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Posted by Martin October 19, 2022
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10.18.22 – TUESDAY MARKET OUTLOOK


Market Outlook Tuesday
 

On Tuesday, the market opened higher but for the entire morning, it was drifting lower. It almost closed the entire opening gap. After that, it traded slightly higher and sideways. The VIX futures term deepened its backwardation indicating that this rally has no legs. Today’s weakness in the price action is confirmed by the VIX which is worse than it was yesterday. Unless the VIX changes (bears get squeezed), I expect selling to resume soon.

 
Market Outlook Tuesday
 

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Posted by Martin October 18, 2022
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10.17.22 – MONDAY MARKET OUTLOOK


Market Outlook Monday
 

The stock market skyrocketed on Monday again. It gained 2.63% but as you can see in the above VIX structure, the market participants remain bearish and the VIX is still in backwardation. I suspect that today’s rally will fail again unless we see continuation and change in the VIX. Until then, expect this rally to be sold off.

 
Market Outlook Monday
 

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Posted by Martin October 15, 2022
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2022 Week 41 investing and trading report


Another volatile bearish market week is behind us, and we did well trading and investing our funds. It is not an easy market, though. I struggle to maintain buying power, which sometimes forces me to sell my stocks and then buy them back on a later day. Even in this market, I keep accumulating stocks as much as possible. I keep buying dividend stocks, and after I reach 100 shares, I start selling options against those positions.
 

My NetLiq-cash-buying power ratio is still in reverse. I have more cash that I can use to trade. That is insane. But as long as I am afloat and even can be buying more shares, I am OK with it:

 
Cash - Net-Liq - BP 41
 

Our trading delivered +$2,334.00 premiums last week ending October 2022 at +$2,388.00 (+4.28%) options income. Our net-liq value increased by +2.56% to $55,803.66 value. That is still a terrible result. Our overall account is now down -46.67% YTD.
 

Here is our investing and trading report:

 

Account Value: $55,803.66 +$1,431.25 +2.56%
Options trading results
Options Premiums Received: +$2,334.00    
01 January 2022 Options: +$8,885.00 +8.36%  
02 February 2022 Options: +$10,009.00 +10.34%  
03 March 2022 Options: -$1,662.00 -1.47%  
04 April 2022 Options: +$1,047.00 +1.19%  
05 May 2022 Options: +$8,604.00 +11.32%  
06 June 2022 Options: +$9,691.00 +13.73%  
07 July 2022 Options: +$8,717.00 +11.39%  
08 August 2022 Options: +$7,987.00 +12.15%  
09 September 2022 Options: +$2,997.00 +5.76%  
10 October 2022 Options: +$2,388.00 +0.10%  
Options Premiums YTD: $58,663.00 +105.12%  
Dividend income results
Dividends Received: $181.28    
01 January 2022 Dividends: $303.38    
02 February 2022 Dividends: $732.81    
03 March 2022 Dividends: $393.74    
04 April 2022 Dividends: $337.31    
05 May 2022 Dividends: $343.99    
06 June 2022 Dividends: $445.80    
07 July 2022 Dividends: $367.66    
08 August 2022 Dividends: $683.58    
09 September 2022 Dividends: $555.20    
10 October 2022 Dividends: $247.38    
Dividends YTD: $4,410.85    
Portfolio Equity
Portfolio Equity: $157,034.06 +$1,435.69 +0.92%
Portfolio metrics
Portfolio Yield: 6.22%    
Portfolio Dividend Growth: 11.61%    
Ann. Div Income & YOC in 10 yrs: $90,640.81 48.03%  
Ann. Div Income & YOC in 20 yrs: $4,286,272.47 2,271.45%  
Ann. Div Income & YOC in 25 yrs: $106,069,380.22 56,209.92%  
Ann. Div Income & YOC in 30 yrs: $9,775,796,121.06 5,180,540.31%  
Portfolio Alpha: 99.69%    
Sharpe Ratio: 33.73 EXCELLENT  
Portfolio Weighted Beta: 0.49    
CAGR: 267.67%    
AROC: 68.02%    
TROC: 3.34%    
Our 2022 Goal
2022 Dividend Goal: $4,800.00 91.89% In Progress
2022 Portfolio Value Goal: $151,638.03 36.80% In Progress
6-year Portfolio Value Goal: $175,000.00 31.89% In Progress
10-year Portfolio Value Goal: $1,000,000.00 5.58% In Progress

 

Dividend Investing and Trading Report

 
Last week we have received $181.28 in dividends bringing our October’s dividend income at $247.38.

Last week, we did not purchase any dividend stock.


 

Here is a chart of our account equity showing our accumulation goal and the value of all stocks in our account. It shows a nice upward-sloping chart as our equities grow. This is a result of our options trading and using premiums to buy dividend stocks:

 
Account Equity week 41
 

And here you can see the dividend income those equities pay us every year:

 
Annual Dividend Payout week 41

 

Growth stocks Investing and Trading Report

 


Last week, we bought the following growth stocks and funds:
 

  • 5 shares of TMUS @ $137.85
     
    I keep accumulating shares of TMUS until I reach 100 shares. Then, I will start selling covered calls. As of today, I own 70 shares of this company. I like TMUS because it holds value despite our bear market. People will use phones, telecommunication, and internet services even during the recession so that TMUS will prosper. And I believe it is trading at a great value compared to its future value. It may be overvalued compared to today’s fundamentals, but not towards future fundamentals. I provide an analysis of this stock in my weekly newsletter, so if you are interested, subscribe to the newsletter and read my analysis of the market and some individual stocks.

 

Options Investing and Trading Report

 

Last week options trading delivered a gain of +$2,334.00 making our October options income +$2,388.00.

 

We were actively trading our SPX strategy that delivered $265.00 gain.


 

Expected Future Dividend Income

 
We received $181.28 in dividends last week. Our portfolio currently yields 6.22% at $55,803.66 market value.

 
Our projected annual dividend income in 10 years is $90,640.81, but that projection is if we do absolutely nothing and let our positions grow without adding new positions or reinvesting the dividends.

We are also set to receive a $6,691.50 annual dividend income ($557.62 monthly income). We are 7.38% of our 10 year goal of $90,640.81 dividend income.

 
Future Divi on YOC week 41
 

The chart above shows how our future dividend income is based on the future yield on cost and what dividend income we may expect. The expected dividend growth depends on what stocks we add 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 $155,598.37 to $157,034.06 last week.

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

 
Stock holdings trading week 41
 

We aim to accumulate 100 shares of dividend growth stocks we like and then start selling covered calls or strangles around those positions. We also planned on reinvesting all dividends back into those holdings.
 

Investing and trading ROI

 

Our options trading delivered a +4.28% monthly ROI in October 2022, totaling a 105.12% ROI YTD. If our options income stays at this level by the end of the year, we will exceed our 45% annual revenue goal in selling options against dividend stocks.

Our entire account is still down -46.67%.
 

Our options trading averaged $5,866.30 per month this year. If this trend continues, we will make $70,395.60 trading options in 2022. As of today, we have made $58,663.00 trading options.
 

Old SPX trades repair

 

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

 

Investing and trading report in charts

 

Account Net-Liq

 

TW Account trading Net-Liq week 40

This drawdown of our account is extremely discouraging. It’s like all previous gains were all wiped out. But this is just a temporary drawdown. I am not selling any stock positions despite the losses. I will keep buying more shares if possible. I also have losses in my options trades. I am rolling those trades to keep them alive and adjusting them slowly, one by one, until they expire as winners. Then, this terribly-looking chart improves. It will be a long process to get back up, but I am determined.
 

Account Stocks holding

 
TW Account holdings week 41
 

Last week, S&P 500 grew 23.86% since we opened our portfolio while our portfolio grew 2.21%. On YTD basis, the S&P 500 fell -40.90% and our portfolio -27.57%. We are outperforming the market.

The numbers above apply to our stock holdings only. Our overall account net-liq is down by -46.67% this year.
 

Stock holdings Growth YTD

 
TW Account holdings Growth YTD
 

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

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 5.58% 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 31.89% of that goal.
 

Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 36.80% of this goal.

I am afraid our account is no longer on track to accomplish our 2022 year goal. We may accomplish our dividend and options income goals, but our account balance (Net-Liq) will be down significantly. Of course, if the market finally rallies by the end of the year, it may all change, but if not, we will fail.

 

Investing and Trading Report – Options Monthly Income

 
TW Options Trading Income week 41
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Trading Income week 41
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 41
 

We plan to make $4,800.00 in dividend income in 2022. As of today, we received $4,410.85. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $6,691.50 a year. Our monthly projected dividend income is $557.62, and our current monthly dividend income is $367.57.
 

TW Received vs Future Dividends week 41

 

I have a favor to ask. If you like this report, please, hit the like like button button so I know that there is enough audience that like this content. Also, if there is something you want to know or you want me to change this report to a different format, let me know in the comments section.

 
 




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Posted by Martin October 15, 2022
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2022 SPX put credit spreads trading review – week 41


We traded only two SPX trades last week and one SPY butterfly adjustment. That trade may end busted. Maybe, next week I will try to adjust that trade again to squeeze some credit from it, but as of today, the trade might be just a bust. I wanted to adjust that trade to a credit spread, but then the market reversed and started selling hard at the end of the week. I am glad I didn’t touch that trade, as the protection I put in may still be needed.
 

Our trades delivered a $265.00 gain. Our account weekly trading is up by 0.72% while SPX lost -1.55%.
 

Our SPX account is up +927.89% since the beginning of this program, and we have $41,215 in unrealized gains.

 

Initial SPX trade set ups

 

I dedicated a $3,600 initial amount that will be used to trade SPX PCS strategy per week. Today, the account is up at $37,003.95. However, due to the recent bear market, many trades are still tight to open trades which need to expire to release the funds.
 

Our SPX strategy is designed as directional options trading. We are selling credit put spreads to collect premiums, and hopefully, these spreads expire worthlessly, or we repurchase them for a small debit.

We use a set of indicators (primarily based on moving averages and volume profiles) and market sentiment that generates bullish signals. The trading is based on a “trend-following strategy.” We open the trade if we have a bullish signal and a bullish trend. If we do not have a signal, we stay away. We also trade credit call spreads when we have bearish signals. In a choppy market, we stay away from or trade very short expirations (usually 1 or 2 days or up to 7 days), but the trading is muted as we need a trending market. Unfortunately, today, we do not have a trending market (yes, overall, it is a down-trending market, but for short-term trades, it is choppy and not trending).
 

Here you can see all our trades:

 
SPX PCS account value
Click on the picture above to see the entire list.
 

Last week trading

 

Overall, the strategy resulted in a +927.89% gain last week.
 

Initial account value (since inception: 12/07/2021): $3,600.00
Last week beginning value: $36,738.95
Last week ending value: $37,003.95 (0.72%; total: +927.89%)
The highest capital requirements to trade this strategy: $19,995
Current capital at risk: -$12,215
Unrealized Gain: $41,215 (-337.41%)
Realized Gain: -$7,655 (62.67%)
Total Gain: $33,560 (-274.74%)
Win Ratio: 56%
Average Winner: $315
Average Loser: $512

 

SPX PCS account value
SPX PCS account value
 

SPX PCS account vs SPX
SPX PCS account vs SPX index net liq
 

SPX PCS account vs SPX
SPX PCS account vs SPX index
 

If you want to receive trade alerts whenever we open a new SPX put credit spread or a hedge trade, you can subscribe to our service:

 

 

Note, if you wish to subscribe to multiple levels, you can do so by subscribing to one level only and then sending 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 October 09, 2022
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2022 Week 40 investing and trading report


Last week when the market rallied my account recovered and it went from $52k to over $65k in a day. Then it crashed and I am pretty much back where I started. Because of this extreme volatility and bearishness out there, I didn’t do too much trading last week. But I was buying the SPXL fund as I think this is the right thing to do. When the market goes down, I am buying this 3x leveraged ETF, and once the market recovers, I will be trimming that position. And, on top of that, I am selling covered calls.
 

I still struggle with cash and buying power. It is difficult to stay afloat. Many times during this bear market, it was the options dragging my account down, now my stocks joined the party and drag the account down too.

 
Cash - Net-Liq - BP 40
 

I didn’t trade much last week, only one covered call. That trading delivered +$54.00 premiums last week ending October 2022 at +$54.00 (+0.10%) options income. Our net-liq value increased by 4.36% to $54,372.41 value. That is still a terrible result. Our overall account is now down -48.04% YTD.
 

Here is our investing and trading report:

 

Account Value: $54,372.41 +$2,369.84 +4.36%
Options trading results
Options Premiums Received: +$54.00    
01 January 2022 Options: +$8,885.00 +8.36%  
02 February 2022 Options: +$10,009.00 +10.34%  
03 March 2022 Options: -$1,662.00 -1.47%  
04 April 2022 Options: +$1,047.00 +1.19%  
05 May 2022 Options: +$8,604.00 +11.32%  
06 June 2022 Options: +$9,691.00 +13.73%  
07 July 2022 Options: +$8,717.00 +11.39%  
08 August 2022 Options: +$7,987.00 +12.15%  
09 September 2022 Options: +$2,997.00 +5.76%  
10 October 2022 Options: +$54.00 +0.10%  
Options Premiums YTD: $56,329.00 +103.60%  
Dividend income results
Dividends Received: $66.10    
01 January 2022 Dividends: $303.38    
02 February 2022 Dividends: $732.81    
03 March 2022 Dividends: $393.74    
04 April 2022 Dividends: $337.31    
05 May 2022 Dividends: $343.99    
06 June 2022 Dividends: $445.80    
07 July 2022 Dividends: $367.66    
08 August 2022 Dividends: $683.58    
09 September 2022 Dividends: $555.20    
10 October 2022 Dividends: $66.10    
Dividends YTD: $4,229.57    
Portfolio Equity
Portfolio Equity: $155,598.37 +$10,690.90 +7.38%
Portfolio metrics
Portfolio Yield: 6.26%    
Portfolio Dividend Growth: 11.94%    
Ann. Div Income & YOC in 10 yrs: $93,721.93 50.84%  
Ann. Div Income & YOC in 20 yrs: $5,173,549.98 2,806.32%  
Ann. Div Income & YOC in 25 yrs: $151,140,212.01 81,984.01%  
Ann. Div Income & YOC in 30 yrs: $18,002,931,729.22 9,765,452.92%  
Portfolio Alpha: 98.29%    
Sharpe Ratio: -14.49 BAD  
Portfolio Weighted Beta: 0.47    
CAGR: 267.19%    
AROC: 66.55%    
TROC: 2.22%    
Our 2022 Goal
2022 Dividend Goal: $4,800.00 88.12% In Progress
2022 Portfolio Value Goal: $151,638.03 35.86% In Progress
6-year Portfolio Value Goal: $175,000.00 31.07% In Progress
10-year Portfolio Value Goal: $1,000,000.00 5.44% In Progress

 

Dividend Investing and Trading Report

 
Last week we have received $66.10 in dividends bringing our October’s dividend income at $66.10.


Last week, we bought these dividend growth stocks:

 
– 2 shares of COST @ $490.46
 
I plan on accumulating Costco shares and this is my initial investment. I will be slowly adding more shares in the near future until I reach 100 shares.

 

Here is a chart of our account equity showing our accumulation goal and the value of all stocks in our account. It shows a nice upward-sloping chart as our equities grow. This is a result of our options trading and using premiums to buy dividend stocks:

 
Account Equity week 40
 

And here you can see the dividend income those equities pay us every year:

 
Annual Dividend Payout week 40

 

Growth stocks Investing and Trading Report

 


Last week, we bought the following growth stocks and funds:
 

  • 35 shares of SPXL @ $62.60
     
    I accumulated 200 shares of this ETF and started selling another covered call contract. I believe, accumulating this 3x leveraged ETF during this bear market is a great opportunity that will pay big in a recovery.

     

Options Investing and Trading Report

 
Last week I was not trading options much. I only opened one covered call against SPXL. The call was with Friday’s expiration and it expired for a full profit. Next week I will reopen the position.

That trade delivered a gain of +$54.00 making our October options income +$54.00.

 

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


 

Expected Future Dividend Income

 
We received $66.10 in dividends last week. Our portfolio currently yields 6.26% at $54,372.41 market value.

 
Our projected annual dividend income in 10 years is $93,721.93, but that projection is if we do absolutely nothing and let our positions grow without adding new positions or reinvesting the dividends.

We are also set to receive a $6,676.00 annual dividend income ($556.33 monthly income). We are 7.12% of our 10 year goal of $93,721.93 dividend income.

 
Future Divi on YOC week 40
 

The chart above shows how our future dividend income is based on the future yield on cost and what dividend income we may expect. The expected dividend growth depends on what stocks we add 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 $144,907.47 to $155,598.37 last week.

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

 
Stock holdings trading week 40
 

We aim to accumulate 100 shares of dividend growth stocks we like and then start selling covered calls or strangles around those positions. We also planned on reinvesting all dividends back into those holdings.
 

Investing and trading ROI

 

Our options trading delivered a +0.10% monthly ROI in October 2022, totaling a 103.60% ROI YTD. If our options income stays at this level by the end of the year, we will exceed our 45% annual revenue goal in selling options against dividend stocks.

Our entire account is still down -48.04%.
 

Our options trading averaged $5,632.90 per month this year. If this trend continues, we will make $67,594.80 trading options in 2022. As of today, we have made $56,329.00 trading options.
 

Old SPX trades repair

 

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

 

Investing and trading report in charts

 

Account Net-Liq

 

TW Account trading Net-Liq week 40
 

Account Stocks holding

 
TW Account holdings week 40
 

Last week, S&P 500 grew 25.82% since we opened our portfolio while our portfolio grew 2.54%. On YTD basis, the S&P 500 fell -38.94% and our portfolio -27.23%. This is an excellent result! We are significantly outperforming the market.

The numbers above apply to our stock holdings only. Our overall account net-liq is down by -48.04% this year.
 

Stock holdings Growth YTD

 
TW Account holdings Growth YTD
 

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

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 5.44% 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 31.07% of that goal.
 

Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 35.86% of this goal.

 

Investing and Trading Report – Options Monthly Income

 
TW Options Trading Income week 40
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Trading Income week 40
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 40
 

We plan to make $4,800.00 in dividend income in 2022. As of today, we received $4,229.57. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $6,676.00 a year. Our monthly projected dividend income is $556.33, and our current monthly dividend income is $352.46.
 

TW Received vs Future Dividends week 40

 

I have a favor to ask. If you like this report, please, hit the like like button button so I know that there is enough audience that like this content. Also, if there is something you want to know or you want me to change this report to a different format, let me know in the comments section.

 
 




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Posted by Martin October 09, 2022
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2022 SPX put credit spreads trading review – week 40


Last week SPX trading started well… and then it all puked again. This is definitely a very difficult time to trade. You can get whipsawed quickly or you adopt a strategy where you maintain the trades and adjust them to stay afloat and eventually a winner in the end. Some traders open a trade, usually a zero DTE one, and then place a stop loss. Unless you are a full-time trader and can watch the trade you will most likely lose money being stopped almost every time. How do you react to a trade when the market rallies in the morning and pukes in the afternoon? I adopted a strategy where I roll the trades no matter whether others like it or hate it. It is capital intensive, sometimes very frustrating, but doable.
 

I traded a little last week. I opened a trade that almost went bust. Fortunately, it expired a day before that market pooped again. Then I opened a debit trade (a butterfly, which I adjusted – I should have not touched it – and later adjusted it again).

These trades delivered a -$85.00 loss. It is not a loss, but debit I paid for the debit trades, so it still may change next week if these trades play out. Our account is down by -0.23% while SPX gained +1.51%.
 

Our SPX account is up +920.53% since the beginning of this program, and we have $36,738.95 in unrealized gains.

 

Initial SPX trade set ups

 

I dedicated a $3,600 initial amount that will be used to trade SPX PCS strategy per week. Today, the account is up at $36,738.95. However, due to the recent bear market, many trades are still tight to open trades which need to expire to release the funds.
 

Our SPX strategy is designed as directional options trading. We are selling credit put spreads to collect premiums, and hopefully, these spreads expire worthlessly, or we repurchase them for a small debit.

We use a set of indicators (primarily based on moving averages and volume profiles) and market sentiment that generates bullish signals. The trading is based on a “trend-following strategy.” We open the trade if we have a bullish signal and a bullish trend. If we do not have a signal, we stay away.

We set the set of rules and alerts and backtested them. The backtesting software proved that the strategy was viable and returned good gains. We also tried to automate the decision-making as much as possible to have the trading as mechanical as possible. This helps eliminate our emotions. The decision-making was reduced to: “bullish signal present” – open a trade, “not present” – stay away. It worked well.

Here you can see all our trades:

 
SPX PCS account value
Click on the picture above to see the entire list.
 

Last week trading

 

Overall, the strategy resulted in a +920.53% gain last week.
 

Initial account value (since inception: 12/07/2021): $3,600.00
Last week beginning value: $36,823.95
Last week ending value: $36,738.95 (-0.23%; total: +920.53%)
The highest capital requirements to trade this strategy: $19,995
Current capital at risk: -$12,215
Unrealized Gain: $41,215 (-337.41%)
Realized Gain: -$7,920 (64.84%)
Total Gain: $33,295 (-272.57%)
Win Ratio: 56%
Average Winner: $318
Average Loser: $512

 

SPX PCS account value
SPX PCS account value
 

SPX PCS account vs SPX
SPX PCS account vs SPX index net liq
 

SPX PCS account vs SPX
SPX PCS account vs SPX index
 

If you want to receive trade alerts whenever we open a new SPX put credit spread or a hedge trade, you can subscribe to our service:

 

 

Note, if you wish to subscribe to multiple levels, you can do so by subscribing to one level only and then sending 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 October 02, 2022
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2022 Week 38-39 investing and trading report


I feel like Cathy Woods now. Her ARKK fund lost over 60% this year. My portfolio is down 50%… That is bad for my trading and investing, isn’t it? My stocks are down 18.9% for the year. The rest are losses in options. Am I worried? No. The losses are just on paper as the options are either in the money or sport high implied volatility. This will change once the market improves. But it will take time to repair the damage. I hope I will be able to make money while doing it.
 

I now have more cash than the net-liquidating value of my portfolio. That is unimaginable…

 
Cash - Net-Liq - BP 39
 

Our trading delivered +$616.00 premiums last week ending September 2022 at +$2,997.00 (+5.76%) options income. Our net-liq value decreased by -23.48% in last two weeks to $52,002.57 value. That is a terrible result. Our overall account is now down -50.31% YTD.
 

Here is our investing and trading report:

 

Account Value: $52,002.57 -$12,208.62 -23.48%
Options trading results
Options Premiums Received: +$1,795.00    
01 January 2022 Options: +$8,885.00 +8.36%  
02 February 2022 Options: +$10,009.00 +10.34%  
03 March 2022 Options: -$1,662.00 -1.47%  
04 April 2022 Options: +$1,047.00 +1.19%  
05 May 2022 Options: +$8,604.00 +11.32%  
06 June 2022 Options: +$9,691.00 +13.73%  
07 July 2022 Options: +$8,717.00 +11.39%  
08 August 2022 Options: +$7,987.00 +12.15%  
09 September 2022 Options: +$2,997.00 +5.76%  
Options Premiums YTD: $56,275.00 +108.22%  
Dividend income results
Dividends Received: $368.50    
01 January 2022 Dividends: $303.38    
02 February 2022 Dividends: $732.81    
03 March 2022 Dividends: $393.74    
04 April 2022 Dividends: $337.31    
05 May 2022 Dividends: $343.99    
06 June 2022 Dividends: $445.80    
07 July 2022 Dividends: $367.66    
08 August 2022 Dividends: $683.58    
09 September 2022 Dividends: $555.20    
Dividends YTD: $4,163.47    
Portfolio Equity
Portfolio Equity: $144,907.47 -$20,771.11 -12.54%
Portfolio metrics
Portfolio Yield: 6.43%    
Portfolio Dividend Growth: 12.20%    
Ann. Div Income & YOC in 10 yrs: $98,406.63 55.56%  
Ann. Div Income & YOC in 20 yrs: $6,522,861.27 3,682.74%  
Ann. Div Income & YOC in 25 yrs: $229,246,444.67 129,430.22%  
Ann. Div Income & YOC in 30 yrs: $35,905,621,206.13 20,271,949.25%  
Portfolio Alpha: 102.71%    
Sharpe Ratio: -7.61 BAD  
Portfolio Weighted Beta: 0.50    
CAGR: 265.14%    
AROC: 69.16%    
TROC: 3.02%    
Our 2022 Goal
2022 Dividend Goal: $4,800.00 86.74% In Progress
2022 Portfolio Value Goal: $151,638.03 34.29% In Progress
6-year Portfolio Value Goal: $175,000.00 29.72% In Progress
10-year Portfolio Value Goal: $1,000,000.00 5.20% In Progress

 

Dividend Investing and Trading Report

 
Last week we have received $368.50 in dividends bringing our September’s dividend income at $555.20. That met my expectations.

Last week, we did not purchase any dividend stock.

 

Here is a chart of our account equity showing our accumulation goal and the value of all stocks in our account. It shows a nice upward-sloping chart as our equities grow. This is a result of our options trading and using premiums to buy dividend stocks:

 
Account Equity week 39
 

And here you can see the dividend income those equities pay us every year:

 
Annual Dividend Payout week 39

 

Growth stocks Investing and Trading Report

 

Last week, we purchased no growth stocks.

Options Investing and Trading Report

 
Last week I was just adjusting my existing options positions.

However, these adjustments delivered a gain of +$616.00 making our September options income +$2,997.00.

 

We were actively trading our SPX strategy that delivered $3,597.00 gain.


 

Expected Future Dividend Income

 
We received $368.50 in dividends last week. Our portfolio currently yields 6.43% at $52,002.57 market value.

 
Our projected annual dividend income in 10 years is $98,406.63, but that projection is if we do absolutely nothing and let our positions grow without adding new positions or reinvesting the dividends.

We are also set to receive a $6,548.80 annual dividend income ($545.73 monthly income). We are 6.65% of our 10 year goal of $98,406.63 dividend income.

 
Future Divi on YOC week 39
 

The chart above shows how our future dividend income is based on the future yield on cost and what dividend income we may expect. The expected dividend growth depends on what stocks we add 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 $165,678.58 to $144,907.47 last week.

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

 
Stock holdings trading week 39
 

We aim to accumulate 100 shares of dividend growth stocks we like and then start selling covered calls or strangles around those positions. We also planned on reinvesting all dividends back into those holdings.
 

Investing and trading ROI

 

Our options trading delivered a +5.76% monthly ROI in September 2022, totaling a 108.22% ROI YTD. If our options income stays at this level by the end of the year, we will exceed our 45% annual revenue goal in selling options against dividend stocks.

Our entire account is still down -50.31%.
 

Our options trading averaged $6,252.78 per month this year. If this trend continues, we will make $75,033.33 trading options in 2022. As of today, we have made $56,275.00 trading options.
 

Old SPX trades repair

 

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

 

Investing and trading report in charts

 

Account Net-Liq

 

TW Account trading Net-Liq week 39
 

Account Stocks holding

 
TW Account holdings week 39
 

Last week, S&P 500 grew 23.95% since we opened our portfolio while our portfolio grew -0.12%. On YTD basis, the S&P 500 fell -40.81% and our portfolio -29.89%. This is an excellent result! We are significantly outperforming the market.

The numbers above apply to our stock holdings only. Our overall account net-liq is down by -50.31% this year.
 

Stock holdings Growth YTD

 
TW Account holdings Growth YTD
 

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

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 5.20% 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 29.72% of that goal.
 

Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 34.29% of this goal.

 

Investing and Trading Report – Options Monthly Income

 
TW Options Trading Income week 39
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Trading Income week 39
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 39
 

We plan to make $4,800.00 in dividend income in 2022. As of today, we received $4,163.47. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $6,548.80 a year. Our monthly projected dividend income is $545.73, and our current monthly dividend income is $346.96.
 

TW Received vs Future Dividends week 39

 

I have a favor to ask. If you like this report, please, hit the like like button button so I know that there is enough audience that like this content. Also, if there is something you want to know or you want me to change this report to a different format, let me know in the comments section.

 
 




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Posted by Martin October 01, 2022
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2022 SPX put credit spreads trading review – week 38-39


I didn’t have much time to report a trading a week ago as I was traveling. Fortunately, I could manage the trades. When preparing today’s report on our SPX trading, I was surprised to see that I had made money. We delivered enough credit to eventually offset other trades. We will be working on that to reduce our trades. We have too many box trades now.
 

Our trades delivered a $3,597.00 gain last week. That brought our account up by +10.83% while SPX lost -7.43%.
 

Our SPX account is up +922.89% since the beginning of this program, and we have $36,823.95 in unrealized gains.

 

Initial SPX trade set ups

 

I dedicated a $3,600 initial amount that will be used to trade SPX PCS strategy per week. Today, the account is up at $36,823.95. However, due to the recent bear market, many trades are still tight to open trades which need to expire to release the funds.
 

Our SPX strategy is designed as directional options trading. We are selling credit put spreads to collect premiums, and hopefully, these spreads expire worthlessly, or we repurchase them for a small debit.

We use a set of indicators (primarily based on moving averages and volume profiles) and market sentiment that generates bullish signals. The trading is based on a “trend following strategy.” We open the trade if we have a bullish signal and a bullish trend. If we do not have a signal, we stay away.

We set the set of rules and alerts and backtested them. The backtesting software proved that the strategy was viable and returned good gains. We also tried to automate the decision-making as much as possible to have the trading as mechanical as possible. This helps eliminate our emotions. The decision-making was reduced to: “bullish signal present” – open a trade, “not present” – stay away. It worked well.

Here you can see all our trades:

 
SPX PCS account value
Click on the picture above to see the entire list.
 

Last week trading

 

Overall, the strategy resulted in a +922.89% gain last week.
 

Initial account value (since inception: 12/07/2021): $3,600.00
Last week beginning value: $33,226.95
Last week ending value: $36,823.95 (+10.83%; total: +922.89%)
The highest capital requirements to trade this strategy: $19,995
Current capital at risk: -$12,312
Unrealized Gain: $41,312 (-335.54%)
Realized Gain: -$8,102 (65.81%)
Total Gain: $33,210 (-269.74%)
Win Ratio: 56%
Average Winner: $324
Average Loser: $512

 

SPX PCS account value
SPX PCS account value
 

SPX PCS account vs SPX
SPX PCS account vs SPX index net liq
 

SPX PCS account vs SPX
SPX PCS account vs SPX index
 

If you want to receive trade alerts whenever we open a new SPX put credit spread or a hedge trade, you can subscribe to our service:

 

 

Note, if you wish to subscribe to multiple levels, you can do so by subscribing to one level only and then sending 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 October 01, 2022
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September 2022 $100 Challenge account review


The stock market is still in crash mode. For the entire of September, the market lost significantly, and our strategy was losing too. But I am not concerned. We are sitting tight and investing in stocks that will deliver nice dividends while waiting for recovery. This strategy is designed for a small account and today’s market is not suitable for small accounts, so we have to wait it out and wait for a better time to resume trading options. But as soon as the market improves, we will also resume trading. Until then, we are in accumulation mode only. Sometimes, it is a lot better strategy to just wait.
 

Accumulation phase

 
The account is underperforming our goal. We are investing in stocks of our interest and building equity positions first. After we build our equity, we will be wheeling the positions. If you are not patient and want to trade right now with a small account, you can get burned significantly. The margin requirements can shift sharply and hurt your account. Trust me. I struggle with it in my main account when the maintenance requirements change sharply overnight, and I am in trouble. But my main account is big enough to navigate this and stay afloat. Our Challenge account doesn’t have that power.
 

August 2022 Challenge account review

 

MONTH GOAL $$ ACTUAL $$
August 2021: $409.00 $397.71
September 2021: $512.00 $476.91
October 2021: $615.00 $632.37
November 2021: $718.00 $659.00
December 2021: $821.00 $802.08
January 2022: $924.00 $594.29
February 2022: $1,027.00 $283.87
March 2022: $1,130.00 $301.74
April 2022: $1,233.00 $350.56
May 2022: $1,336.00 $428.82
June 2022: $1,439.00 $459.70
July 2022: $1,542.00 $641.27
August 2022: $1,645.00 $653.32
September 2022: $1,748.00 $617.92

 

$100 Challenge account review

 
From the chart above, the red dot (line) indicates the current account value, compared to the blue line (plan). Our account is underperforming our goal. But I expect this to improve with the market. We will keep buying assets and monetize them once we accumulate enough shares.
 

August 2022 Overall Challenge account review

 
The chart below indicates our account value compared to the overall goal and plans to grow the $100 investment into a $75,000 portfolio. As of today, we are still at the beginning of our journey.

YEAR CONTRIBUTIONS $$ GOAL $$ ACTUAL $$
Year 0: $100.00 $100.00 $100.00
Year 1: $1,300.00 $1,336.00 $459.70
Year 2: $2,500.00 $3,016.96 $617.92
Year 3: $3,700.00 $5,303.07  
Year 4: $4,900.00 $8,412.17  
Year 5: $6,100.00 $12,640.55  
Year 6: $7,300.00 $18,391.15  
Year 7: $8,500.00 $26,211.96  
Year 8: $9,700.00 $36,848.27  
Year 9: $10,900.00 $51,313.64  
Year 10: $12,100.00 $70,986.56  

 

$100 Challenge account review goal

 

August 2022 Challenge account Income

 

Total Invested in Stocks $903.07
Total Unrealized Profit -$287.48
Total Realized Profit -$1.17
Strangles Income -$1,316.00
Dividends Income $32.84
Deposits Total $1700.00
Cash $4.57
Net-Liq $617.92

 

If you want to see what investments we take and what trades and strategies we will use to grow this small account, join our program today and grow your money. We engage in safe investments, select strategies to maximize winning trades, and grow our portfolio. And you can do it too, today! We do not provide quick rich promises, gambling, or reckless strategies. We want our portfolio to grow steadily and preserve our capital while maximizing returns.
 

As a member, you will have access to the following features:
 

 

 




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Posted by Martin October 01, 2022
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HFEA September 2022 strategy report


The stock market is tanking, which takes a toll on our strategy. We are down again. But this time, the strategy only lost the previous gains, and we are on par with the stock market. I will keep adding to the position as the market goes lower. When we recover, the SPXL will recover faster, and the strategy will outperform.

Initially, I dedicated $15,000 to this strategy. That represented approx. 15% of our portfolio. When the SPXL underperforms the market and my position goes down and is below my cost basis (my position is in red), I add new shares to my portfolio. I deposit cash and buy shares. Once this bear market ends, and trust me, it will, as no bear market lasts forever, I will stop buying new shares but trim the position and save cash from selling for the next bear market. This is a standard balancing approach. Keep my position at about 15% of my main portfolio. When it moves to 20% (or more), I sell enough to bring the position back down to 15%. If it moves down to 10%, I will buy enough to bring it back to 15%, and so on.

In today’s bearish market, I am adding new cash and buying. Even though it is hurting my net-liq short term.
 

MONTH NET-LIQ PROFIT/
LOSS
PROFIT/
LOSS %%
November 2021 $13,441.91 $0.00 0.00%
December 2021 $14,773.72 $1,331.81 9.91%
January 2022 $12,597.96 -$2,175.76 -14.73%
February 2022 $11,665.69 -$932.27 -7.40%
March 2022 $12,483.01 $817.32 7.01%
April 2022 $8,694.65 -$3,788.36 -30.35%
May 2022 $6,923.49 -$1,771.16 -20.37%
June 2022 $12,199.81 $5,276.32 76.21%
July 2022 $15,551.55 $3,351.74 27.47%
August 2022 $13,414.80 -$2,136.75 -13.74%
September 2022 $10,454.70 -$2,960.10 -22.07%

 

Our HFEA strategy lost value in September 2022 by -22.07% while the entire market lost -8.94%. Overall, the HFEA portfolio is down -22.22% while the entire market is down -21.23%. I think that is not a bad result, considering how leveraged the SPXL is. I expect the strategy to be lower, so I am pleased with this result.
 

HFEA charts

 
HFEA net-liq 09
Strategy Net liquidation value
 

HFEA net-liq 09
Strategy vs SPY Net liquidation value
 

HFEA vs SPY
Strategy performance vs. SPY
 

September 2022 was not a good month for this strategy as the SPXL lost significant value (remember, the leveraged ETFs work both ways – they go up 3 times, but they also go down 3 times).
 
 




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