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Posted by Martin May 20, 2022
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2022 SPX put credit spreads trading review – week 20


I expected 2022 year to be slow and not as profitable trading as 2021 but what is happening this year is outstanding. Nevertheless, our SPX trading is doing well so far although it is very difficult trading. I am adjusting trades to get busted again. This is one of the reasons why as an investor and trader you must have enough capital to trade. You must be able to sustain markets like this one. With insufficient capital, you will be doomed to start closing your trades and pile up losses. I still have capital available but I am running low already and have to modify my trading approach.

First, I will not be opening new trades except those that are adjusting the old bad trades. Before, I suspended aggressive bullish trades and traded Friday trades only. Now I will not be opening these trades either.

The only approach I am taking now is converting busted trades to a structure that is called a “box” and eventually adding call spreads. When the addition delivers a credit, I use the credit to finance adjustments of other trades to keep the account floating.

So far, this strategy works and we could deliver $185 income this week. That brought our account up by +1.84% while SPX lost -3.05%.

Overall, the SPX account is up +184.78% since the beginning of this program, and we have $7,660 in unrealized gains.

 

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:

 
SPX PCS account value
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 +$185.00 gain last week.
 

Initial account value (since inception: 12/07/2021): $3,600.00
Last week beginning value: $10,066.95
Last week ending value: $10,251.95 (+1.84%; total: +184.78%)
The highest capital requirements to trade this strategy: $19,190
Current capital at risk: $18,130
Unrealized Gain: $7,660 (+42.25%)
Realized Gain: $1,202 (+6.63%)
Total Gain: $8,862 (+48.88%)
Win Ratio: 65%
Average Winner: $252
Average Loser: $437

 

SPX PCS account value
SPX PCS account value
 
Our SPX net-liq decreased slightly last week. The market is volatile and selling too much and because of that, I am reducing our trading activity to just adjusting our existing trades.
 

SPX PCS account vs SPX
SPX PCS account vs SPX index net liq
 
Our account is slowly growing while the entire market is struggling. I am looking forward to this selling to end and the market resuming its bullish uptrend. We will be able to get into the more aggressive trades and boost our income significantly.

 

SPX PCS account vs SPX
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:

 

 

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 May 14, 2022
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2022 Week 19 investing and trading report


Last week the trading became even worse. Due to volatility in the markets, my margin shrunk to zero… That means I am pretty much in a full cash account unable to trade anything because I have no buying power. I have over $60,000 in cash but that is all locked by margin maintenance requirements. All I could do is to manage old trades and roll them to keep them safe – relatively. And rolling them is becoming costly. Most of them are no longer credit trades.

Trading options was debit trades for most of the time and we lost $3,390 rolling those trades.

Our Net-liq also dropped significantly by -3.92% last week and overall account is down -17.40% 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 but that gain is starting to shrink. And I sold no stock positions. I was buying stocks during this market selloff.

 

Here is our investing and trading report:

 

Account Value: $86,439.52 -$3,387.16 -3.92%
Options trading results
Options Premiums Received: -$3,390.00    
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: -$5,221.00 -6.04%  
Options Premiums YTD: $13,058.00 +15.11%  
Dividend income results
Dividends Received: $14.84    
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: $26.48    
Dividends YTD: $1,793.72    
Portfolio metrics
Portfolio Yield: 5.84%    
Portfolio Dividend Growth: 11.67%    
Ann. Div Income & YOC in 10 yrs: $64,937.33 43.02%  
Ann. Div Income & YOC in 20 yrs: $2,710,424.20 1,795.65%  
Ann. Div Income & YOC in 25 yrs: $60,507,318.08 40,086.06%  
Ann. Div Income & YOC in 30 yrs: $4,887,996,129.40 3,238,294.01%  
Portfolio Alpha: 9.04%    
Sharpe Ratio: 4.23 EXCELLENT  
Portfolio Weighted Beta: 0.56    
CAGR: 404.87%    
AROC: 11.26%    
TROC: 11.34%    
Our 2022 Goal
2022 Dividend Goal: $4,800.00 37.37% In Progress
2022 Portfolio Value Goal: $151,638.03 57.00% In Progress
6-year Portfolio Value Goal: $175,000.00 49.39% In Progress
10-year Portfolio Value Goal: $1,000,000.00 8.64% In Progress

 

Dividend Investing and Trading Report

 
Last week we have received $14.84 in dividends bringing our May’s dividend income at $26.48.

Last week, we have not purchased any dividend stock.

 

 

I wish I could buy more stocks but my buying power is so depressed that I have to wait for my broker to start releasing the margin and my cash. It should start happening shortly.

Here you can see our dividend income per stock holding:

 
Annual Dividend Payout week 19

 

Growth stocks Investing and Trading Report

 

Last week, we have not purchased any growth stocks.

 

 

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 -$3,390.00 making our May options income -$5,221.00.

 

We were actively trading our SPX strategy that delivered -$85.00 loss.

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 $14.84 in dividends last week. Our portfolio currently yields 5.84% at $86,439.52 market value.

 
Our projected annual dividend income in 10 years is $64,937.33 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 $5,849.98 annual dividend income ($487.50 monthly income). We are 9.01% of our 10 year goal of $64,937.33 dividend income.

 
Future Divi on YOC week 19
 

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 $142,021.49 to $135,128.05 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 trading week 19
 

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 -6.04% monthly ROI in May 2022, totaling a 15.11% 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 way behind this goal.

Our entire account is down -17.40%.
 

Our options trading averaged $2,611.60 per month this year. If this trend continues, we are on track to make $31,339.20 trading options in 2022. As of today, we have made $13,058.00 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

 

TW Account trading Net-Liq week 19

 

Account Stocks holding

 
TW Account holdings week 19
 

Last week, S&P 500 grew 39.10% since we opened our portfolio while our portfolio grew 4.23%. On YTD basis, the S&P 500 fell -25.66% and our portfolio -25.55%. 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 -17.40% 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 8.64% 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 49.39% of that goal.
 

Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 57.00% of this goal.

 

Investing and Trading Report – Options Monthly Income

 
TW Options Trading Income week 19
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Trading Income week 19
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 19
 

We planned to make $4,800.00 in dividend income in 2022. As of today, we received $1,793.72. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $5,849.98 a year.
 

<a href=”https://hellosuckers.net/wp-content/uploads/2022/05/2022-TW-received-future-dividends-wk-19.png rel=”noopener noreferrer” target=”_blank”>TW Received vs Future Dividends week 19

 

Our account cumulative return

 

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

TW cumulative (overall) trading return wk 19
 

Here is the cumulative return for the year 2022:
 

TW cumulative (2022) trading return wk 19
 

Our win ratio overall:
 

TW trading win ratio (overall) wk 19
 

Our win ratio for 2022:
 

TW trading win ratio (2022) wk 19
 

As of today, our account overall cumulative return is -22.42% (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 -47.45%. 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 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 May 13, 2022
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2022 SPX put credit spreads trading review – week 19


This selling is becoming frustrating. Our SPX trading strategy held relatively well, mostly because I didn’t trade much. All I did was sit tight and manage trades that needed adjustment. I only opened Friday trade and used the collected credit to help offset another trade that needed adjustment. Next week, I will be doing the same.

Our overall SPX account is up +179.64% since the beginning of this program, and we have $475 in unrealized losses. At some point in the near future, we will have to offset those losses.

 

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:

 
SPX PCS account value
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 -$85.00 loss last week.
 

Initial account value (since inception: 12/07/2021): $3,600.00
Last week beginning value: $10,151.95
Last week ending value: $10,066.95 (-0.84%; total: +179.64%)
The highest capital requirements to trade this strategy: $19,190
Current capital at risk: $17,475
Unrealized Gain: -$475 (-2.72%)
Realized Gain: $6,807 (+38.95%)
Total Gain: $6,332 (+36.23%)
Win Ratio: 68%
Average Winner: $243
Average Loser: $322

 

SPX PCS account value
SPX PCS account value
 
Our SPX net-liq decreased slightly last week. The market is volatile and selling too much and because of that, I am reducing our trading activity to just 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
SPX PCS account vs SPX index net liq
 
Our account is slowly growing while the entire market is struggling. I am looking forward to this selling to end and the market resuming its bullish uptrend. We will be able to get into the more aggressive trades and boost our income significantly.

 

SPX PCS account vs SPX
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:

 

 

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 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:

 
Annual Dividend Payout week 18

 

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.

 
Future Divi on YOC week 18
 

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.

 
Stock holdings trading week 18
 

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

 

TW Account trading Net-Liq week 18

 

Account Stocks holding

 
TW Account holdings week 18
 

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

 
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 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

 
TW Options Trading Income week 18
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Trading Income week 18
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 18
 

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.
 

TW Received vs Future Dividends week 18

 

Our account cumulative return

 

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

TW cumulative (overall) trading return wk 18
 

Here is the cumulative return for the year 2022:
 

TW cumulative (2022) trading return wk 18
 

Our win ratio overall:
 

TW trading win ratio (overall) wk 18
 

Our win ratio for 2022:
 

TW trading win ratio (2022) wk 18
 

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 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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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:

 
SPX PCS account value
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
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
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
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:

 

 

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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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:

 
Annual Dividend Payout week 17

 

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.

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 $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.

 
Future Divi on YOC week 17
 

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.

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 trading week 17
 

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 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

 

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

 

TW Account trading Net-Liq week 17

 

Account Stocks holding

 
TW Account holdings week 17
 

Last week, S&P 500 grew 42.84% since we opened our portfolio while our portfolio grew 7.88%. On YTD basis, the S&P 500 fell -21.93% and our portfolio -21.90%. 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 -15.99% 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 8.79% 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 50.23% of that goal.
 

Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 57.97% of this goal.

 

Investing and Trading Report – Options Monthly Income

 
TW Options Trading Income week 17
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Trading Income week 17
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 17
 

We planned to make $4,800.00 in dividend income in 2022. As of today, we received $1,767.24. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $5,883.34 a year.
 

TW Received vs Future Dividends week 17

 

Our account cumulative return

 

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

TW cumulative (overall) trading return wk 17
 

Here is the cumulative return for the year 2022:
 

TW cumulative (2022) trading return wk 17
 

Our win ratio overall:
 

TW trading win ratio (overall) wk 17
 

Our win ratio for 2022:
 

TW trading win ratio (2022) wk 17
 

As of today, our account overall cumulative return is -11.32% (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 -39.93%. 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 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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April 2022 $100 Challenge account review


In April 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 April 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.
 

April 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 $350.56
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 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.
 

April 2022 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  

 

$100 Challenge account review goal

 

April 2022 Challenge account Income

 

Total Invested in Stocks $385.20
Total Unrealized Profit -$43.26
Total Realized Profit -$1.17
Strangles Income -$1,316.00
Dividends Income $19.02
Deposits Total $1200.00
Cash $8.62
Net-Liq $350.56

 

Cumulative return Challenge account review

 

As of today, our challenge account provided a -80.94% 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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HFEA April 2022 strategy report


Our HFEA strategy got a severe beating in April as there was nowhere to hide. Stocks got beaten down as well as bonds. A TMF position that was supposed to protect the account got sold off terribly and we hold larger losses in TMF than in the SPXL.

The only unit that held a bit up was an inverse bond ETF TBT but, unfortunately, we do not have a very large position in it, so the protection is insignificant.

So what is next? I reconsidered the HFEA strategy and decided to abandon the TMF position at some point in the future. As of now, I hold some options against TMF but as soon as I will be able to close them (now it would be for a loss), I will re-allocate TMF funds into SPXL and let SPXL run only. As of today, I am investing heavily in SPXL adding more shares, and waiting for the market to finally end its craziness over nothing (yes, I do not consider the fears that our there significant enough to cause the selling that will be forgotten next quarter or next year… I do not care when, but it will be forgotten). And when that happens, I expect the SPXL position to outperform the market significantly. I am also selling covered calls against SPXL (TMF, and TBT).

Originally, I dedicated $15,000 to this strategy. That represented approx. 15% of our portfolio. If the strategy underperforms and is below this amount, I will add cash to it. If it outperforms and ends above this threshold, I will trim the position and save the cash aside. We will be rebalancing quarterly and our next rebalancing will occur at the end of June 2022.

The HFEA strategy is about investing in leveraged ETF but adding protection to the downside since the leverage works both ways. I like the idea because drawdowns can be significant.
 

Initial HFEA allocation

 
Start date: 11/27/21
Approach: Variable allocation* – 75%/25% SPXL/TMF
Rebalancing frequency: Quarterly*
Return (total / YTD): -44.95%/-44.95%
Initial contribution: 15% of portfolio Net-Liq (~ $15k)
 

* Variable allocation will be adjusted based on the moving averages and VIX term structure. When moving averages turn negative (downside) and VIX turns into backwardation, the SPXL allocation will be decreased and TMF allocation increased.

 

Current HFEA allocation

 
Goal Approach: 75% SPXL, 25% TMF
Current Approach: 64% SPXL, 36% TMF
 

MONTH NET-LIQ PROFIT/
LOSS
PROFIT/
LOSS %%
November 2021 $13,441.91 $0.00 0.00%
December 2021 $14,773.72 $1,331.81 9.91%
January 2022 $12,597.96 -$2,175.76 -14.73%
February 2022 $11,665.69 -$932.27 -7.40%
March 2022 $12,483.01 $817.32 7.01%
April 2022 $8,694.65 -$3,788.36 -30.35%

 

Our HFEA strategy lost -30.35% in April 2022 while the entire market lost -9.03%.
 

HFEA charts

 
HFEA net-liq 03
Strategy Net liquidation value
 

HFEA vs SPY net-liq 03
Strategy vs SPY Net liquidation value
 

HFEA vs SPY
Strategy performance vs. SPY
 

April turned out to be the worst month ever for this strategy as both the SPXL and TMF funds declined significantly. However, I am going to slowly re-allocate funds into SPXL in preparation for the next market rally. When it comes, I expect this strategy to outperform the market significantly.
 
 




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2022 SPX put credit spreads trading review – week 17


Our SPX PCS strategy finished up by 1.71% while SPX lost -3.27%. Last week was a horrible week. As pundits and media say, it was the worst week since 2008. There seems to be no end to selling pressure. Our account performed well but I do not feel happy about it because it was very stressful trading. I opened two new trades but other than that I was mostly in a defense mode protecting and rolling the trades.

Our overall SPX account is up +180.61% since the beginning of this program, and we have -$105 in unrealized losses.
 

If the market stays sideways in this wide sideways range, I will be trading Friday’s trades only. If we break below the critical support, I might be trading call side or skip trading at all until the market calms down.
 

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

 

Last week trading

 

Overall, the strategy resulted in a $170.00 gain last week.
 

Initial account value (since inception: 12/07/2021): $3,600.00
Last week beginning value: $9,931.95
Last week ending value: $10,101.95 (+1.71%; total: +180.61%)
The highest capital requirements to trade this strategy: $19,190
Current capital at risk: $18,105
Unrealized Gain: -$105 (-0.58%)
Realized Gain: $6,492 (+35.86%)
Total Gain: $6,387 (+35.28%)
Win Ratio: 69%
Average Winner: $213
Average Loser: $259

 

SPX PCS account value
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
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
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:

 

 

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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2022 Week 16 investing and trading report


Once again I was surprised with our options trading results this week. I expected a positive return but only around $1,000 dollars. So receiving $3,108 in options premiums was a nice surprise that offset the horrible account balance results. Our net-liq dropped significantly again and we pretty much erased all last year’s gains. But the loss is temporary! We have not sold any equity for a loss and we are seeing losses in options due to rolling the options. When you roll the option, you close the old trade (typically for a loss) and open a new trade that offsets the loss. The loss is a realized one, the new credit is unrealized. Once the market stabilizes and we start seeing our options trades expiring, the net-liq will skyrocket. We just have to wait out this terrible market and keep rolling.

 

Here is our investing and trading report:

 

Account Value: $98,050.47 -$4,395.61 -4.48%
Options trading results
Options Premiums Received: $3,108.00    
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: $3,870.00 +3.95%  
Options Premiums YTD: $21,102.00 +21.52%  
Dividend income results
Dividends Received: $50.22    
01 January 2022 Dividends: $303.38    
02 February 2022 Dividends: $732.81    
03 March 2022 Dividends: $393.74    
04 April 2022 Dividends: $111.05    
Dividends YTD: $1,540.98    
Portfolio metrics
Portfolio Yield: 5.17%    
Portfolio Dividend Growth: 11.61%    
Ann. Div Income & YOC in 10 yrs: $52,906.28 34.28%  
Ann. Div Income & YOC in 20 yrs: $1,655,646.58 1,072.70%  
Ann. Div Income & YOC in 25 yrs: $28,562,517.66 18,505.77%  
Ann. Div Income & YOC in 30 yrs: $1,619,647,588.25 1,049,376.28%  
Portfolio Alpha: 16.27%    
Sharpe Ratio: 6.93 EXCELLENT  
Portfolio Weighted Beta: 0.47    
CAGR: 442.43%    
AROC: 16.45%    
TROC: 9.03%    
Our 2022 Goal
2022 Dividend Goal: $4,800.00 32.10% In Progress
2022 Portfolio Value Goal: $151,638.03 64.66% In Progress
6-year Portfolio Value Goal: $175,000.00 56.03% In Progress
10-year Portfolio Value Goal: $1,000,000.00 9.81% In Progress

 

Dividend Investing and Trading Report

 
Last week we have received $50.22 in dividends bringing our April’s dividend income at $111.05.

Last week, we have not purchased any dividend stock.

 

Here you can see our dividend income per stock holding:

 
Annual Dividend Payout week 16

 

Growth stocks Investing and Trading Report

 

Last week, we have not purchased any growth stocks.

However, I was adding the ICSH fund to increase reserves. Last year, I built nice reserves in this cash equivalent fund but then I thought that holding cash in that account is a waste of resources and I liquidated the holdings and invested it into dividend-paying stocks. That is not necessarily a bad thing but I have no cash reserves that I can tap into. The cash in the account is tied to the current margin maintenance and cannot be used. This was a lesson learned. Now that the market tanked, I struggle to keep the account buying power positive. If I had the reserves intact, I could be now selling the ICSH position to release funds instead of hastily rolling the trades around to stay afloat. So, I am slowly rebuilding those reserves to the previously determined level.

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 income of $3,108.00 making our April options income $3,870.00.

 

We were actively trading our SPX strategy that delivered $1,940.00 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 $50.22 in dividends last week. Our portfolio currently yields 5.17% at $98,050.47 market value.

 
Our projected annual dividend income in 10 years is $52,906.28 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 $5,941.07 annual dividend income ($495.09 monthly income). We are 11.23% of our 10 year goal of $52,906.28 dividend income.

 
Future Divi on YOC week 16
 

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 $156,795.57 to $148,744.46 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 trading week 16
 

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 3.95% monthly ROI in April 2022, totaling a 21.52% 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 -6.30%.
 

Our options trading averaged $5,275.50 per month this year. If this trend continues, we are on track to make $63,306.00 trading options in 2022. As of today, we have made $21,102.00 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 trades.

 

Market Outlook

 

The stock market did what we expected it would do. It bounced last week and then wasn’t able to break above the strong resistance at 200-day MA. Then Powell spoke and sent the market to the abyss. Currently, it is on the track to retest the February 24th lows which is what I think is going to happen. On Monday, we may see a flush out and then possible bounce but overall we will be reversing and heading lower.
 

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

 

TW Account trading Net-Liq week 16

 

Account Stocks holding

 
TW Account holdings week 16
 

Last week, S&P 500 grew 47.67% since we opened our portfolio while our portfolio grew 13.25%. On YTD basis, the S&P 500 fell -17.09% and our portfolio -16.53%. 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 -6.30% 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 9.81% 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 56.03% of that goal.
 

Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 64.66% of this goal.

 

Investing and Trading Report – Options Monthly Income

 
TW Options Trading Income week 16
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Trading Income week 16
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 16
 

We planned to make $4,800.00 in dividend income in 2022. As of today, we received $1,540.98. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $5,941.07 a year.
 

TW Received vs Future Dividends week 16

 

Our account cumulative return

 

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

TW cumulative (overall) trading return wk 16
 

Here is the cumulative return for the year 2022:
 

TW cumulative (2022) trading return wk 16
 

Our win ratio overall:
 

TW trading win ratio (overall) wk 16
 

Our win ratio for 2022:
 

TW trading win ratio (2022) wk 16
 

As of today, our account overall cumulative return is -1.09% (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 -33.00%. 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 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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