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:

 

Account Value:	$94,185.00	-$1,655.36	-1.73%
Options trading results
Options Premiums Received:	$469.00
01 January 2021 Options:	$4,209.00	+16.65%
02 February 2021 Options:	$4,884.00	+15.41%
03 March 2021 Options:	$5,258.00	+12.79%
04 April 2021 Options:	$2,336.00	+4.30%
05 May 2021 Options:	$6,346.00	+9.22%
06 June 2021 Options:	$4,677.00	+6.37%
07 July 2021 Options:	$3,865.00	+5.14%
08 August 2021 Options:	$6,133.00	+7.40%
09 September 2021 Options:	$2,353.00	+2.97%
10 October 2021 Options:	$8,721.00	+9.27%
11 November 2021 Options:	$1,853.00	1.97%
Options Premiums YTD:	$50,635.00	+53.76%
Dividend income results
Dividends Received:	$230.93
01 January 2021 Dividends:	$53.04
02 February 2021 Dividends:	$63.00
03 March 2021 Dividends:	$30.31
04 April 2021 Dividends:	$139.70
05 May 2021 Dividends:	$167.45
06 June 2021 Dividends:	$168.56
07 July 2021 Dividends:	$228.62
08 August 2021 Dividends:	$780.09
09 September 2021 Dividends:	$176.60
10 October 2021 Dividends:	$256.73
11 November 2021 Dividends:	$349.82
Dividends YTD:	$2,471.25
Portfolio metrics
Portfolio Yield:	4.51%
Portfolio Dividend Growth:	8.13%
Ann. Div Income & YOC in 10 yrs:	$17,554.15	17.77%
Ann. Div Income & YOC in 20 yrs:	$146,305.30	148.08%
Ann. Div Income & YOC in 25 yrs:	$668,119.64	676.23%
Ann. Div Income & YOC in 30 yrs:	$4,834,140.43	4,892.84%
Portfolio Alpha:	48.05%
Portfolio Weighted Beta:	0.52
CAGR:	599.05%
AROC:	42.99%
TROC:	11.57%
Our 2021 Goal
2021 Dividend Goal:	$1,071.42	230.65%	Accomplished
2021 Portfolio Value Goal:	$42,344.06	222.43%	Accomplished
6-year Portfolio Value Goal:	$175,000.00	53.82%
10-year Portfolio Value Goal:	$1,000,000.00	9.42%

 

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!

We all want to hear your opinion on the article above: No Comments

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:

 

Account Value:	$95,840.36	+$139.72	+0.15%
Options trading results
Options Premiums Received:	$628.00
01 January 2021 Options:	$4,209.00	+16.65%
02 February 2021 Options:	$4,884.00	+15.41%
03 March 2021 Options:	$5,258.00	+12.79%
04 April 2021 Options:	$2,336.00	+4.30%
05 May 2021 Options:	$6,346.00	+9.22%
06 June 2021 Options:	$4,677.00	+6.37%
07 July 2021 Options:	$3,865.00	+5.14%
08 August 2021 Options:	$6,133.00	+7.40%
09 September 2021 Options:	$2,353.00	+2.97%
10 October 2021 Options:	$8,721.00	+9.27%
11 November 2021 Options:	$1,384.00	+1.44%
Options Premiums YTD:	$50,166.00	+52.34%
Dividend income results
Dividends Received:	$108.54
01 January 2021 Dividends:	$53.04
02 February 2021 Dividends:	$63.00
03 March 2021 Dividends:	$30.31
04 April 2021 Dividends:	$139.70
05 May 2021 Dividends:	$167.45
06 June 2021 Dividends:	$168.56
07 July 2021 Dividends:	$228.62
08 August 2021 Dividends:	$780.09
09 September 2021 Dividends:	$176.60
10 October 2021 Dividends:	$256.73
11 November 2021 Dividends:	$118.89
Dividends YTD:	$2,240.32
Portfolio metrics
Portfolio Yield:	4.10%
Portfolio Dividend Growth:	8.13%
Ann. Div Income & YOC in 10 yrs:	$17,815.23	15.31%
Ann. Div Income & YOC in 20 yrs:	$132,261.71	113.64%
Ann. Div Income & YOC in 25 yrs:	$549,967.09	472.55%
Ann. Div Income & YOC in 30 yrs:	$3,505,937.34	3,012.43%
Portfolio Alpha:	45.69%
Portfolio Weighted Beta:	0.62
CAGR:	615.29%
AROC:	53.52%
TROC:	14.34%
Our 2021 Goal
2021 Dividend Goal:	$1,071.42	209.10%	Accomplished
2021 Portfolio Value Goal:	$42,344.06	226.34%	Accomplished
6-year Portfolio Value Goal:	$175,000.00	54.77%
10-year Portfolio Value Goal:	$1,000,000.00	9.58%

 

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!

We all want to hear your opinion on the article above: No Comments

The first week of November is behind us. The year is nearing the end and in this investing and trading report, I will attempt to show you not only the results of our weekly trading and investing but also why I think this market is going to a very bullish end. The first week of November started well. We made a decent premium income bringing in $756.00 cash, we made $10.35 in dividends, and our net-liq jumped up by $1,654.80 reaching a total of $95,700.64. I am satisfied with the results so far and I believe, we will see better returns in the remaining weeks of the year.

 

Here is our investing and trading report:

 

Account Value:	$95,700.64	+$1,654.80	+1.76%
Options trading results
Options Premiums Received:	$756.00
01 January 2021 Options:	$4,209.00	+16.65%
02 February 2021 Options:	$4,884.00	+15.41%
03 March 2021 Options:	$5,258.00	+12.79%
04 April 2021 Options:	$2,336.00	+4.30%
05 May 2021 Options:	$6,346.00	+9.22%
06 June 2021 Options:	$4,677.00	+6.37%
07 July 2021 Options:	$3,865.00	+5.14%
08 August 2021 Options:	$6,133.00	+7.40%
09 September 2021 Options:	$2,353.00	+2.97%
10 October 2021 Options:	$8,721.00	+9.27%
11 November 2021 Options:	$756.00	+0.79%
Options Premiums YTD:	$49,538.00	+51.76%
Dividend income results
Dividends Received:	$10.35
01 January 2021 Dividends:	$53.04
02 February 2021 Dividends:	$63.00
03 March 2021 Dividends:	$30.31
04 April 2021 Dividends:	$139.70
05 May 2021 Dividends:	$167.45
06 June 2021 Dividends:	$168.56
07 July 2021 Dividends:	$228.62
08 August 2021 Dividends:	$780.09
09 September 2021 Dividends:	$176.60
10 October 2021 Dividends:	$256.73
11 November 2021 Dividends:	$10.35
Dividends YTD:	$2,131.78
Portfolio metrics
Portfolio Yield:	4.16%
Portfolio Dividend Growth:	8.13%
Ann. Div Income & YOC in 10 yrs:	$17,125.27	15.67%
Ann. Div Income & YOC in 20 yrs:	$129,430.83	118.45%
Ann. Div Income & YOC in 25 yrs:	$546,062.53	499.72%
Ann. Div Income & YOC in 30 yrs:	$3,550,188.16	3,248.92%
Portfolio Alpha:	45.07%
Portfolio Weighted Beta:	0.63
CAGR:	625.36%
AROC:	40.97%
TROC:	14.04%
Our 2021 Goal
2021 Dividend Goal:	$1,071.42	198.97%	Accomplished
2021 Portfolio Value Goal:	$42,344.06	226.01%	Accomplished
6-year Portfolio Value Goal:	$175,000.00	54.69%
10-year Portfolio Value Goal:	$1,000,000.00	9.57%

 

Dividend Investing and Trading Report

 
Last week the stock market moved higher on strong earnings. I keep saying, the market follows earnings. Everything else is just noise and bogus. If you believe that the market is manipulated or rigged, then take the earnings of the S&P 500 per share chart and overlay it over the S&P 500 chart. You will clearly see how highly correlate the two are. So all the rigging and manipulation claims are usually by those people who are losing money because they do not understand the market. And because they do not understand the market, they blame their losses on everything.

The market strong move (and I can tell you it will continue into the end of the year) had a positive impact on our account.

We received $10.35 in dividends last week. We kept adding dividend growth stocks to our portfolio as per our plan and accumulation rules.

Here you can see our dividend income per stock holding:

 

 

Options Investing and Trading Report

 
We generated $756.00 options income last week. Let’s see how our options income will look like by the end of the month. So far, if we continue receiving the same amount of cash, we are set to end November at $3,024 dollars. I hope we will do better than that. But it is too early to say.

Last week we mostly closed or rolled trades that were already worthless (so why sit on them). We added one trade against SPY (bull put spread) and SNOW (also a bull put spread). We closed a strangle against Realty Income (O) due to their merger and spinoff that is happening in November. It should be completed by November 12th. This caused the options to be a non-standard option after November 12th and set to closing only. This would make rolling trades and other adjustments difficult, so I decided to close the trade and reopen after the spinoff.

 

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 $10.35 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. Yet, our portfolio currently yields 4.16% at $95,700.64 market value. I think this is not a bad result.

 
Our projected annual dividend income in 10 years is $17,125.27 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 $4,063.72 annual dividend income. We are 23.73% of our 10 year goal of $17,125.27 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 $121,107.63 to $126,668.98 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 0.79% monthly ROI in November 2021, totaling a 51.76% ROI YTD. We again exceeded our 45% annual revenue selling options against dividend stocks target!

Our account grew by 365.19% beating our projections and the market.
 

Our options trading averaged $4,503.45 per month this year. If this trend continues, we are on track to make $54,041.45 trading options in 2021. As of today, we have made $49,538.00 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 have added shares of SSO to our holdings according to our plan and rules. 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.

 

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 added shares of TD, MSFT, and AAPL to our dividend stock holdings. We are still accumulating SSO and SPXL as a primary goal (a growth sub-goal), but we are also adding dividend stocks to accumulate to 100 shares as that is our overall portfolio primary goal.

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

 

A week ago, it started being obvious that the market is going to rally for the rest of the year. Earnings are beating estimates and outlooks are better than expected. That pushes the market higher. It may be overvalued but its growth is still well in line with the earnings growth. Next year, it can be however a different story as the estimates indicate a lot smaller growth so the market still may go higher but not as strong and fast as today.

Last week, FED also announced its tapering of bond purchases and that would be normally taken as a negative move from FED and if done in the past, the market would throw a taper tantrum. It didn’t happen today.

If you are a subscriber to my newsletter, you will get another issue this weekend and I will describe this more in detail.

Here is what happened last week:
 

 
What you can see is that the markets rallied toward the 4710 level. That was the level what options market priced in as a 1 SD (1 standard deviation) at the beginning of the November expiration cycle. All big players, banks, and hedge funds usually sell options (only retail and Robinhood investors buy them), so at the beginning of the cycle, the big players sell their puts and calls and they usually do so at these levels as marked on our chart above. I do the same. When my October options expire, I sell November options at the same levels.

But then, the hedge funds start hedging and protecting their positions. When the market starts moving toward one or the other level, they start either buying shares or options to hedge the short position. That fuels the move. And that is what you can clearly see on last week’s chart. This was clear hedging and FOMO buying.

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 62.39% since we opened our portfolio while our portfolio grew 35.55%. On YTD basis, the S&P 500 grew 32.55% and our portfolio 28.57%.

Our portfolio grew at the same pace as the overall market and we are pairing this year’s market performance. I expect this trend to continue in the next few years.

The numbers above apply to our stock holdings only. Our overall account net-liq grew by 365.19% 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 -4.68%), but we generated enough income (we can call it also a return of our invested capital) and that position is 126.84% 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 9.57% 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 54.69% 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 $2,131.78. However, we accumulated enough shares to start making $4,063.72 a year.
 

 

Our account cumulative return

 

The chart below indicates our cumulative adjusted return.
 

 

 

As of today, our account cumulative return is 58.93% (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!

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October 2021 is in the books and it was our best month ever. As you will see in this investing and trading report, our net-liquidating value increased by a whopping $14k, our premium income, selling options reached almost $9k and we met our dividend goal by receiving $250 this month. If all future months will look like this year’s October, I will be very happy. This performance is getting me closer to full-time trading. My plan is to start preparing for full-time trading once our account reaches the limit for portfolio margin. Once we get a portfolio margin, we will adjust our trading, create salary reserves, and start shifting to a full-time trading plan. Originally, I had a plan to reach this goal in 6 years but thanks to this trading progress we may be able to reach this goal two or maybe even three years earlier than planned. That will mean that I will finally achieve financial freedom.

 

Here is our investing and trading report:

 

Account Value:	$94,045.84	+$2,595.16	+2.84%
Options trading results
Options Premiums Received:	$477.00
01 January 2021 Options:	$4,209.00	+16.65%
02 February 2021 Options:	$4,884.00	+15.41%
03 March 2021 Options:	$5,258.00	+12.79%
04 April 2021 Options:	$2,336.00	+4.30%
05 May 2021 Options:	$6,346.00	+9.22%
06 June 2021 Options:	$4,677.00	+6.37%
07 July 2021 Options:	$3,865.00	+5.14%
08 August 2021 Options:	$6,133.00	+7.40%
09 September 2021 Options:	$2,353.00	+2.97%
10 October 2021 Options:	$8,721.00	+9.27%
Options Premiums YTD:	$48,782.00	+51.87%
Dividend income results
Dividends Received:	$86.32
01 January 2021 Dividends:	$53.04
02 February 2021 Dividends:	$63.00
03 March 2021 Dividends:	$30.31
04 April 2021 Dividends:	$139.70
05 May 2021 Dividends:	$167.45
06 June 2021 Dividends:	$168.56
07 July 2021 Dividends:	$228.62
08 August 2021 Dividends:	$780.09
09 September 2021 Dividends:	$176.60
10 October 2021 Dividends:	$256.73
Dividends YTD:	$2,105.58
Portfolio metrics
Portfolio Yield:	4.21%
Portfolio Dividend Growth:	8.13%
Ann. Div Income & YOC in 10 yrs:	$19,689.81	15.91%
Ann. Div Income & YOC in 20 yrs:	$167,751.70	121.70%
Ann. Div Income & YOC in 25 yrs:	$779,760.45	518.36%
Ann. Div Income & YOC in 30 yrs:	$5,778,203.82	3413.83%
Portfolio Alpha:	44.94%
Portfolio Weighted Beta:	0.66
CAGR:	632.73%
AROC:	53.55%
TROC:	13.41%
Our 2021 Goal
2021 Dividend Goal:	$1,071.42	196.52%	Accomplished
2021 Portfolio Value Goal:	$42,344.06	222.10%	Accomplished
6-year Portfolio Value Goal:	$175,000.00	53.74%
10-year Portfolio Value Goal:	$1,000,000.00	9.40%

 

Dividend Investing and Trading Report

 
Last week the stock market slowed down its pace upwards and we mostly rolled our trades. We also added SSO but that was all we did. We rolled AES, BABA, and SPY trades. It was a slow week for us but we already reached and exceeded all our goals this week so we could afford to stay aside.

We received $86.32 in dividends last week and that put our dividend income back on track with the plan.

We will keep growing our dividend growth portfolio, in fact, we stopped scaling up our options trading and will focus on adding more dividend growth stocks to our portfolio. Here you can see our dividend income per stock holding. I hope, it will grow faster now:

 

 

Options Investing and Trading Report

 
We generated $477.00 options income last week and that concluded October with total of $8,721.00 option income. The best month ever.

Last week we rolled a few of our positions but stayed quiet most of the time. We are also increasing our buying power minimum limit to $4,000 for November. The reason is to have some cash to be buying opportunities. In the recent past, when the market sold off, I couldn’t buy much because of not having enough cash. With this limit, I want to avoid that situation.

 

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 $86.32 in dividends last week. This income brings our income stream back to the original plan. I was disappointed last week with our dividend income and thought I may have done something wrong with tracking it. Looks like I am still OK.

 
Our projected annual dividend income in 10 years is $19,689.81 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 $4,049.13 annual dividend income. We are 23.59% of our 10 year goal of $19,689.81 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 $118,822.58 to $121,107.63 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 9.27% monthly ROI in October 2021, totaling a 51.87% ROI YTD. We again exceeded our 45% annual revenue selling options against dividend stocks target!

Our account grew by 357.15% beating our projections and the market.
 

Our options trading averaged $4,878.20 per month this year. If this trend continues, we are on track to make $58,538.40 trading options in 2021. As of today, we have made $48,782.00 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 have added shares of SSO to our holdings according to our plan and rules. Our goal for the nearest future is to accumulate 25% of our net-liq in these shares 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.

 

Accumulating Rules

 

Our rule is to buy shares of growth stocks using 20% of any BP value that is above the $3,000 October limit. For example, if our BP ends at $3,900, we can buy shares using 20% of $900 or $180 to accumulate shares of any growth stocks. For November 2021, we are increasing this limit to $4,000 and we will invest 20% of anything above this limit. 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 new dividend stocks to our holdings. We are still accumulating SSO and SPXL, but from now on we may start adding some dividend stock again (of course, when the BP is above the limit as per our rule).

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

 

I expected the market to correct a bit or pull back the recovery. We had a short (just two days) pause on Tuesday and Wednesday last week but then the market shot up again and didn’t look back. If you are asking why or what moved this market the way it did, then the reason was earnings. Companies still report strong earnings and beat expectations. They also provide positive outlooks for the next earnings. Although some companies, such as Apple and Amazon cited supply chain issues as to why they missed their revenue, the market shrugged it off because it considered it a short-term issue that will go away. If you look at the APPL and AMZN chart, the stock opened down but rallied the rest of the day. The market didn’t consider the supply chain to be an issue. If you are a subscriber to my newsletter, you will get another issue this weekend and I will describe this more in detail.

This was my last week’s expectation about the market’s move. I expected a pullback. We had a slight pause instead:
 

 
Understand, that it is earnings and earnings outlook that moves the market. Nothing else. Everything else is completely irrelevant. If you want to see why a market or a stock moved the way it did, look at earnings. There probably was some change in the guidance or analysts may have adjusted their expectations. There are a few analysts that I follow and they regularly publish their outlooks based on companies’ earnings and guidance they provide. Look for earnings per share for the entire market and that will give you all information you need to calculate the intrinsic value of the market. And if the market or stock moves but earnings or outlooks didn’t change, you can be assured that such a move is just noise. In that case, you can safely buy the dip.

Here is what happened last week:
 

 
We didn’t see much bouncing last week but headed directly to a new all-time high. And I expect this trend to continue higher. The $5,000 target is still in play.

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 58.90% since we opened our portfolio while our portfolio grew 31.45%. On YTD basis, the S&P 500 grew 29.05% and our portfolio 24.47%.

Our portfolio, again, grew faster than the overall market and we are pairing this year’s market performance. I expect this trend to continue in the next few years.

The numbers above apply to our stock holdings only. Our overall account net-liq grew by 357.15% 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 -2.47%), but we generated enough income (we can call it also a return of our invested capital) and that position is 132.11% 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 9.40% 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 53.74% 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 $2,105.58. However, we accumulated enough shares to start making $4,048.13 a year.
 

 

Our account cumulative return

 

The chart below indicates our cumulative adjusted return. It shows how the last week’s selloff shook down our returns but we are recovering along with the market.
 

 

 

As of today, our account cumulative return is 56.18% (note, data in this section are since March 13, 2021, only as that is the date we started tracking these metrics. Thus the results are skewed a bit and will show full picture next year.).

 

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!

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