portfolio currently yields 5.60% at $101,416.51 market value.

 
Our projected annual dividend income in 10 years is $36,305.77 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 $5,770.35 annual dividend income ($480.86 monthly income). We are 15.89% of our 10 year goal of $36,305.77 dividend income.

 
Future Divi on YOC week 06
 

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 $155,197.02 to $156,648.84 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.

 
Stock holdings week 06
 

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 5.45% monthly ROI in February 2022, totaling a 14.21% ROI YTD. We hope that in 2022 we exceed our 45% annual revenue selling options against dividend stocks target!

Our entire account is down -3.08%.
 

Our options trading averaged $7,207.00 per month this year. If this trend continues, we are on track to make $86,484.00 trading options in 2022. As of today, we have made $14,414.00 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.

The market seems to be presenting a good opportunity to adjust one old SPX trade. It will be a debit trade and it will consume quite a bit of the buying power. I might take it. The trade has a substantial profit on the call side and I am thinking to take the call side off and convert it into a put side. I will see what happens next week.

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 crashed on Thursday and Friday last week when it failed to gain momentum and run higher after Wednesday’s strong rally. Now, it seems that the market is going to retest the previous lows. However, the two selloffs were news-driven and these moves typically do not have a long-lasting effect. What typically moves the markets are two types of news and you should be asking, is it a Known-Unknown or Unknown-Unknown type of news?

A Known-Unknown is something that is already known ahead of time but there are some unknown parts. Today Russia-Ukraine news is an example. We already knew Russia was advancing & combative. That some conflict was likely. We just didn’t know when it would happen.

So it’s fair to say that some of this conflict should already be priced into stocks. Some parts were already known and planned for by buyers and sellers. An Unknown-Unknown would be if war broke out and we had no prior notice (such as 9/11). That reaction can be severe.

The same goes with James Bullard and his remarks on the FED interest hikes he said on Thursday after the hot inflation data when he was calling for an emergency meeting. Again. it was a Known-Unknown. Everyone knows that inflation is high and everyone knows that FED is going to do something about it later or sooner. There is no doubt. So freaking about it is an overreaction.

The FED will not let inflation go out of control so at some point, they will raise the rates and it doesn’t matter how much. If they raise them too much, they can always slash them back down and pour even more money into the economy. The same way they did in 2018 – 2019 when they raise the rates. The markets didn’t like it and crashed a little over 20%. The FED quickly dropped the rates back to zero.

It is my expectation that the markets will like the interest rates hike once it finally happens and they will rally very strongly. And history teaches us that we may expect a single-digit gain by the end of the year (maybe 8% to 9% gain this year??).

 

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

 

TW Account Net-Liq week 06

 

Account Stocks holding

 
TW Account holdings week 06
 

Last week, S&P 500 grew 52.75% since we opened our portfolio while our portfolio grew 20.77%. On YTD basis, the S&P 500 fell -12.01% and our portfolio -9.00%. 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 is up by -3.08% this year thanks to our options strategies that generated enough income to stay up a bit.
 

Stock holdings Growth YTD

 
TW Account 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 10.14% 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 57.95% of that goal.
 

Our 2022 year goal is to grow this account to a $151,638.03. and today we accomplished 66.88% of this goal.

 

Investing and Trading Report – Options Monthly Income

 
TW Options Income week 06
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Income week 06
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 06
 

We planned to make $4,800.00 in dividend income in 2022. As of today, we received $376.95. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $5,770.35 a year.
 

TW Received vs Future Dividends week 06

 

Our account cumulative return

 

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

TW cumulative (overall) return wk 06
 

Here is the cumulative return for the year 2022:
 

TW cumulative (2022) return wk 06
 

Our win ratio overall:
 

TW win ratio (overall) wk 06
 

Our win ratio for 2022:
 

TW win ratio (2022) wk 06
 

As of today, our account overall cumulative return is 26.14% (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 -14.56%.

I have a favor to ask. If you like this report, please, hit the like like button 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 February 12, 2022
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2022 SPX put credit spreads trading review – week 06


Last week’s market was horrible. The new rally was rejected and the markets lost yet our SPX strategy gained. The gain is however in danger if this market continues freaking out about already known things (nothing that sent the market down was unknown). If the market continues lower, we will be adding call spreads and roll our put spreads or let them expire in the money for a loss (while our call spreads help offset the loss).

Despite the horrible week, our SPX PCS strategy finished the week up +11.99% while SPX was down -1.82%. Our overall SPX account is up +86.86% since the beginning of this program.
 

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 Positive New 7 DTE trade opened
credit: $145
Exp: Feb14
TUESDAY Positive New 30 DTE trade opened
credit: $275
Exp: Mar11
WEDNESDAY Positive New 7 DTE Call credit spread trade opened
credit: $310
Exp: Feb16
FRIDAY Negative No new trade
EVERY MONTH No new trade

 

On Monday, our entry signal was positive and we opened a new trade collecting $145 credit. The market was showing some weakness so we reduced our risk lowering our delta. As of today, the trade is still safe but if the market continues going down, we will need to adjust this trade.
 

On Tuesday, our entry signal was positive and we opened a new trade. I was still cautious lowered the delta. We collected a $275 credit for this trade. The trade is currently in the money but time is on our side so we will wait.
 

On Wednesday, our entry signal was positive, and we opened a new put credit spread. Unfortunately, when the stock dropped on Thursday (again) on the comments of the St. Louis James Bullard that he was open for more rate hikes and other nonsense. The market collapsed. Now, the trade is in the money. We added a call spread to hedge this trade and collected additional $350 credit. We will wait for the market to recover and if not, we will roll the trade away (it will be a debit trade though).
 

On Friday, the signal for the 60 DTE trade was negative and we remained out of the market.
 

We didn’t open any new 120 DTE debit hedging trade this week.
 

Here are our delayed open trades:
 

SPX PCS delayed trades week 6
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 $720.00 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: $6,007.00
Last week ending value: $6,727.00 (+11.99%; total: +66.86%)
The highest capital requirements to trade this strategy: $11,998
Unrealized Gain: $947 (+8.57%)
Realized Gain: $2,180 (+19.72%)
Total Gain: $3,127 (+28.29%)

 

SPX PCS account value
SPX PCS account value
 
Our SPX net-liq increased a bit last week. 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
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
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 to use the gains to roll the trades that are in the money.

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:

 

 

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 February 05, 2022
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2022 Week 04 investing and trading report


The first week of February was a week of recovery. The stock market bounced from the lows and our investing and trading bounced up too. At the end of the week, we saw a pullback that had an impact on our stocks too, but overall, we performed well.

If the stock continues higher next week, we will see better gains. If it continues lower or even decides to re-test the lows, we will have to survive another wave of pain. I still have some cash left so, if the market goes bust, I will be buying cheap stocks.
 

Here is our investing and trading report:

 

Account Value: $106,749.40 $476.81 0.45%
Options trading results
Options Premiums Received: $5,555.00    
01 January 2022 Options: $8,885.00 +8.36%  
02 February 2022 Options: $5,555.00 +5.20%  
Options Premiums YTD: $14,440.00 +13.53%  
Dividend income results
Dividends Received: $62.39    
01 January 2022 Dividends: $303.38    
02 February 2022 Dividends: $62.39    
Dividends YTD: $365.77    
Portfolio metrics
Portfolio Yield: 5.64%    
Portfolio Dividend Growth: 7.87%    
Ann. Div Income & YOC in 10 yrs: $37,021.90 24.75%  
Ann. Div Income & YOC in 20 yrs: $388,799.31 259.91%  
Ann. Div Income & YOC in 25 yrs: $2,110,909.42 1411.12%  
Ann. Div Income & YOC in 30 yrs: $18,989,434.17 12,694.22%  
Portfolio Alpha: 8.37%    
Portfolio Weighted Beta: 0.46    
CAGR: 533.57%    
AROC: 13.78%    
TROC: 11.37%    
Our 2022 Goal
2022 Dividend Goal: $4,800.00 7.62% In Progress
2022 Portfolio Value Goal: $151,638.03 70.40% In Progress
6-year Portfolio Value Goal: $175,000.00 61.00% In Progress
10-year Portfolio Value Goal: $1,000,000.00 10.67% In Progress

 

Dividend Investing and Trading Report

 
Last week we have received $62.39 in dividends bringing February’s dividend income to $62.39.

We bought the following dividend stocks:
 

  • 4 shares or BAC @ $46.76
     

Here you can see our dividend income per stock holding:

 
Annual Dividend Payout week 05

 

Growth stocks Investing and Trading Report

 

Last week we didn’t buy any growth stocks.

 

Options Investing and Trading Report

 
Last week we rolled our strangle trades to keep our account safe. That raised cash and buying power.

These adjustments delivered income of $5,555.00 bringing February total to $5,555.00.

 

We were actively trading our SPX strategy that delivered $550.00 weekly income.

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 $62.39 in dividends last week. Our portfolio currently yields 5.64% at $106,749.40 market value.

 
Our projected annual dividend income in 10 years is $37,021.90 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 $5,777.94 annual dividend income ($481.49 monthly income). We are 15.61% of our 10 year goal of $37,021.90 dividend income.

 
Future Divi on YOC week 05
 

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 $152,365.36 to $155,197.02 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.

 
Stock holdings week 05
 

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 5.20% monthly ROI in February 2022, totaling a 13.53% ROI YTD. We hope that in 2022 we exceed our 45% annual revenue selling options against dividend stocks target!

Our entire account is up 2.01%.
 

Our options trading averaged $7,220.00 per month this year. If this trend continues, we are on track to make $86,640.00 trading options in 2022. As of today, we have made $14,440.00 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.

The market seems to be presenting a good opportunity to adjust one old SPX trade. It will be a debit trade and it will consume quite a bit of the buying power. I might take it. The trade has a substantial profit on the call side and I am thinking to take the call side off and convert it into a put side. I will see what happens next week.

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 did find support at the $4315 level and bounced. It even went above the 200-day MA, closed above it but peaked at 4600 level. Then the bulls lost steam and a shooting star occurred. The market reversed, using Facebook’s 26% stock crash as a catalyst. The stock dropped but it was bought up intraday – twice. That is a good sign, although a weak one.

 
SPX prediction
 

Then Amazon reported earnings and that pushed the stock up 13%+. And the market went up too. But then it sold off on strong job report data. Good news is bad news. Wall Street got spooked by good data fearing FED might be tapering and raising the interest rates. Like it was planning not to.

The amount of bearishness out there is outstanding. The bearish mood, fear, and negativity are far worse than in the 2007-2008 and 2020 pandemic crash. Though, there is no fundamental support for this bearishness. What does it tell you? The market is typically designed to punish. If there is too much bullishness, it tends to punish bulls. If there are too many bears, it punishes bears. We have too many bears out there.

 

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

 

TW Account Net-Liq week 05

 

Account Stocks holding

 
TW Account holdings week 05
 

Last week, S&P 500 grew 55.58% since we opened our portfolio while our portfolio grew 21.79%. On YTD basis, the S&P 500 fell -9.18% and our portfolio -7.98%. 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 is up by 2.01% this year thanks to our options strategies that generated enough income to stay up a bit.
 

Stock holdings Growth YTD

 
TW Account 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 10.67% 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 61.00% of that goal.
 

Our 2022 year goal is to grow this account to a $151,638.03. and today we accomplished 70.40% of this goal.

 

Investing and Trading Report – Options Monthly Income

 
TW Options Income week 05
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Income week 05
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 05
 

We planned to make $4,800.00 in dividend income in 2022. As of today, we received $365.77. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $5,777.94 a year.
 

TW Received vs Future Dividends week 05

 

Our account cumulative return

 

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

TW cumulative (overall) return wk 05
 

Here is the cumulative return for the year 2022:
 

TW cumulative (2022) return wk 05
 

Our win ratio overall:
 

TW win ratio (overall) wk 05
 

Our win ratio for 2022:
 

TW win ratio (2022) wk 05
 

As of today, our account overall cumulative return is 32.77% (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 -10.06%.

I have a favor to ask. If you like this report, please, hit the like like button 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:
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Posted by Martin February 05, 2022
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2022 SPX put credit spreads trading review – week 05


The market is truly treacherous as some people out there say. The SPX went down hard just to be bought back the same day and erased all previous losses. Trading in this environment is extremely difficult. That’s why I am happy to have my strategy trading SPX credit spreads. It is based on combining several indicators and oscillators such as moving averages, Bollinger bands, and relative strengths of several non-correlated sectors on the different time frames from daily to monthly frames. It doesn’t provide buy signals or sell signals. It is not a magic trading formula. It still needs that damn human factor to be applied (which is the weakest link in the chain). The strategy gives me a clear view of the trend. Is it a strong trend, wacky, shaky, or a raging bull? Last week I saw a strong trend from the lows but then it weakened. While others panicked, I saw it still tradeable. Weak, but OK to trade.

Our SPX strategy is designed to stay away from the market if it is not trending and the signals are negative. Last week was good for a few days to take our trades. But the signals are getting weak and if this continues, on Monday, we may be negative again and thus stay away. Or reverse to call spreads. Or instead of a 40 delta trade, we take 14 delta trade. Or 5 delta trade…

Our SPX PCS strategy finished the week up +10.08% while SPX was up only +1.55%. Our overall account is up +66.86% since the beginning of this program.
 

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 Positive New 7 DTE trade opened
credit: $310
Exp: Feb7
TUESDAY Positive New 30 DTE trade opened
credit: $135
Exp: Mar31
WEDNESDAY Positive New 7 DTE Call credit spread trade opened
credit: $310
Exp: Feb9
FRIDAY Positive New 60 DTE trade opened
credit: $95
Exp: Apr14
EVERY MONTH New 120 DTE hedge opened
debit: $95
Exp: Jun17

 

On Monday, our entry signal was positive and we opened a new trade collecting $310 credit. The trade is in a good shape so far and unless the market sells off again on Monday, this trade should expire worthless for a full profit.
 

On Tuesday, our entry signal was positive and we opened a new trade. However, I was cautious expecting a pull back from the rally (which happened later during the week) so I decided to go conservative, and instead of delta 45, I used delta 20. We collected a $135 credit for this trade. So far the trade is in good shape and working.

On Wednesday, our entry signal was positive, and we opened a new put credit spread. Unfortunately, when the stock dropped on Thursday, the trade got in the money. We will wait for the market to recover and if not, we will roll the trade away (it will be a debit trade though).

On Friday, the signal for the 60 DTE trade was positive and we opened a new 60 DTE credit spread.

We opened a new 120 DTE debit hedging trade this week.
 

Here are our delayed open trades:
 

SPX PCS delayed trades week 5
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 $550.00 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: $5,457.00
Last week ending value: $6,007.00 (+66.86%)
The highest capital requirements to trade this strategy: $11,998
Unrealized Gain: $972 (+8.81%)
Realized Gain: $1,435 (+13.01%)
Total Gain: $2,407 (+21.83%)

 

SPX PCS account value
SPX PCS account value
 
Our SPX net-liq increased a bit last week. 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
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
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:

 

 

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 February 03, 2022
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Meta spooked the markets, will Amazon lift it?


As expected, Wall Street puked over former Facebook, Meta, that dragged down everything that looked like a tech stock from a very far distance. And now, the question is, will Amazon lift the market?

It is easy for panickers to throw away everything including their underwear, but difficult to jump back in. Some don’t even go back in as they are still scared, crying in the corner, and hiding.

The S&P500 ended down 111 points (-2.44%), Thank you, Meta!

 
Meta spooked SPX
 

But then, Amazon reported earnings after hours and announced that they would jack up their prime membership fees by 17%. The stock skyrocketed in AH trading by almost 20%. Meta dropped 20%, Amazon went up by 20%. OK, it was only 18% but before I could make a new screenshot, it dropped a bit to 16%… I hope they won’t say something ugly during the conference call to spook the markets more and reverse this green price development

 
Meta vs AMZN
 

This had a positive development on the SPX market as it erased half of the losses in the after-hours (AH) trading:

 
SPX After Hours
 

And now the question remains, will this have a positive impact on the market tomorrow? I hope so. But if not, I won’t mind it either.
 
 




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Posted by Martin February 02, 2022
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Facebook missed… Wall Street pooped 20%, and tomorrow may be an S&P 500 selloff


Apple and Google shined while social media such as Facebook, Snap, and streaming providers like Netflix pooped. These “distractions” providers had something in common: a loss of users growth or users engagement growth.

But the problem is that Wall Street is looking at these companies through the lenses of the 2020 Covid era. People were home most of the time, watching movies, playing games, having Zoom meetings, and so on. In my opinion, a typical user growth or user engagement was distorted by these days.

The sketch below indicates a theoretical engagement if there was no Covid (the red dashed line). And let’s assume that the growth would have a steady, slow, and upward moving trend:

 
Facebook growth
 

And then, the Covid hit, and the growth went stratospherically up. Of course, everyone was at home and engaged in all the social media out there. Young Robinhooders were gambling thousands of dollars buying worthless out of the money calls that were expiring the next day and losing it all. And the ole good Wall Street had an orgasm over the rapid growth, ignoring, that it was a distorted growth, not a normal, typical growth (same with overall S&P 500 earnings, by the way). It was obvious that once the Covid goes away and we return back to normal, this growth will slow as well.

 
Facebook fall
 

And now, Wall Street is surprised that the growth of the distractions was not as they thought originally and pooped. Facebook lost almost 23% after hours. It is definitely an overreaction and tomorrow morning it may recover a bit.
 

Today’s ADP private payroll drop may impact Friday’s official jobs report for January and combined with the FB earnings miss may have an impact on the S&P500 trading tomorrow. So, expect a down day.
 
 




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Posted by Martin January 29, 2022
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2022 Week 04 investing and trading report


January is over and it was a difficult month for our investing and trading. Our account got slammed a lot but we were not taking any losses. The net-liq was going down as our stock positions were losing value and our options were gaining value due to increased volatility.

We closed some of our positions for a small loss, some for a profit, and some for breakeven. Nevertheless, rebalancing our positions helped us to raise cash, and now, when the market is near the bottom, we are buying back our positions and opening new stock holdings. When the market fully recovers or starts recovering, I expect our account to shoot up too. Even a side-moving market will increase our account.
 

Here is our investing and trading report:

 

Account Value: $106,272.59 $8,457.30 8.65%
Options trading results
Options Premiums Received: $2,764.00    
01 January 2022 Options: $8,470.00 +7.97%  
02 February 2022 Options: $0.00 +0.0%  
Options Premiums YTD: $8,470.00 +7.97%  
Dividend income results
Dividends Received: $0.00    
01 January 2022 Dividends: $232.02    
02 February 2022 Dividends: $0.00    
Dividends YTD: $232.02    
Portfolio metrics
Portfolio Yield: 5.65%    
Portfolio Dividend Growth: 7.87%    
Ann. Div Income & YOC in 10 yrs: $37,116.91 24.84%  
Ann. Div Income & YOC in 20 yrs: $391,090.70 261.77%  
Ann. Div Income & YOC in 25 yrs: $2,128,881.60 1424.91%  
Ann. Div Income & YOC in 30 yrs: $19,216,969.66 12,862.40%  
Portfolio Alpha: 2.76%    
Portfolio Weighted Beta: 0.46    
CAGR: 540.55%    
AROC: 6.44%    
TROC: 11.72%    
Our 2022 Goal
2022 Dividend Goal: $4,800.00 4.83% In Progress
2022 Portfolio Value Goal: $151,638.03 70.08% In Progress
6-year Portfolio Value Goal: $175,000.00 60.73% In Progress
10-year Portfolio Value Goal: $1,000,000.00 10.63% In Progress

 

Dividend Investing and Trading Report

 
Last week we have received $0.00 in dividends bringing January’s dividend income to $232.02.

We bought the following dividend stocks:

  • 1 share of MSFT @ $291.56
  • 100 shares of ARCC @ $21.52
  • 10 shares or IEP @ $52.77
  • 23 shares or RYLD @ $22.30
  • 45 shares or GAIN @ $15.55
  • 2 shares or BAC @ $45.38

Here you can see our dividend income per stock holding:

 
Annual Dividend Payout week 04

 

Growth stocks Investing and Trading Report

 

Last week we bought the following growth stocks:

  • 10 shares of NFLX @ $384.64
  • 8 shares of SNOW @ $253.74
  • 5 shares of TSLA @ $922.57
  • 5 shares of AAPL @ $162.08
  • 1 share of AMZN @ $2,804.87

The selloff was a gift for us to buy good quality growth stocks for a cheap price. And if the selling continues in the coming weeks, we will be adding more shares.

 

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 $2,764.00 bringing January total to $8,470.00.

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

We were actively trading our SPX strategy that delivered $192.00 weekly income.

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 $0.00 in dividends last week. Our portfolio currently yields 4.83% at $106,272.59 market value.

 
Our projected annual dividend income in 10 years is $37,116.91 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 $5,774.58 annual dividend income ($481.21 monthly income). We are 15.56% of our 10 year goal of $37,116.91 dividend income.

 
Future Divi on YOC week 04
 

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 $132,015.51 to $152,365.36 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.

 
Stock holdings week 04
 

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 7.97% monthly ROI in January 2022, totaling a 7.97% ROI YTD. We hope that in 2022 we exceed our 45% annual revenue selling options against dividend stocks target!

Our entire account is up 1.56% outperforming our projections and the market.
 

Our options trading averaged $8,470.00 per month this year. If this trend continues, we are on track to make $101,640.00 trading options in 2022. As of today, we have made $8,470.00 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 appears to be finding its support at the $4315 level. If that level holds bulls may step in and push this market higher. We have a few obstacles to overcome – a 200-day MA and previous support, now resistance.

 
SPX prediction
 

If we bounce off both we may go lower and retest the lows, or even make new lows. If we break up and above we may see the rally recovery. But, as of now, we must wait to find out.

 

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

 

TW Account Net-Liq week 04

 

Account Stocks holding

 
TW Account holdings week 04
 

Last week, S&P 500 grew 53.21% since we opened our portfolio while our portfolio grew 18.40%. On YTD basis, the S&P 500 fell -11.56% and our portfolio -11.38%. 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 is up by 1.56% this year thanks to our options strategies that generated enough income to stay up a bit.
 

Stock holdings Growth YTD

 
TW Account 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 10.63% 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 60.73% of that goal.
 

Our 2022 year goal is to grow this account to a $151,638.03. and today we accomplished 70.08% of this goal.

 

Investing and Trading Report – Options Monthly Income

 
TW Options Income week 04
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Income week 04
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 04
 

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 $5,774.58 a year.
 

TW Received vs Future Dividends week 04

 

Our account cumulative return

 

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

TW cumulative (overall) return wk 04
 

Here is the cumulative return for the year 2022:
 

TW cumulative (2022) return wk 04
 

Our win ratio overall:
 

TW win ratio (overall) wk 04
 

Our win ratio for 2022:
 

TW win ratio (2022) wk 04
 

As of today, our account overall cumulative return is 32.18% (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 -10.46%.

I have a favor to ask. If you like this report, please, hit the like like button 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 January 29, 2022
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January 2022 $100 Challenge account review


January 2022 was a rout and our account got hammered by volatility. It is an unfortunate result of trading a small account. Our challenge account is now underperforming SPX and our goal. But I see it positively in the near future.
 

Accumulation phase

 
The account is underperforming our goal but it is on the path to success. We are now trading small trades (strangles) and we will continue accumulating shares for our next options trade. The strangle trades are consuming collateral buying power but as they near towards expiration we will see a jump in BP and net-liq. We had to exit our AES trade as the market was so volatile that we were not able to manage it. But once the market calms down, we will re-enter the position.

We are trading strangles because they are easier to manage compared to Iron Condors or spreads. It is why we are not engaged in trading SPX credit put spreads yet because these can be profitable but one trade against us can wipe our account. We are simply too small and undercapitalized for these types of trades. Strangles are also a bit more expensive as far as capital requirements go. That is why choosing good stocks to trade is crucial. Choose safe, stable stocks, providing enough premium and stability. And that is what we are doing.
 

October 2021 Challenge account review

 

MONTH GOAL $$ ACTUAL $$
June 2021: $203.00 $202.67
July 2021: $306.00 $334.75
August 2021: $409.00 $397.71
September 2021: $512.00 $476.91
October 2021: $615.00 $632.37
November 2021: $718.00 $659.00
December 2021: $821.00 $802.08
January 2022: $924.00 $594.29
February 2022: $1,027.00  
March 2022: $1,130.00  
April 2022: $1,233.00  
May 2022: $1,336.00  

 

$100 Challenge account review

 
From the chart above, the red dot (line) indicates the current account value, compared to the blue line (plan). Our account is trailing our goal. When trading naked options, expect volatility in your net-liq. That can be seen by some as a disadvantage. When trading spreads, your net-liq will be stabilized by neutralizing delta. With naked options, you would have to choose other instruments to do so, for example owning stocks to neutralize your call side. We do not have this yet as our account is small, but we are building our position.
 

October 2021 Overall Challenge account review

 
The chart below indicates our account value compared to the overall goal and plan to grow $100 investment into a $75,000 portfolio. As of today, we are at the beginning of our journey.

YEAR CONTRIBUTIONS $$ GOAL $$ ACTUAL $$
Year 0: $100.00 $100.00 $100.00
Year 1: $1,300.00 $1,336.00 $594.29
Year 2: $2,500.00 $3,016.96  
Year 3: $3,700.00 $5,303.07  
Year 4: $4,900.00 $8,412.17  
Year 5: $6,100.00 $12,640.55  
Year 6: $7,300.00 $18,391.15  
Year 7: $8,500.00 $26,211.96  
Year 8: $9,700.00 $36,848.27  
Year 9: $10,900.00 $51,313.64  
Year 10: $12,100.00 $70,986.56  

 

$100 Challenge account review goal

 

September 2021 Challenge account Income

 

Total Invested in Stocks $54.60
Total Unrealized Profit -$3.94
Total Realized Profit -$1.17
Strangles Income $194.00
Dividends Income $12.94
Deposits Total $900.00
Cash $1,157.63
Net-Liq $594.29

 

Cumulative return Challenge account review

 

As of today, our challenge account provided a -42.05% monthly cumulative return.
 

$100 Challenge account review goal

 
$100 Challenge account review goal

 

If you want to see what investments we take, what trades and strategies we will use to grow this small account join our program today and grow your money too. We engage in safe investments, select strategies to maximize winning trades, and grow our portfolio. And you can do it too, today! We do not provide quick rich promises, gambling, or reckless strategies. We want our portfolio to grow steadily and preserve our capital while maximizing returns.
 

As a member, you will have access to the following features:
 

 

 




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Posted by Martin January 29, 2022
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2022 SPX put credit spreads trading review – week 04


January 2022 is over and our SPX strategy once again outperformed the market. The market was horrible last week, full of volatile zig-zag moving and losses. However, it seems that the market found support at the $4,315 level. If it holds we may see the market moving up and that would prop our SPX strategy even more. If the markets start trending higher, we will be taking every trade and riding the market up.

Our SPX strategy is designed to stay away from the market if it is not trending and the signals are negative. During January’s selling, we stayed out for the most part of the trading days waiting for our opportunity to jump in. That opportunity may be approaching.

Our SPX PCS strategy finished the week up +3.65% while SPX was losing. However, by the end of the week, SPX had a strong rally on Friday and finished up by +0.77%. Our account is up 51.58% since the beginning of this program. If the selling continues, I might start seeing some troubles as our Friday’s 50 DTE trades may get in the money. If the selling ended last week, we may see our account spiking even more as we will be able to take our 7 DTE trades which we stayed out when the SPX fell.
 

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: $200
Exp: Feb2
FRIDAY Positive New 60 DTE trade opened
credit: $100
Exp: Mar31
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 positive and we opened a new 60 DTE credit spread.

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 week 4
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 $192.00 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: $5,265.00
Last week ending value: $5,457.00 (+51.58%)
The highest capital requirements to trade this strategy: $9,348
Unrealized Gain: $652 (+6.97%)
Realized Gain: $1,205 (+12.89%)
Total Gain: $1,857 (+19.87%)

 

SPX PCS account value
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
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
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:

 

 

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 January 24, 2022
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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.

 
SPX retail investors selloff
 

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:

 
retail investors imbalance
 

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:

 
SPX futures
 

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:

 
SPX 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.
 
 




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