Posted by Martin April 11, 2022
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What’s with the AT&T (T)?

Wow, AT&T (T) crashed this morning more than 25% after the spinoff was finalized over the weekend. But then, the media told you that AT&T rallied almost 8% after the spinoff.

So, what is wrong with this chart? How can the stock open below $19 a share when it closed above $23 a share the previous day on Friday and everybody calls it an 8% runup and a victory for AT&T?

There is not much information on this item but this seems to be a discrepancy and not a crash. A discrepancy due to spinoff when the media and their charting systems were not yet able to adjust the price for the spinoff.

So we need to wait a day or two to see what happens next. If the charts get adjusted (in a similar manner to a stock split) then this was a truly remarkable day for the AT&T stock. If the charts remain the same, then the old investors will get busted hard.

Nevertheless, I am happy that I got rid of this stock when it was trading at $30 a share.

But on the other hand, if this stock is truly trading at $19.63 a share, down from $23 a share, then the stock is down to its 20-year low and that could be a great opportunity to buy in:

But, we need to wait for the brokers and chart services to update the data before we jump in.

Why do I think that this is just a discrepancy? It is because I still hold short strangles against AT&T and these were not adjusted. In fact, I cannot even adjust my positions as the options chains are not available. So we need to wait.

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Posted by Martin April 09, 2022
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2022 Week 14 investing and trading report

Our options trading was slow last week. We just adjusted our trades to keep them safe. Many of these trades were debit trades offsetting the credit ones. However, I was aggressively buying dividend and growth stocks and I feel really good about it as I think I bought at a good value.

Our net-liq dropped a bit last week as investors were freaking about a known issue – raising interest rates and FED more hawkish than a hawk. But it is all nonsense. All the things the markets are freaking about are known:

the war in Ukraine – known
high inflation – known
FED raising the rates – known
FED being overly hawkish – known
High yields – known
Yield curve inversion – known

All is known, so the selling pressure is most likely just fear created by big money to scare retail investors into selling while they are buying. But time will show. I am keeping my powder dry for more buying.

Here is our investing and trading report:

Account Value:	$108,477.66	-$4,347.97	-4.01%
Options trading results
Options Premiums Received:	$59.00
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:	$94.00	+0.09%
Options Premiums YTD:	$17,326.00	+15.97%
Dividend income results
Dividends Received:	$36.23
01 January 2022 Dividends:	$303.38
02 February 2022 Dividends:	$732.81
03 March 2022 Dividends:	$393.74
04 April 2022 Dividends:	$60.83
Dividends YTD:	$1,490.76
Portfolio metrics
Portfolio Yield:	5.02%
Portfolio Dividend Growth:	11.61%
Ann. Div Income & YOC in 10 yrs:	$50,883.75	32.61%
Ann. Div Income & YOC in 20 yrs:	$1,501,776.07	962.44%
Ann. Div Income & YOC in 25 yrs:	$24,594,972.65	15,762.15%
Ann. Div Income & YOC in 30 yrs:	$1,299,076,593.10	832,537.38%
Portfolio Alpha:	10.63%
Sharpe Ratio:	1.96	ACCEPTABLE
Portfolio Weighted Beta:	0.48
CAGR:	473.10%
AROC:	12.42%
TROC:	8.65%
Our 2022 Goal
2022 Dividend Goal:	$4,800.00	31.06%	In Progress
2022 Portfolio Value Goal:	$151,638.03	71.54%	In Progress
6-year Portfolio Value Goal:	$175,000.00	61.99%	In Progress
10-year Portfolio Value Goal:	$1,000,000.00	10.85%	In Progress

Dividend Investing and Trading Report

Last week we have received $36.23 in dividends bringing April’s dividend income to $60.83.

Last week, we bought these dividend growth stocks:

43 shares of CSQ @ $17.69
20 shares of RYLD @ $24.02
30 shares of TRIN @ $17.91
2 shares of AAPL @ $175.85
40 shares of BAC @ $39.26
10 shares of O @ $71.34
20 shares of WBA @ $43.12
20 shares of OHI @ $28.49
3 shares of CLX @ $144.70

If the market keeps going lower, I will be adding more shares to our portfolio.

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:

20 shares of TMUS @ $131.48
10 shares of SPXL @ $122.71
15 shares of CROX @ $68.96

Options Investing and Trading Report

Last week we rolled our strangle trades to keep our account safe.

These adjustments delivered income of $59.00 making our April options income $94.00.

We were actively trading our SPX strategy that delivered $445.00 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 $36.23 in dividends last week. Our portfolio currently yields 5.02% at $108,477.66 market value.

Our projected annual dividend income in 10 years is $50,883.75 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 $5,900.27 annual dividend income ($491.69 monthly income). We are 11.60% of our 10 year goal of $50,883.75 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 $154,449.47 to $160,848.53 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 0.09% monthly ROI in April 2022, totaling a 15.97% 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 up +3.66%.

Our options trading averaged $4,331.50 per month this year. If this trend continues, we are on track to make $51,978.00 trading options in 2022. As of today, we have made $17,326.00 trading options.

Old SPX trades repair

Last week we have adjusted one of our old trades rolling it more into the future. Now we have to trade. Now we will be waiting.

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 pulled back a bit last week which in my opinion could be expected after a strong rally. Now the question is whether this pullback turns into something more serious or not. I will be describing possible options in my weekly newsletter. A week ago, the market looked very bullish but last week, one FED official (that cannot agree on the color of an orange) opened her mouth and said something that spooked the market. Now everybody is bearish again. But I think it is the wrong side to be bearish.

If you want to find out more about the market outlook, 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 55.16% since we opened our portfolio while our portfolio grew 19.76%. On YTD basis, the S&P 500 fell -9.61% and our portfolio -10.01%. We are underperforming the market although by a small percentage point.

The numbers above apply to our stock holdings only. Our overall account net-liq is up by 3.66% 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 10.85% 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 61.99% of that goal.

Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 71.54% 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 $1,490.76. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $5,900.27 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 15.31% (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 -21.89%.

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 April 09, 2022
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2022 SPX put credit spreads trading review – week 14

Last week,the SPX PCS strategy finished up by +5.87% while SPX lost -1.27%. Our overall SPX account is up +123.11% since the beginning of this program. However, we still have -$3,035 in unrealized losses. At some point we will have to work hard to offset those losses.

We are also slightly adjusting our trading strategy due to extreme volatility and pushing all deltas down to delta 14 – 15 only. We will collect fewer premiums but stay safer. Once the markets calm down we may become more aggressive again.

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

Overall, the strategy resulted in a $445.00 gain last week. Note that the gain might be unrealized as some or all trades may be still open. We also have quite a few credit call spreads that will give us some hard time in the near future as the market will go higher and we will have to roll them but overall, I expect good returns.

Initial account value (since inception: 12/07/2021):	$3,600.00
Last week beginning value:	$7,586.95
Last week ending value:	$8,031.95 (+5.87%; total: +123.11%)
The highest capital requirements to trade this strategy:	$19,160
Unrealized Gain:	-$3,035 (-18.44%)
Realized Gain:	$7,382 (+44.85%)
Total Gain:	$4,347 (+26.41%)

SPX PCS account value

Our SPX net-liq grew up again last week. The market is volatile too much so we might be adjusting our existing trades and take Friday’s trades only. We will evaluate case by case which trade to take.

SPX PCS account vs SPX index net liq

Our account is outperforming the market so far and I hope that it will continue like that. We have a few bearish expectations and panic still rattling the markets so, we need to slow down a bit to be prepared for any eventuality that this market will go lower and retest the lows.

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 05, 2022
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The end of PCBT

PBCT 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.

PBCT was a dividend aristocrat with 29 years of consecutive dividend increases and a decent yield of around 4%. And I got in at $10 a share. It is now all over. End. Finished.

The MTB bank acquired PBCT and I had a dilemma but not for long. I was thinking, should I keep the MTB and hold the investment? Or should I get rid of it? At first, I didn’t know what the conversion from the PBCT stock to MTB stock would look like and I didn’t have time to research it. I was thinking, that after the merger is done, I would be better off.

But then I learned the details.

The MTB is not on a dividend aristocrats list.

With 100 shares of PBCT, I was receiving $73 annual dividends. But after the conversion at the rate of 0.118, I ended up with 11 shares of MTB, and with a dividend payout of $4.8 per share I ended up with $53 annual dividends. A clear dividend cut.

I no longer owned 100 shares so trading covered calls were out of the question, moreover, my existing calls were in the money (the broker hasn’t adjusted the options as of yet) so I couldn’t trade it anymore. And I received a margin call because the call was no longer covered.

My decision to say goodbye to PBCT and MTB was clear. I closed the position and moved on.

What did you do?

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Posted by Martin April 02, 2022
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March 2022 $100 Challenge account review

In March we didn’t trade much as we are building equity in the account after we had to close our positions at a loss. It is a part of the game that we will time to time take a loss. But we have time on our side and we will take leveraged positions to grow our account, though we will do it at a slower pace than before. We didn’t do much in March but collected dividends.

Accumulation phase

The account is underperforming our goal. We will be investing in building equity positions first and wheeling the positions in March and subsequent months.

March 2022 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	$283.87
March 2022:	$1,130.00	$301.74
April 2022:	$1,233.00
May 2022:	$1,336.00

From the chart above, the red dot (line) indicates the current account value, compared to the blue line (plan). Our account is underperforming 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 the 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 plans to grow the $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	$301.74
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

February 2022 Challenge account Income

Total Invested in Stocks	$255.40
Total Unrealized Profit	$10.38
Total Realized Profit	-$1.17
Strangles Income	-$1,316.00
Dividends Income	$16.56
Deposits Total	$1100.00
Cash	$35.96
Net-Liq	$301.74

Cumulative return Challenge account review

As of today, our challenge account provided a -80.94% monthly cumulative return.

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:

Weekly newsletter which provides market news and outlook, stocks analysis, and options trading course
Account statements
Account trading journal
Archived emails

SUBSCRIBE HERE

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Posted by Martin April 02, 2022
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2022 Week 13 investing and trading report

Our trading performed well last week as our account grew again and our options trading recovered some of the previous losses. Yet we finished March 2022 down as far as options income goes (we were rolling some trades for debit and closing some trades last month to reduce risk. We are slowly returning to add the risk back on.

Here is our investing and trading report:

Account Value:	$112,825.63	+$7,810.12	+6.92%
Options trading results
Options Premiums Received:	$952.00
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:	$35.00	+0.03%
Options Premiums YTD:	$17,267.00	+15.30%
Dividend income results
Dividends Received:	$124.05
01 January 2022 Dividends:	$303.38
02 February 2022 Dividends:	$732.81
03 March 2022 Dividends:	$393.74
04 April 2022 Dividends:	$24.60
Dividends YTD:	$1,454.53
Portfolio metrics
Portfolio Yield:	5.51%
Portfolio Dividend Growth:	7.33%
Ann. Div Income & YOC in 10 yrs:	$32,406.44	22.22%
Ann. Div Income & YOC in 20 yrs:	$281,132.56	192.73%
Ann. Div Income & YOC in 25 yrs:	$1,282,543.72	879.25%
Ann. Div Income & YOC in 30 yrs:	$8,919,799.24	6,115.01%
Portfolio Alpha:	9.92%
Portfolio Weighted Beta:	0.48
CAGR:	487.19%
AROC:	12.06%
TROC:	9.35%
Our 2022 Goal
2022 Dividend Goal:	$4,800.00	30.30%	In Progress
2022 Portfolio Value Goal:	$151,638.03	74.40%	In Progress
6-year Portfolio Value Goal:	$175,000.00	64.47%	In Progress
10-year Portfolio Value Goal:	$1,000,000.00	11.28%	In Progress

Dividend Investing and Trading Report

Last week we have received $124.05 in dividends bringing March’s dividend income to $393.74.

Last week, we have not purchased any dividend stock.

We have closed our position in CMDY and COP as oil is going down (and after the UD administration announced that the US would dump oil to the market from strategic reserves to lower the cost for the consumers, oil tanked hard. So I had good timing (but do not worry, it was pure luck). So we made small money in those positions.

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 SPXL @ $125.18

Options Investing and Trading Report

Last week we rolled our strangle trades to keep our account safe.

These adjustments delivered income of $952.00 lowering our March total loss to -$1,662.00.

We were actively trading our SPX strategy that delivered $565.00 gain.

Expected Future Dividend Income

We have received $124.05 in dividends last week. Our portfolio currently yields 5.51% at $112,825.63 market value.

Our projected annual dividend income in 10 years is $32,406.44 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 $5,676.40 annual dividend income ($473.03 monthly income). We are 17.52% of our 10 year goal of $32,406.44 dividend income.

Market value of our holdings

Our non-adjusted stock holdings market value increased from $152,482.70 to $154,449.47 last week.

Investing and trading ROI

Our options trading delivered a -1.47% monthly ROI in March 2022, totaling a 15.30% 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 up +7.82%.

Our options trading averaged $4,316.75 per month this year. If this trend continues, we are on track to make $51,801.00 trading options in 2022. As of today, we have made $17,267.00 trading options.

Old SPX trades repair

Last week we have adjusted one of our old trades rolling it more into the future. Now we have to trade. Now we will be waiting.

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 pulled back off of the recent rally which was something I expected to happen. The rally was very strong and there were no pullbacks. It was due to get one. Based on historical data and past market behavior I expect the rally to resume.

The stock market provided a few rare bullish signals despite all the yield curve, inflation, and recession fear out there. You have to remember that the markets do not produce signals on their own, those signals were generated by the investors and traders. That indicates, that despite all the fear-mongering from the talking heads and investors on social media, these market participants ignored the fear and behaved in such a manner that the market triggered bullish signals. All the information about the yield curve, inflation, war in Ukraine, and looming recession is well-known information. It has been known for weeks and months now. Today’s investors know all these risks. If these same investors were scared and afraid of the yield curve, inflation, recession, and war, they wouldn’t be buying.