We were over-hedged for the continuing rally.
Despite, however, taking a $6,000 hit on our SQQQ spread as the Nasdaq makes new record highs, our $700/Month Portfolio ground out net $3,004 gain, which is a bit off our normal pace but we are still on track to hit $1M by May of 2029 and the key lesson here is that it’s better to lock in our gains (+$14,615 in the last review) than risk them into uncertainty.
We average $3,417.06/month in gains and it’s important to know these numbers so we recognize how unusual a $14,615 gain is and LOCK IT DOWN before the market corrects. That’s what we spent $6,000 doing in our SQQQ spread, which will snap right back if the market ticks back down.
If it doesn’t – we’ll add more longs and deploy more cash and make it up on the plus side of the portfolio – THAT is the system!
The coolest thing about this portfolio is we aren’t using margin. We started out with $700 and, each month, we put another $700 into the portfolio – which I know seems silly but, if we didn’t keep doing that, our April 2029 total drops to $946,253 so 32 x $700 ($22,400) less contributed leads to $80,948 less money in less than 2.6 years – THAT is the importance of SAVING MONEY!!!
Wow! That video is from 11 years ago and I’m actually starting to look like my aged self – scary – you can see why I went with the beard… Everything I said in 2015 is true now – it’s never too late to start and the original goal of this portfolio was to make just 10-20% a year with no margin. I never expected it to go this well and I’d attribute it to a very strong market and, of course, our AGI Round Table – which is a game-changer for market research.
I’ve always been a great stock-picker and analyst (he said modestly) but now we have an army of researchers backing me up and they were all trained by me to be as good as me – only 1,000 TIMES FASTER! Our Members benefit from their analysis and wisdom every day and the AGI Team is available for hire for Consulting Work – which is building cash flow as they move towards their IPO but you get first crack at it here – while they are still humble.
Meanwhile, here’s our last year of reviews – in case you’d like to catch up:
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- How to Become a Millionaire by Investing $700 per Month – Part 49/360
- How to Become a Millionaire by Investing $700 per Month – Part 48/360
- How to Become a Millionaire by Investing $700 per Month – Part 47/360
- How to Become a Millionaire by Investing $700 per Month – Part 46/360
- 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!
We’re coming into Q3 Earnings Season with $65,361 (38%) in CASH!!! and, as I noted, a very large hedge so we will be looking to spend a bit more money as we are well-protected to the downside. My outlook today is the same as it was last month, when I said:
“Since last month, we’ve raised our CASH!!! position to $40,483 (24%) and we do have a nice hedge (SQQQ) but I’m VERY uncomfortable with the market and expect a 10-20% pullback in the next few months and that would suck – so I’m going to be very conservative in this review but, then again – I often say that but then our positions are so good that I can barely find anything to cut – so let’s see how it goes: “
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- HELE – Although they have pulled back, we’re still deep in the money at net $4,350 on the $7,500 spread so there’s $3,150 (72%) left to gain between now and Jan, 2028. Earnings are tomorrow so – fingers crossed!
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- SOFI – Earnings are on the 27th and we think it should be higher so we’re not covering the 3 open calls. Net $3,074 on the $8,000 spread has a $4,926 (160%) upside potential but it’s a long way to $23 – so we stand ready to adjust if earnings disappoint.
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- SQQQ – It’s a 3x inverse ETF so a 20% drop in the Nasdaq would boost SQQQ 60% from $32.30 to $51.68 so we only count on $21.68 x 30 contracts = $65,040 and the spread is currently $16,950 so our net downside protection is $48,090 – about 40% of our current exposure. The 2028 spread is net $5.65 and we’re going to roll it to 30 2029 $20 calls at $15 and sell 30 2029 $55 calls for $9 – so we’re spending just a little bit to go deeper in the money and adding another year of protection.
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- UNG – Net $1,487 on the $2,500 spread has $1,013 (68%) upside potential if UNG can hold $10 into January. Seems like easy money to me!
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- PR – On track with a nice profit and we’ll roll the short Jan calls along to widen the spread. The 2028 $25s are $3 so it’s at least a $5 ($5,000) spread, currently net $2,650 so we have $2,350 (88%) upside potential and we’re on track.
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- HPQ – We’re over our goal for 2028 already and, if all goes well, we net $11,000 and it’s currently net $7,212 so there’s $3,788 (52%) upside potential but possibly not the best use of $7,212 for 15 months. We’ve got a lot of cash so it’s not an issue at the moment but it’s a big chunk of money so we’ll keep an eye on it.
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- B – This is brand new as we cashed out the old spread. Potentially a $10,000 spread at net $7,600 has $2,400 (31%) upside potential is not terribly sexy but we also sold $2,000 worth of Dec short calls and we have 4 more quarterly sales for $8,000 (105%) in potential premium sales and THAT is sexy indeed!
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- CAG – Right on target at net $2,250 on the $6,000 spread with $3,750 (166%) upside potential PLUS 4 more chances to sell $800 is another $3,200 (142%) in premium potential! This one is good for a new trade!
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- CLF – Net $2,862 on the $2,000 spread (because it’s only half-covered) and the 5 short 2028 $12s can be rolled to 10 2028 $20s so let’s call it a $10,000 spread with $7,138 (249%) upside potential – that one was hiding in plain sight! While we are waiting, the Jan $13 calls are $1.40 so let’s say, if we sold, we could sell $2,800 worth next year for a potential 97% of additional premium sales. We will see how earnings go on the 19th.
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- ET – Net $2,567 on the $4,000 spread has $1,433 (55%) upside potential PLUS 4 more sales of $460 is potentially $1,840 (71%) in premium sales.
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- HPQ – Net $7,192 on the $8,000 spread is NOT worth keeping AND we have 2 HPQs so we’re going to kill this one.
- M – Net $4,314 on the $7,500 spread has $3,186 (73%) upside potential PLUS 4 more sales of $930 gives us another $3,720 (86%) in potential premium sales and we’re right on track! Good for a new trade.
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- NVO – Net $6,030 on the $15,000 spread has $8,970 (148%) upside potential PLUS 4 more sales of $1,000 is another potential $4,000 (66%) in premium sales! So Good for a New Trade AND let’s close out the short Jan $50 calls and sell 5 Jan $40 calls for $2 ($1,000). This is NOT good for a new trade because the $50 target is currently iffy-looking…
- Since we expect to make 66% if NVO stays flat – we can afford to wait for earnings before deciding what to do with the main spread.
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- OWL – Net $2,688 on the $6,000 spread has $3,312 (123%) upside potential and we’ll buy back the short Jan $12 calls ($75) and sell 5 Jan $10 calls for 0.50 ($250 – 9.3%) so we have $1,000 (37%) of 2028 upside premium sales potential as well.
- Earnings are the 29th and we’ll see what they have to say. If they pop – we’ll be happy to buy more longs and, if not – we may give up, finally…
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- PANL – New one! Net $2,212 on the $2,500 spread that’s already in the money with $288 (13%) left to gain if $7.50 holds into February. We also have another chance to sell $240 (11%) in premium and 23% is a nice return for 6 months.
PFE –
IN PROGRESS
