S&P 500 2,901.52 +0.39(+0.01%) Dow 30 25,964.82 -22.10(-0.09%) Nasdaq 8,109.54 +21.17(+0.26%)
August 2018 was a mix bag of goodies and rotten apples, so to speak. It was good until it wasn’t. We made nice income but then the Market started rallying and many of our Iron Condors started seeing call spreads breached.
As I expressed in our Facebook group, I was happy when the market retreated a bit as it released the tension on our call spreads. My dilemma and worries were that if I started rolling the Condors higher and the market retreats more, those rolled Condors will suddenly hurt us on the put side.
We rolled a few Condors with deep in the money calls and sure enough, as the market dipped on Thursday and Friday last week even more, the puts were suddenly in trouble.
No matter what, all adjustments I made to our trades had negative income on our trading income as well as net-liq (net liquidation value). We also closed a few open trades prematurely to release cash in case more rolling will be needed.
Overall, my outlook of the market is bullish so these pullbacks and retreats are just a small consolidation and nothing to worry about. There fore I will not be rolling down those puts which are now in the money but rather keep removing calls as I expect this market to continue higher.
Income, although hurt a bit by adjusting the trades was good, We still made nice $5,575.84 dollars monthly income. Net-liq of all accounts dropped but this doesn’t worry me at all as it is just a temporary decline due to increased volatility of the open trades. If and after those trade close successfully the net-liq would rise back up again. Should the market keep dropping (which I do not expect), then I will start converting all open put trades into calls as we did in February and March this year. Otherwise we will keep trading bullish trades.
Here are the entire 2018 year trading results:
· Dividend stock investing
Dividend investing is doing great on both accounts – ROTH and IRA. I keep using 50% of all options income and buy Dividend stocks. IRA account keeps growing fast with new stocks being purchased every month. ROTH is more or less stagnant.
Here is a review of our accounts stock holdings:
As of now, I do not track dividend stocks in TD account. We have a few positions in dividend stocks but our focus in this account would again bringing it up to speed, grow the capital and then adopt the same strategy as in IRA.
In July we purchased the following shares:
We keep spending 50% of our options trading proceeds to buy good dividend growth stocks using our screener to get a better entry into the stocks. Although capital appreciation is not our goal but a secondary target, timing the entry creates good results as our positions are mostly up. However, do not be too excited, any large selloff can temporarily send those stocks down again. It is a dividend income what matters to our portfolios, not the portfolio value and capital appreciation. It seems to be evident that using options to grow the portfolio is the right way to do.
· Dividend Income
ROTH IRA dividend income
IRA dividend income