Almost 4 years!
At the moment, we’re stuck at $119,260, which is actually down $661 since our May 5th review and that’s because our hedges got crushed as the market flew higher 10.7% but the good news is the hedges are working – they are simply preventing gains in the same way they were designed to prevent losses!
We are now 47 months away from hitting our $1M target (at this pace), which would be March of 2030 and, since our original goal was to hit $1M in 30 years (8/25/52) – I’m pretty happy with how far ahead of schedule we are!
To be clear to our new Members – this portfolio is on track to turn $119,260 into $1,039,817 in 3.8 years – so you haven’t missed much as we still have $920,557 (771%) left to gain!
This is just the mathematical grind of our “Be the House – NOT the Gambler!” strategy playing out in a small (not so small anymore), no-margin portfolio. For those who are new – here’s me discussing the strategy with Forbes.
Before we get on with the review, however, I want to put in a commercial for yesterday’s Robo John Oliver Report’s Podcast and Video which I strongly encourage you to add to your Social Media – as it’s a very important issue I feel needs to be discussed before it’s gets out of control:
On a connected note: Florida filed a landmark, first-in-the-nation lawsuit against OpenAI and CEO Sam Altman, accusing them of prioritizing commercial growth over user safety. The state alleges that ChatGPT poses severe risks, particularly to children and points to several violent crimes where suspects used the AI to plan attacks.
While I’m sure Google was used to plan all sorts of violence in the past 20 years, what ChatGPT is doing by infiltrating our school systems is far more insidious. It’s like when your parents spend 10 years watching Fox News or CNN or whoever you disagree with – you can’t quite pin WHEN it happens – but you know they’ve been changed!
Anyway, please check it out and PLEASE share – people need to be aware of what’s going on here…
If you are just joining us, we began on Aug 25th, 2022 with $700 and each month we added $700 ($32,200) so far and each month we find things to buy under NO MARGIN rules (for 401K/IRA players). This is, despite the huge gains, a fairly conservative portfolio and we are generally quick to take our profits and run – as we always seem to find new opportunities to make more. In the past year, our 12 prior Portfolio Reviews were:
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- How to Become a Millionaire by Investing $700 per Month – Part 45/360
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How to Become a Millionaire by Investing $700 per Month – Part 44/360
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How to Become a Millionaire by Investing $700 per Month – Part 43/360
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How to Become a Millionaire by Investing $700 per Month – Part 42/360
- How to Become a Millionaire by Investing $700 per Month – Part 41/360
- How to Become a Millionaire by Investing $700 per Month – Part 40/360
- How to Become a Millionaire by Investing $700 per Month – Part 39/360
- How to Become a Millionaire by Investing $700 per Month – Part 38/360
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How to Become a Millionaire by Investing $700 per Month – Part 37/360 – Year 4 Begins!
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How to Become a Millionaire by Investing $700 per Month – Part 36/360 – 3 Years In!
- How to Become a Millionaire by Investing $700 per Month – Part 35/360
- How to Become a Millionaire by Investing $700 per Month – Part 34/360
Now we are all caught up. We have $71,907 in positions and $41,354 in CASH!!! And our SQQQ hedges have been killing us – but they are insuring the rest of the portfolio. Let’s take a look:
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- HELE – Well over our target at net $4,250 with $3,250 (76.4%) left to gain. The problem with performing so well early on is even if HELE holds $20 and we make the next 76.4% – it’s still UNDERPERFOMING compared to our annual 70.5% average returns. That’s why I warned, back in the spring – that our rate of gains would not be sustainable.
- Still, certainly not something we want to throw way – unless we find something MUCH better to do with $4,250.
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- PATH – On track at net $2,160 on the $5,000 spread with $2,840 (131%) of upside potential but will we get there by January? Earnings were messy so we’ll have to keep an eye on them.
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- SQQQ – Not only did our hedge take a severe beating this month but it’s now out of position so we’ll have to spend $5,730 to roll the $50 puts ($11.18) to the $30 puts ($15). The brings our net to $8,430 on what would be a $45,000 spread at $60 (20% Nasdaq drop) so we’ll call it net $36,570 of downside protection.
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- CLF – Way over our target at net $2,550 and now we can roll the 10 short July $10 calls at $4 ($4,000) to 15 short Sept $13 calls at $2.60 ($3,900) for net $100. That leaves 5 short calls uncovered so we’ll buy 5 2028 $12 calls for $5.70 ($2,850) and now our spread is $3,000 + $500 but still 16 months to roll the short calls higher still. Let’s call it $5,000 (90%) upside potential.
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- UNG – Right on the money for the June expiration – we’ll have to check back in in two weeks. We paid net $1,250 for the spread and we’ll sell 2 or 3 more rounds of $500+ premium so we’re on the way to a free trade and /NG should hit $14 by hurricane season is $2,000 of upside potential.
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- B – A little over our target but gold slipped a little and look at that descending top line. I’d rather keep the insurance! The spread is only net $2,882 and we have $6,400 on the $32/40 spreads plus the ability to roll 3 of them higher so AT LEAST $3,518 (122%) upside potential and this one is Good for a New Trade!
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- CAG – The June calls are already worthless and earnings should be around July 1st so let’s give them a chance to bounce (fingers crossed!). It’s a $6,000 spread at net $2,648 and I still think $17 is realist so that’s $3,352 (126%) upside potential.
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- ET – At our goal 18 months early. It’s a $3,000 spread at net $1,772 so $1,228 (69%) upside potential and this seems so certain to me that I’ll call it Good for a New Trade – as you have to weigh in the odds of success too.
IN PROGRESS
