Another bad week for our Portfolio. It dropped 12% again last week. But as you will see below, it is just paper losses. I didn’t sell any of my positions and in fact, I bought a few more shares of stocks I want to accumulate. My equity grew higher despite the selloff. So what is pushing the portfolio down? Options. I have many open options positions and yes, most of them are bullish. I also have covered calls which should work in my favor. But they are not. Why? Volatility. The price of these options skyrocketed and the price increase couldn’t be offset by the time decay and delta. But when this bear market eases again, the price of these options collapse and my positions will skyrocket.
Last week my net-liq value, cash, and buying power were a mixed bag. Cash improved, the rest tanked:
Our trading delivered +$1,795.00 premiums last week ending September 2022 at +$2,381.00 (+3.71%) options income. Our net-liq value decreased by -12.63% last week to $64,211.19 value, which is worse than the August drawdown. Our overall account is down -38.64% YTD.
Here is our investing and trading report:
|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:||+$2,381.00||+3.71%|
|Options Premiums YTD:||$53,864.00||+74.48%|
|Dividend income results|
|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:||$186.70|
|Portfolio Dividend Growth:||11.61%|
|Ann. Div Income & YOC in 10 yrs:||$73,485.60||40.43%|
|Ann. Div Income & YOC in 20 yrs:||$2,805,442.84||1,543.41%|
|Ann. Div Income & YOC in 25 yrs:||$57,662,419.04||31,722.96%|
|Ann. Div Income & YOC in 30 yrs:||$4,145,973,452.62||2,280,906.23%|
|Portfolio Weighted Beta:||0.49|
|Our 2022 Goal|
|2022 Dividend Goal:||$4,800.00||79.06%||In Progress|
|2022 Portfolio Value Goal:||$151,638.03||42.35%||In Progress|
|6-year Portfolio Value Goal:||$175,000.00||36.69%||In Progress|
|10-year Portfolio Value Goal:||$1,000,000.00||6.42%||In Progress|
Dividend Investing and Trading Report
Last week we have received $46.67 in dividends bringing our September’s dividend income at $186.70. 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:
And here you can see the dividend income those equities pay us every year:
Growth stocks Investing and Trading Report
Last week, we bought the following growth stocks and funds:
- 5 shares of AMZN @ $136.01
I plan on accumulating 100 shares of this stock. Currently, I am at 20 shares.
- 9 shares of TMUS @ $140.14
I plan on accumulating 100 shares of this stock. Currently, I am at 55 shares.
Options Investing and Trading Report
Last week I was just adjusting my existing options positions.
However, these adjustments delivered a gain of +$1,795.00 making our September options income +$2,381.00.
We were actively trading our SPX strategy that delivered $1,685.00 gain.
Expected Future Dividend Income
We received $46.67 in dividends last week. Our portfolio currently yields 5.67% at $64,211.19 market value.
Our projected annual dividend income in 10 years is $73,485.60, 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 $6,686.70 annual dividend income ($557.22 monthly income). We are 9.10% of our 10 year goal of $73,485.60 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. 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 $170,554.50 to $165,678.58 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.
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 +3.71% monthly ROI in September 2022, totaling a 86.68% 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 -38.64%.
Our options trading averaged $6,184.33 per month this year. If this trend continues, we will make $74,212.00 trading options in 2022. As of today, we have made $55,659.00 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 Stocks holding
Last week, S&P 500 grew 33.90% since we opened our portfolio while our portfolio grew 14.50%. On YTD basis, the S&P 500 fell -30.87% and our portfolio -15.28%. 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 -38.64% this year.
Stock 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 6.42% 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 36.69% of that goal.
Our 2022 year goal is to grow this account to a $151,638.03 and today we accomplished 42.35% of this goal.
Investing and Trading Report – Options Monthly Income
Investing and Trading Report – Options Annual Income
Our dividend goal and future dividends
We plan to make $4,800.00 in dividend income in 2022. As of today, we received $3,794.97. This is in line with our projected dividend 2022 goal. We also accumulated enough shares to start making $6,686.70 a year. Our monthly projected dividend income is $557.22, and our current monthly dividend income is $316.25.
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