Hello traders, January is finally over and before stepping in February, let’s have a quick recap of happenings at the stock market back in January.

The last January, we did a total of 57 trades / from which most were covered calls, credit spreads, a few puts, and a lot of trade adjustments from the previous months.

Despite a market selloff and a few bad trades we managed to take $401 options income during the month of January, which is well above what we excepted ($200)

Market Sentiment

Last January SPX500 dropped by -5.86%, Dow Jones -3.97%, and Nasdaq Index by -10.06%. At the lowest, our stock portfolio was down by some 25%. If there is a lesson to learn - stay away from sh*t stocks and avoid too many put options.

As most of our long-term holdings are stocks from the DOW Jones list, they were doing quite well during the month of January, but not enough to avoid margin calls.

Because of the market selloff my Interactive Brokers account faced liquidity issues and margin calls, I sold some of the stock to avoid forced liquidation and closed some positions with a loss to free up margin.

Options Income

Despite the market selloff, we were able to take a $401 options premium, which is about a 1.85% monthly yield, if calculated against the stock portfolio.

Anything above 1% monthly and I’m a happy hippo.

Dividend income

Our dividend income portfolio’s value now is $21,719 (-$6,476), and it generates about $61.76 (-$16.2) in monthly dividend income. The current annual yield is about 3.41%

Here are all of our holdings (as of January 31, 2022)

To avoid liquidity issues, we sold off Apple, Bank of America, ARCC, and some PFE, WBA, and DOW stock.

Trading plan for February 2022 (Option trades & Stock Buys)

I’m looking to keep decreasing my negative cash balance and currently, I won’t buy the new stock until the cash balance will be brought back to positive,

From covered calls/credit spreads - we are looking to take ~ $300 during the month of February.

Subscriptions

At the end of January, we had

• 115 email subscribers (+1) for Covered Calls with Reinis Fischer newsletter

• 6 paying subscribers (0) (for as low as $9/mo subscribers get access to extra content 1-2 per week)

• 60 subscribers (0) for the YouTube channel.

• 90 subscribers (+2) to the Instagram

How was your month? Hit the reply button or leave a comment on the website!