Dividends, Investing and Options Trading Weekly Update 10/01/22

Well, this week the markets continued to fall. The S&P 500, NASDAQ and Dow Jones are all at or near lows for 2022. Inflation remains high and is not coming down despite the aggressive interest rate hikes by the Fed. Economic conditions appear to be deteriorating both in the U.S. and globally. Geopolitical tensions remain high. While I have no idea what the future holds, I feel like we are heading toward a recession and things will get a lot worse before it gets better. While I can’t control the macroeconomic issues, I can control my situation. I am going to continue to save and invest. Let’s check out my weekly update on dividends, investing and options trading.

Dividends

The following dividends were received the the Traditional IRA this week:

• Schwab U.S. Dividend Equity ETF (SCHD) – $88.72
• Vanguard Total Stock Market Index ETF (VTI) – $25.39
• Brookfield Renewable Corp. (BEPC) – $16.26
• PepsiCo Inc. (PEP) – $25.42
• Broadcom Inc. (AVGO) – $23.21
• Fidelity Government Money Market (SPAXX) – $3.15

In the Roth IRA this week, the following dividends were received :

• Schwab U.S. Dividend Equity ETF (SCHD) – $5.22
• Vanguard Growth Index ETF (VUG) – $0.77
• Fidelity Government Money Market (SPAXX) – $0.17
• Digital Realty Trust Inc. (DLR) – $1.46
• Crown Castle Inc. (CCI) – $0.66
• Amplify CWP Enhanced Dividend ETF (DIVO) – $2.23

The following dividend was received in the taxable brokerage account this week:

• Vanguard Total Stock Market Index ETF (VTI) – $0.22

The dividends from VUG and VTI (in the taxable brokerage account) were deposited into the core account to be reinvested at a future time. All other dividends were reinvested back into the underlying positions.

The total amount of dividends received this week was $192.88.

Investing

I made following buys in the Traditional IRA this week:

• U.S. Bancorp (USB) – 0.50 shares
• Vanguard Total Stock Market Index ETF (VTI) – 0.10 shares
• Schwab U.S. Dividend Equity ETF (SCHD) – 0.20 shares

In the Roth IRA, I made the following buys this week:

• Schwab U.S. Dividend Equity ETF (SCHD) – .833 shares
• Amplify CWP Enhanced Dividend ETF (DIVO) – 0.364 shares

This week I made some changes and rebalanced the 401k. The following is the additions:

• Vanguard Total Stock Market Index Fund – 242.162 units
• DFA Commodity Strategy Portfolio – 0.179 units

The following sells were made in the 401k this week:

• Vanguard Mid-Cap Index Fund – 17.884 units (completely sold out of this position)
• Vanguard Small-Cap Index Fund – 21.209 units (completely sold out of this position)
• American Funds Capital Income Builder Fund – 72.515 units (completely sold out of this position)
• Vanguard S&P 500 Index Fund – 46.672 units (completely sold out of this position)
• American Funds Capital World Bond Fund – 51.893 units (completely sold out of this position)
• Vanguard Total Bond Market Index Fund – 117.582 units
• DFA Commodity Strategy Portfolio – 20.289 units
• Vanguard Total International Stock Market Index Fund – 29.017 units

Options Trading

The following options trades were made in the Traditional IRA this week:

Closed Positions

• Schwab U.S. Dividend Equity ETF (SCHD) – bought a closing transaction on a covered call at a strike price of $76.00 with an expiration date of January 20, 2023. The premium received for this trade was -$25.03. This trade was held for about 128 days resulting in a profit of $359.28.

Opened Positions

• Warner Bros. Discovery (WBD) – sold a covered call at a strike price of $13.50 with an expiration date of September 30, 2022. The premium received for this trade was $2.81 after fees.
• Palantir Technologies (PLTR) – sold 2 covered calls at a strike price of $9.50 with an expiration date of October 07, 2022. The premium received for this trade was $3.73 after fees.
• SoFi Technologies Inc. (SOFI) – sold a covered call at a strike price of $7.00 with an expiration date of October 7, 2022. The premium received for this trade was $2.81 after fees.
• Verizon (VZ) – sold a covered call at a strike price of $42.00 with an expiration date of September 30, 2022. The premium received for this trade was $2.81 after fees.
• Scotts Miracle-Gro (SMG) – sold a covered call at a strike price of $60 with an expiration date of October 21, 2022. The premium received for this trade was $39.31 after fees.
• Schwab U.S. Dividend Equity ETF (SCHD) – sold a covered call at a strike price of $77.00 with an expiration date of April 21, 2023. The premium received for this trade was $49.31 after fees.

Expired Positions

• SoFi Technologies Inc. (SOFI) – a covered call at a strike price of $7.00 with an expiration date of September 30, 2022 expired out of the money. I held this trade for about 11 days resulting in a profit of $3.76.
• Verizon (VZ) – a covered call at a strike price of $42.00 with an expiration date of September 30, 2022 expired out of the money. I held this trade for about 5 days resulting in a profit of $2.81.
• Warner Bros. Discovery (WBD) – a covered call at a strike price of $13.50 with an expiration date of September 30, 2022 expired out of the money. I held this trade for about 5 days resulting in a profit of $2.81.
• AT&T Inc. (T) – two covered calls at a strike price of $18.50 with an expiration date of September 30, 2022 expired out of the money. I held this trade for about 12 days resulting in a profit of $3.73.

This week I received a total of $75.75 in options premium.

Account Updates

The Traditional IRA finished the week at about $100,670. As a result, the account value decreased by -$3,976 from the previous week.

The Roth IRA finished the week at about $5,038. As a result, the account value decreased by -$76 from the previous week.

The 401k finished the week at about $12,840. As a result, the account value decreased by -$312 from the previous week.

The taxable brokerage account finished the week at about $381. As a result, the account value decreased by -$5 from the previous week.

The little bit of bitcoin that I own finished the week at about $13. As a result, this increased by $1 from the previous week.

This brings the total amount invested to about $118,942. Week over week, the total amount invested decreased by -$4,368. You can see all of the positions in my portfolio by clicking “Overall Portfolio” in the menu above.

Wrap Up

The combined income from dividends and options premium totaled $268.63 this week. This week was a much better week for producing income from the accounts. Both dividends and options premium were up this week. Focusing on the income my accounts produce has helped me stay motivated to continue investing during this down market. That wraps it up for this week. Thanks for following along!

*Disclaimer – I am not a financial professional. The information shared here should not be considered financial advice. I am just a factory worker sharing my experience as I strive to achieve financial freedom. Before investing or making any financial decision do your own research and due diligence or consider seeking the advice of a financial and/or tax professional.

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