November is almost over and I am disappointed so far. Our net-liq dropped last week, our stock holdings were shaken down a bit (mostly by my mistake with APPL strangle that I forgot to roll), our options income was low so far. The only item that was in line with plans was dividends. This investing and trading report will be a hard one to write, admitting that it wasn’t a good week and a good month. But, all previous months were great, and I think, I don’t have to push it further. I made $50,000 in options income this year. Most I have ever made in my life.

Here is our investing and trading report:

Dividend Investing and Trading Report

 
Last week we have received a good portion of dividends. That was the only bright side in November investing and trading. All other metrics dropped but dividends. Our dividend income is still well in line with our goals and plans. We planned on receiving $472.82 in dividends in November and so far we have received $349.82 income. Last week, we received $230.93 in dividends that helped our overall November’s dividend income.

Here you can see our dividend income per stock holding:

Options Investing and Trading Report

 
We generated $469.00 options income last week. It is horribly slow and I am disappointed with this income. I hoped I would be able to make more. But we had expiration Friday last week and 10 trades expired worthless and one trade got assigned. Our Apple (APPL) call got in the money by 55 cents and I didn’t pay attention to it. I thought it would expire worthless so I turned off the computer and went away. The stock rallied hard on the EV bubble and got in the money.

We owned 41 shares and these were sold. We are now short 59 shares that we will buy back on Monday and buy back our 41 shares holdings (we may buy more shares though).

Last week we only rolled trades to release the BP and re-center strikes to the market price. We opened another Tesla short-term put spread and collected premium.

Since we had expiration Friday last week, I expect re-opening trades next week that may boost our options income for November. I hope that will bring our income back to levels I would like to see.
 

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 received $230.93 in dividends last week. It is still a very small income and I wish it could be larger than that but our stock holdings are still relatively small and “young” to show the full strength of the dividend investing. Our portfolio currently yields 4.51% at $94,185.00 market value. I think this is not a bad result.

 
Our projected annual dividend income in 10 years is $17,554.15 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 $4,492.88 annual dividend income. We are 25.59% of our 10 year goal of $17,554.15 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 $128,089.83 to $109,599.80 last week. This is the biggest disappointment to me, although the drop was caused by Apple assignment and Tesla repositioning. It is a temporary drop. We have not lost money, but increased cash. But it looks bad on paper.

Next week, as we will be buying back shares and buying more, I expect these numbers to return back to their previous levels.

As you can see in the chart above, our APPL holding is now negative due to the assignment. It will be corrected next week. After that, I will be able to see the overall trade result. We collected 1.83 in premiums and if we close the trade at the current Apple price, we will lose 0.55 only. The strangle will still be profitable (excluding profits from the shares).

Our goal is to accumulate 100 shares of each stock of our interest and we are getting to that goal.
 

Investing and trading ROI

Our options trading delivered a 1.97% monthly ROI in November 2021, totaling a 53.76% ROI YTD. We again exceeded our 45% annual revenue selling options against dividend stocks target!

Our account grew by 357.82% beating our projections and the market.
 

Our options trading averaged $4,603.18 per month this year. If this trend continues, we are on track to make $55,238.18 trading options in 2021. As of today, we have made $50,635.00 trading options.
 

Old SPX trades repair

This week, we didn’t adjust any SPX trades. Our goal is to reach a level that we will be eligible for portfolio margin (PM). Once that happens, we plan on converting the existing SPX Iron Condors to strangles and trade these positions as strangles.

With RegT margin, the capital requirements would be approx. $66,586.06 and that is beyond our means. With PM the requirement for margin would drop to around $10k. That is doable in our account. Once we reach this level, we will start adjusting our SPX trades accordingly. Until then, we will just roll these trades around.

Accumulating Growth Stocks

Last week we added Tesla back to our holdings. We also added a few more shares of RIVN although I was not sure if that was a good move. RIVN is a very speculative trade to me. I hope the stock will be driven by other investors’ greed, being worried that they were late on Tesla, and now jumping into RIVN, and moving the stock higher. So pure speculation on others FOMO. And the only reason for believing in this plan is that Amazon and Ford have stakes in this company. If it wasn’t backed by them, I wouldn’t gamble.

We also added shares of SSO shares according to our plan.

With SPXL and SSO, our goal for the nearest future is to accumulate 25% of our net-liq in SSO and SPXL and maintain the weight. If the weight goes above 25% we will start trimming the positions, and when the weight goes below 25% we will start accumulating the positions. Any leftovers will be reinvested to the dividend growth stocks, options trades, or reserves.

Currently, we hold 13.28% in SSO and SPXL shares, so getting close to our goal of accumulating these positions. My plan is that when fully accumulated, our portfolio will go up faster than the market (and down faster too, but downtrends are shorter and always recover at some point) and that will help us outperform the market two to three times over the long haul. During the bear markets, we will be accumulating to hold our 25% level, during the bull markets we will be trimming our position and saving the cash for the bear markets.

Accumulating Rules

Our rule is to buy shares of growth stocks using 20% of any BP value that is above the $4,000 November limit. For example, if our BP ends at $4,900, we can buy shares using 20% of $900 or $180 to accumulate shares of any growth stocks. Once we reach the $10,000 limit we will start scaling up our options trades again. In December 2021, we plan on increasing the limit to the $5,000 level.

Why such a rule? Up to today, I was scaling up my trades and portfolio. That resulted in rapid growth but also all our proceeds were constantly locked in the trades. If we want to live off of our dividends and options income, we cannot have them locked by new trades. We need to start accumulating “cash available to withdraw”. Therefore, I am shifting my trading to trade the same amount of contracts and invest only a certain excess of the accumulated cash.

Another reason, of course, is to have enough cash to buy opportunities when the market crashes or corrects. As is typical, Wall Street usually overreacts (stupidly) and I want to buy shares when the market is in panic. Like in March 2020. I bought some shares but I wish, I had more free cash. I would buy more.

Accumulating Dividend Growth Stocks

Last week, we added MSFT to our holdings only.

Our goal is to reach 100 shares of high-quality dividend stocks and build a weekly dividend income as per this calendar, but we have made no changes to this goal last week:
 

 
You can see the entire spreadsheet here.

Market Outlook

The market behaved exactly as expected. With no catalyst such as earnings, we were going sideways. But most stocks were selling last week. If you are a subscriber to our newsletter, I wrote last week that the market reached the 1 SD level driven by a strong earnings season and that we will stop at that level. We could bounce down or go sideways. The market stayed elevated on upcoming holiday retail sales expectations. Seasonally, November is a very good month for stocks, the first week is usually a strong rally, then a choppy flat rest of the month. We are following this trend to the tee.

Here is what happened last week:
 

 
As you can see, the market was hugging the top 1 SD level and consolidating just below it. On Friday, it even moved above it but retreated by the end of the day.

But look at what the options market is pricing in! The expectations are that we will see a very strong rally towards the end of the year. This will be interesting to see how it plays out.

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

Investing and trading report in charts

Account Net-Liq

Account Stocks holding

Last week, S&P 500 grew 62.41% since we opened our portfolio while our portfolio grew 27.97%. On YTD basis, the S&P 500 grew 32.56% and our portfolio 20.98%.

The numbers above apply to our stock holdings only. Our overall account net-liq grew by 357.82% this year! This is thanks to options trading that generates income. It can be also seen how the options help lower our cost basis. Just compare the P&L in the regular (left) column with the P&L in the “Options adjusted” column. For example, our AES holding would be a loser as of today (down -6.24%), but we generated enough income (we can call it also a return of our invested capital) and that position is 127.25% up.
 

Stock holdings Growth YTD

I expect our stock holdings to start outperforming the market very soon. The entire portfolio beats the market by far thanks to monetizing those positions.

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 9.42% 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 53.82% of that goal.

Our 2021 year goal is to grow this account to a $42,344.00. We already accomplished this goal.

Investing and Trading Report – Options Monthly Income

Investing and Trading Report – Options Annual Income

Our dividend goal and future dividends

We have accomplished our dividend income goal. We planned to make $1,071 of dividend income this year and we finished receiving $2,471.25. However, we accumulated enough shares to start making $4,492.88 a year.
 

Our account cumulative return

The chart below indicates our cumulative adjusted return.
 

As of today, our account cumulative return is 56.41% (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.).

Conclusion of our investing and trading report

This week our options trading was within our expectations and I believe, the rest of the month will be even better.

We will continue accumulating the dividend growth stocks in our portfolio to reach 100 shares and continue building our cash reserves so we have enough cash to sustain any market corrections and be able to buy depressed stocks.

We will report our next week’s results next Saturday. Until then, good luck and good trading!

As you will be able to see in today’s investing and trading report, November is moving forward slowly. Our net-liq has added only a hundred dollars and our options income is small too. Our dividend income jumped nicely but it is still small too. We are fully invested and there is little we can do to boost our income. Next wee is an expiration week and we have 11 trades expiring. If nothing violent happens in the markets, these trades should expire and release over $13,000 of buying power. We will be reinvesting that buying power and that should boost our options income.

Here is our investing and trading report:

Dividend Investing and Trading Report

 
Last week the stock market retreated from highs as I expected. Earnings season that moved the market up is over moved and with no catalyst fear took over again. We didn’t trade any dividend stocks last week and so our dividend income is in line with the previous projections. We received $108.54 in dividends last week, bringing November to $118.89 total dividends.

Here you can see our dividend income per stock holding:

Options Investing and Trading Report

 
We generated $628.00 options income last week. It is slow so far but next week we have expiration Friday and we have 11 trades that are set for expiration. If they expire, we will be re-opening those trades the following week and that would boost our November income. We have over $13k of buying power tight up in those trades it should be released at expiration.

Last week we mostly closed or rolled trades to release the BP and re-center strikes to the market price. We opened Tesla short-term put spread and collected premium. We closed the trade for a profit on Friday since the stock was not moving in our direction so early closure was justified.
 

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 received $108.54 in dividends last week. It is still a very small income and I wish it could be larger than that but our stock holdings are still relatively small and “young” to show the full strength of the dividend investing. Our portfolio currently yields 4.10% at $95,840.36 market value. I think this is not a bad result.

 
Our projected annual dividend income in 10 years is $17,815.23 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 $4,069.72 annual dividend income. We are 22.84% of our 10 year goal of $17,815.23 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 $126,668.98 to $128,089.83 last week.

However, we still expect the value of our holdings to grow and outperform the market long term. Many positions in our portfolio are new and “young” and they did not have enough time to show gains yet. We were building cash reserves to buy depressed stocks during selloffs and corrections as well as negative analysts reports (as long as the company is still good long term).

Our goal is to accumulate 100 shares of each stock of our interest and we are getting to that goal.
 

Investing and trading ROI

Our options trading delivered a 1.44% monthly ROI in November 2021, totaling a 52.34% ROI YTD. We again exceeded our 45% annual revenue selling options against dividend stocks target!

Our account grew by 365.87% beating our projections and the market.
 

Our options trading averaged $4,560.55 per month this year. If this trend continues, we are on track to make $54,726.55 trading options in 2021. As of today, we have made $50,166.00 trading options.
 

Old SPX trades repair

This week, we didn’t adjust any SPX trades. Our goal is to reach a level that we will be eligible for portfolio margin (PM). Once that happens, we plan on converting the existing SPX Iron Condors to strangles and trade these positions as strangles.

With RegT margin, the capital requirements would be approx. $66,586.06 and that is beyond our means. With PM the requirement for margin would drop to around $10k. That is doable in our account. Once we reach this level, we will start adjusting our SPX trades accordingly. Until then, we will just roll these trades around.

Accumulating Growth Stocks

Last week we placed a stop-loss order for Tesla stock as Elon Musk announced selling 10% of his stake in the company to pay taxes. Later, bad news came from China sales and the stock tanked over 12%. Our stop loss got hit and we sold our position. I did it to protect our gains and there was a chance that the stock would go lower and could hit $900 or even $700 level. We bought in at $620 average price and if the stock moved that low, we would lose all our gains. But the stock didn’t seem to continue lower. It found strong support at $1,000 and bounced from there. So we bought back our shares at a slightly lower price and placed a new stop-loss in case this is really just a bounce before the stock reverses down again. If it does reverse down, we may repeat the process. If it doesn’t, I expect the stock to go to $1,400 – $1,500 level.

We also added shares of SPXL, SNOW, RINF, and RIVN to our holdings according to our plan and rules.

With SPXL and SSO, our goal for the nearest future is to accumulate 25% of our net-liq in SSO and SPXL and maintain the weight. If the weight goes above 25% we will start trimming the positions, and when the weight goes below 25% we will start accumulating the positions. Any leftovers will be reinvested to the dividend growth stocks, options trades, or reserves.

The RINF is an inflation expectation ETF that should gain when fear of inflation is rising. It tracks and invests in TIPS and I think that with all the hyper-inflation talks, a small exposure to the interest-adjusted bonds wouldn’t hurt. Although, when looking at the sharts, there is little to no fear of inflation by the market participants.

RIVN is a recent EV IPO and I think, with all the hype and other big players’ interest in this stock, this investment may pay off. So I also initiated a small position. I may be adding to it or just sitting on it. I may also place a stop-loss on this trade.

Accumulating Rules

Our rule is to buy shares of growth stocks using 20% of any BP value that is above the $4,000 November limit. For example, if our BP ends at $4,900, we can buy shares using 20% of $900 or $180 to accumulate shares of any growth stocks. Once we reach the $10,000 limit we will start scaling up our options trades again.

Why such a rule? Up to today, I was scaling up my trades and portfolio. That resulted in rapid growth but also all our proceeds were constantly locked in the trades. If we want to live off of our dividends and options income, we cannot have them locked by new trades. We need to start accumulating “cash available to withdraw”. Therefore, I am shifting my trading to trade the same amount of contracts and invest only a certain excess of the accumulated cash.

Another reason, of course, is to have enough cash to buy opportunities when the market crashes or corrects. As is typical, Wall Street usually overreacts (stupidly) and I want to buy shares when the market is in panic. Like in March 2020. I bought some shares but I wish, I had more free cash. I would buy more.

Accumulating Dividend Growth Stocks

Last week, we didn’t add any dividend growth stocks to our portfolio.

Our goal is to reach 100 shares of high-quality dividend stocks and build a weekly dividend income as per this calendar, but we have made no changes to this goal last week:
 

 
You can see the entire spreadsheet here.

Market Outlook

After a very strong rally, the market reached the 1st SD (standard deviation) and it was more than obvious that we will bounce from that level. And we did bounce. There was no longer any catalyst for the market to move higher. The earnings season that provided us with the second-best earnings reports was over, so fear of inflation and falling skies took over again and the markets retreated.

But the retreat was mild, almost unnoticeable. If the hyperinflation fears and talks were such a big deal, the markets would already collapse and lose 10% or more percent. But none of it happened. The market lost a mere 1.86% from its peak and on Friday a strong rally almost erased all losses.

Here is what happened last week:
 

 
The market’s move was strong but picture-perfect. Like from a trading book. It reached the level of $4,710 which was a price level determined by the options market at the beginning of the expiration cycle. The big options players watch these levels and adjust their positions accordingly if the market moves towards one or the other level, they start hedging their positions which could fuel a further move towards those levels. Once the level is reached, they close the position and that sparks a retreat.

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 61.88% since we opened our portfolio while our portfolio grew 27.49%. On YTD basis, the S&P 500 grew 32.04% and our portfolio 20.51%.

Our portfolio stock holdings growth got hit by Tesla adjustments as our cost basis changed. But I do not think this is a big deal.

The numbers above apply to our stock holdings only. Our overall account net-liq grew by 365.87% this year! This is thanks to options trading that generates income. It can be also seen how the options help lower our cost basis. Just compare the P&L in the regular (left) column with the P&L in the “Options adjusted” column. For example, our AES holding would be a loser as of today (down -5.71%), but we generated enough income (we can call it also a return of our invested capital) and that position is 128.54% up.
 

Stock holdings Growth YTD

I expect our stock holdings to start outperforming the market very soon. The entire portfolio beats the market by far thanks to monetizing those positions.

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 9.58% 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 54.77% of that goal.

Our 2021 year goal is to grow this account to a $42,344.00. We already accomplished this goal.

Investing and Trading Report – Options Monthly Income

Investing and Trading Report – Options Annual Income

Our dividend goal and future dividends

We have accomplished our dividend income goal. We planned to make $1,071 of dividend income this year and we finished receiving $2,240.32. However, we accumulated enough shares to start making $4,069.72 a year.
 

Our account cumulative return

The chart below indicates our cumulative adjusted return.
 

As of today, our account cumulative return is 59.16% (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.).

Conclusion of our investing and trading report

This week our options trading was within our expectations and I believe, the rest of the month will be even better.

We will continue accumulating the dividend growth stocks in our portfolio to reach 100 shares and continue building our cash reserves so we have enough cash to sustain any market corrections and be able to buy depressed stocks.

We will report our next week’s results next Saturday. Until then, good luck and good trading!