Posted by Martin March 19, 2022
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2022 SPX put credit spreads trading review – week 11

The stock market staged a three days rally when SPX reached 200-day MA at $4,468 level. Is this a reversal or just a violent relief bounce rally before we reverse down again? I think, what we are seeing is a reversal. The FED finally raised the interest rates (and if you are subscribed to my newsletter, I was saying for a while that this can be a strong bullish event), so this fear is behind us. Now we only face a fear of the war in Ukraine but that is also becoming old news and investor will start ignoring it soon. So, this can be a trend reversal.

Unfortunately, I opened a trade that ended up a costly mistake. I had to roll the trade on Friday and take a loss on it without having a chance to offset it. I guess I will have a chance to offset the costs later and hopefully next week.

Last week,the SPX PCS strategy finished down by -17.50% while SPX was up 6.16%. Our overall SPX account is up +90.47% since the beginning of this program. However, we still have -$3,055 in unrealized losses. At some point we will have to work hard 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	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

In the past few weeks, we opened a few call spreads to offset the losses on the put rolls. Now, with this strong 6% rally, these calls are hurting us. In order to make money, we need steady growth, not the crazy moves we witnessed recently. But, it will stabilize.

Overall, the strategy resulted in a -$1,455.00 loss last week. Note that the gain might be unrealized as some or all trades may be still open.

Initial account value (since inception: 12/07/2021):	$3,600.00
Last week beginning value:	$8,311.95
Last week ending value:	$6,856.95 (-17.50%; total: +90.47%)
The highest capital requirements to trade this strategy:	$19,160
Unrealized Gain:	-$3,055 (-18.54%)
Realized Gain:	$6,197 (+37.60%)
Total Gain:	$3,142 (+19.07%)

SPX PCS account value

Our SPX net-liq dropped last week. If the market is back to normal (hope) then I expect this to be a temporary loss and the account will grow again.

SPX PCS account vs SPX index net liq

However, comparing the account with SPX net-liq, we are still outperforming this horrible market.

SPX PCS account vs SPX index

We need to wait for the next week to see if the bottom has happened or more pain is coming. If this horrible market is at the end and a new rally is coming, our strategy will perform great. Our trading signals are all positive (strong positive) so unless we see some catastrophic decline next week, we should perform great from now on.

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 March 12, 2022
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2022 Week 10 investing and trading report

Last week was horrible in the market and it affected our trading negatively. We had to roll many trades for debit to stay safe and it had a negative impact on our options trading. However, we added stocks to our portfolio despite the terrible market performance as I believe, the market is near the bottom and it is time to start slowly adding shares of beaten-down stocks.

Last week we lost -$936.00 trading options, our second week of losing premiums, and our net-liq dropped down significantly by -$6,785.92 or -7.54% from last week. That is a painful drawdown. But that is the nature of trading naked options. Despite the bleak performance, I am optimistic. The losses are on paper only and created by terribly high implied volatility. I hold over $54k in cash (currently blocked by the trades but as the volatility drops, this cash will be released). Here is just a small example of high volatility in stocks in our portfolio. This volatility beats down our stock holdings positions as well as options trades:

Implied volatility

And these are just small examples of stocks that display the implied volatility in the high 60s, 70s, 80s, and some even 90s. This has a huge impact on our net-liquidation value.

Here is our investing and trading report:

Account Value:	$89,978.71	-$6,785.92	-7.54%
Options trading results
Options Premiums Received:	-$936.00
01 January 2022 Options:	$8,885.00	+8.36%
02 February 2022 Options:	$10,009.00	+10.34%
03 March 2022 Options:	-$1,972.00	-2.19%
Options Premiums YTD:	$16,922.00	+18.81%
Dividend income results
Dividends Received:	$27.26
01 January 2022 Dividends:	$303.38
02 February 2022 Dividends:	$732.81
03 March 2022 Dividends:	$202.88
Dividends YTD:	$1,239.07
Portfolio metrics
Portfolio Yield:	5.73%
Portfolio Dividend Growth:	7.33%
Ann. Div Income & YOC in 10 yrs:	$33,966.66	23.67%
Ann. Div Income & YOC in 20 yrs:	$310,344.80	216.22%
Ann. Div Income & YOC in 25 yrs:	$1,473,308.75	1,026.48%
Ann. Div Income & YOC in 30 yrs:	$10,793,587.22	7,520.11%
Portfolio Alpha:	13.38%
Portfolio Weighted Beta:	0.49
CAGR:	462.85%
AROC:	13.84%
TROC:	13.08%
Our 2022 Goal
2022 Dividend Goal:	$4,800.00	25.81%	In Progress
2022 Portfolio Value Goal:	$151,638.03	59.34%	In Progress
6-year Portfolio Value Goal:	$175,000.00	51.42%	In Progress
10-year Portfolio Value Goal:	$1,000,000.00	9.00%	In Progress

Dividend Investing and Trading Report

Last week we have received $27.26 in dividends bringing March’s dividend income to $202.88.

Last week, we bought these dividend growth stocks:

– 20 shares of CSQ @ $16.01

Here you can see our dividend income per stock holding:

Growth stocks Investing and Trading Report

Last week we bought the following growth stocks and funds:

5 shares of SNOW @ $194.69
25 shares of SPXL @ $98.62

We are adding shares of SPXL to boost our potential growth once the market reverses (I do not believe we will be in any extensively prolonged bear market, and even if we will, I still will be adding shares of this leveraged ETF to capture as much potential future upside as possible). When I started adding SPXL to my portfolio, the ETF was trading at $130 a share. Today, I added shares at $98 a share. Returning back to $130 a share in the future gives me a 33% upside potential. And on top of it, once I reach 100 shares, I will start selling covered calls against this position.

Options Investing and Trading Report

Last week we rolled our strangle trades to keep our account safe. That raised cash and buying power but the trades were mostly debit trades in lieu of credit.

These adjustments lost income of -$936.00 bringing March total to -$1,972.00.

We were actively trading our SPX strategy that delivered $730.00 weekly gain.

You can watch all our trades in this spreadsheet. You can watch the spreadsheet and look for a “NEW” indication next to the trading date. When the indicator shows up, it is typically good for up to 3 days to follow that trade.

Expected Future Dividend Income

We have received $27.26 in dividends last week. Our portfolio currently yields 5.73% at $89,978.71 market value.

Our projected annual dividend income in 10 years is $33,966.66 but that projection is if we do absolutely nothing and let our positions grow on their own without adding new positions or reinvesting the dividends.

We are also set to receive a $5,681.68 annual dividend income ($473.47 monthly income). We are 16.73% of our 10 year goal of $33,966.66 dividend income.

The chart above shows how our future dividend income is based on the future yield on cost and what dividend income we may expect in the future. The expected dividend growth depends on what stocks we are adding to our portfolio and the stocks’ 3 years average dividend growth rate. It is interesting to see what passive income we may enjoy 10, 20, 25, or 30 years from now.

Market value of our holdings

Our non-adjusted stock holdings market value decreased from $138,871.30 to $138,190.73 last week.

In 2022 we plan on accumulating dividend stocks, monetizing these positions, HFEA strategy, and SPX trading. We plan on raising more of our holdings to 100 shares so we can start selling covered calls. We continued rebalancing our options trades that released buying power significantly. That allowed us to start buying shares of our interest again.

Our goal is to accumulate 100 shares of dividend growth stocks we liked and then start selling covered calls or strangles around those positions. We also planed on reinvesting all dividends back to those holdings.

Investing and trading ROI

Our options trading delivered a -2.19% monthly ROI in March 2022, totaling a 18.81% ROI YTD. We hope that in 2022 we exceed our 45% annual revenue selling options against dividend stocks target, although as of today, we are getting behind this goal.

Our entire account is down -14.01%.

Our options trading averaged $5,640.67 per month this year. If this trend continues, we are on track to make $67,688.00 trading options in 2022. As of today, we have made $16,922.00 trading options.

Old SPX trades repair

This week, we have not adjusted any of the old trades. We adjusted a trade a week ago and it appears to be playout out well. I hope, it will end in our favor and we will be able to get rid of that trade.

We however traded our SPX put credit spread strategy which you will be able to review in my next report. The SPX strategy held well so far, and our signals kept us away from opening new trades.

Market Outlook

The stock market is still rattled by the war in Ukraine and inflation. None will have a long-term impact. It will pass one day and all these people who were selling last week will be chasing the stocks buying back into their positions. We had support at $4,240 that was breached early last week. Then a strong rally brought us back above that support but on Thursday and Friday the market lost it again and we closed below.

From a technical perspective, the chart is still broken and shows no signs of improvement. I expect more selling next week unless we get some good news to rally upon. One upside catalyst may be FED raising the rates that could calm the markets or positive development in Ukraine. That is the biggest bogus influence on the market in my opinion. I do not support the war, and it is horrible what Putin is doing and he must be stopped, but the market’s reaction on the potential impact of Russian sanctions is overblown. I will explain this more in our newsletter.

If you want to learn more about the stock market, events that moved the market last week and will likely impact it in the near future, I recommend you to subscribe to our weekly newsletter. Knowing where the market is heading and knowing when you should expect its reversal can benefit your trading and investing. Subscribe and you get one month free.

Investing and trading report in charts

Account Net-Liq

Account Stocks holding

Last week, S&P 500 grew 47.25% since we opened our portfolio while our portfolio grew 10.15%. On YTD basis, the S&P 500 fell -17.51% and our portfolio -19.62%. We are underperforming the market.

The numbers above apply to our stock holdings only. Our overall account net-liq is up by -14.01% this year thanks to our options strategies that generated enough income to stay up a bit.

Stock holdings Growth YTD

Our stock holdings are starting to outperform the market. Hopefully, this trend will stay and we will be doing better than S&P 500 constantly.

Our 10-year goal is to grow this account to $1,000,000.00 value in ten years. We are in year two and we accomplished 9.00% of that goal.

Our 6-year goal is to reach $175,000 account value to be eligible for portfolio margin (PM) and today we accomplished 51.42% of that goal.

Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 59.34% of this goal.

Investing and Trading Report – Options Monthly Income

Investing and Trading Report – Options Annual Income

Our dividend goal and future dividends

We planned to make $4,800.00 in dividend income in 2022. As of today, we received $1,239.07. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $5,681.68 a year.

Our account cumulative return

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

Here is the cumulative return for the year 2022:

Our win ratio overall:

Our win ratio for 2022:

As of today, our account overall cumulative return is 1.03% (note, data in this section are since March 13, 2021, only as that is the date we started tracking these metrics. Thus the results are skewed a bit and will show full picture next year.) and our 2022 cumulative return is -31.57%.

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 March 12, 2022
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2022 SPX put credit spreads trading review – week 10

Despite horrible market performance last week, our SPX trading did well. Although I wouldn’t trumpet a victory here yet as we have plenty of underwater trades that we are managing (pretty much just pushing them away until the market improves), these trades can give us a hard time and increase losses. For now, we just roll the trade away and provide an offsetting call spread, but at some point in the future, we will have to start unwinding the calls and start adding puts to offset the bad trades. That will require a lot of capital. So, as of today, we are in a cash preservation mode and just rolling or adjusting the trades or letting them expire.

Last week,the SPX PCS strategy finished up by 9.63% while SPX was down -2.88%. Our overall SPX account is up +130.89% since the beginning of this program. However, we still have -$490 in unrealized losses. At some point we will have to work hard to offset those losses.

Initial trade set ups

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

As I mentioned above, we were just managing our open trades by adding calls to the puts (converting the trades into Iron Condors) or rolling the trades around. Most of the time our effort was successful.

Here are our delayed open trades:

SPX PCS delayed trades

The trades are two weeks delayed. If you want to see the most recent trades or receive alerts, subscribe to our SPX alerts.

Overall, the strategy resulted in a $730.00 gain last week. Note that the gain might be unrealized as some or all trades may be still open.

Initial account value (since inception: 12/07/2021):	$3,600.00
Last week beginning value:	$7,581.95
Last week ending value:	$8,311.95 (+9.63%; total: +130.89%)
The highest capital requirements to trade this strategy:	$19,160
Unrealized Gain:	-$490 (-2.74%)
Realized Gain:	$5,067 (+28.28%)
Total Gain:	$4,577 (+25.55%)

SPX PCS account value

Our SPX net-liq increased a bit last week. I consider it a good result since the market is volatile and non-trending, well, it is trending but the trend is choppy and weak.

SPX PCS account vs SPX index net liq

However, comparing the account with SPX net-liq, we are still outperforming this horrible market.

SPX PCS account vs SPX index

I believe, the end of this messy market is near. We still may see more pain coming in the short term, but we are near the bottom. When the market reverses and the bulls return back, I can see this strategy to be even more profitable.

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.

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Posted by Martin March 05, 2022
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2022 Week 09 investing and trading report

Another choppy week for our trading and investing. It is becoming frustrating to see the markets going up one day and down the very next day. Our cash was rising the entire week but our options trades became so expensive to maintain that the entire cash pile is covering the trades now. Yet our net-liq dropped significantly this week.

Here is our investing and trading report:

Account Value:	$96,764.63	-$4,883.93	-5.05%
Options trading results
Options Premiums Received:	-$1,036.00
01 January 2022 Options:	$8,885.00	+8.36%
02 February 2022 Options:	$10,009.00	+10.34%
03 March 2022 Options:	-$1,036.00	-1.07%
Options Premiums YTD:	$18,751.00	+18.45%
Dividend income results
Dividends Received:	$175.62
01 January 2022 Dividends:	$303.38
02 February 2022 Dividends:	$732.81
03 March 2022 Dividends:	$175.62
Dividends YTD:	$1,211.81
Portfolio metrics
Portfolio Yield:	5.70%
Portfolio Dividend Growth:	7.33%
Ann. Div Income & YOC in 10 yrs:	$32,731.40	23.50%
Ann. Div Income & YOC in 20 yrs:	$297,372.94	213.54%
Ann. Div Income & YOC in 25 yrs:	$1,405,619.57	1,009.36%
Ann. Div Income & YOC in 30 yrs:	$10,239,582.15	7,352.95%
Portfolio Alpha:	12.94%
Portfolio Weighted Beta:	0.50
CAGR:	483.62%
AROC:	14.16%
TROC:	12.54%
Our 2022 Goal
2022 Dividend Goal:	$4,800.00	25.25%	In Progress
2022 Portfolio Value Goal:	$151,638.03	63.81%	In Progress
6-year Portfolio Value Goal:	$175,000.00	55.29%	In Progress
10-year Portfolio Value Goal:	$1,000,000.00	9.68%	In Progress

Dividend Investing and Trading Report

Last week we have received $175.62 in dividends bringing March’s dividend income to $175.62.

Last week, we didn’t buy any dividend growth stocks:

Here you can see our dividend income per stock holding:

Growth stocks Investing and Trading Report

Last week we bought the following growth stocks and funds:

5 shares of SNOW @ $222.08

Options Investing and Trading Report

Last week we rolled our strangle trades to keep our account safe. That raised cash and buying power but the trades were mostly debit trades in lieu of credit.

These adjustments lost income of -$1,036.00 bringing March total to -$1,036.00.

We were actively trading our SPX strategy that delivered $430.00 weekly gain.

Expected Future Dividend Income

We have received no dividends last week. Our portfolio currently yields 5.70% at $96,764.63 market value.

Our projected annual dividend income in 10 years is $32,731.40 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 $5,650.56 annual dividend income ($470.88 monthly income). We are 17.26% of our 10 year goal of $32,731.40 dividend income.

Market value of our holdings

Our non-adjusted stock holdings market value decreased from $154,563.70 to $138,871.30 last week.

Investing and trading ROI

Our options trading delivered a -1.07% monthly ROI in March 2022, totaling a 18.46% ROI YTD. We hope that in 2022 we exceed our 45% annual revenue selling options against dividend stocks target!

Our entire account is down -7.53%.

Our options trading averaged $5,952.67 per month this year. If this trend continues, we are on track to make $71,432.00 trading options in 2022. As of today, we have made $17,858.00 trading options.

Old SPX trades repair

We however traded our SPX put credit spread strategy which you will be able to review in my next report. The SPX strategy held well so far, and our signals kept us away from opening new trades.

Market Outlook

The stock market is range-bound in a short sideways range. It however held above the $4,240 support. Unfortunately, it is still in a bearish downward sloping trend and as of today, there is no sign of improvement. The SPX is short-term bearish and I expect more selling to come.

The outlook is unchanged from the previous view. The SPX has a long way to go to improve the chart. We need to see a breakout above the trend and above 200-day MA to be bullish again.