Building a Bitcoin Portfolio: A Journey Through Strategic Accumulation

 Bitcoin, the pioneer of cryptocurrencies, has firmly established itself as a key player in the world of alternative investments. As adoption continues to grow globally, its resilience and scarcity have made it an increasingly popular choice for both seasoned investors and newcomers. Let’s delve into a recent example of strategic Bitcoin accumulation and what it means for long-term growth.

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The Investment Timeline

1. August 27, 2024
The journey began with a purchase of 0.00168448 BTC at $59,364.01, totaling $100.00. This investment came during a period of market consolidation, offering an attractive entry point.

2. November 14, 2024
The next step involved acquiring 0.00114254 BTC at $87,443.93 for $99.91, accompanied by a bonus of 0.00000114 BTC. Despite the higher price, the consistency of investment demonstrates a commitment to dollar-cost averaging (DCA).

3. November 18, 2024
A smaller purchase of 0.00083223 BTC at $92,567.14 for $77.04, with an added bonus of 0.00000083 BTC, shows flexibility and dedication to capturing value over time.

4. November 19, 2024 (Morning)
Two separate purchases were made on this day:

• 0.00267853 BTC at $92,428.19 for $247.58, with a bonus of 0.00000267 BTC.
• 0.01051122 BTC at $94,205.88 for $990.22, with a bonus of 0.00001053 BTC.

These transactions reflect a mix of small and significant investments, capitalizing on Bitcoin's recent momentum.

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The Power of Dollar-Cost Averaging (DCA)

The consistent Bitcoin purchases showcase the effectiveness of dollar-cost averaging, a strategy where fixed dollar amounts are invested periodically, regardless of market conditions. This approach has several advantages:

1. Risk Mitigation: By spreading investments over time, DCA reduces the impact of short-term market volatility.
2. Emotional Discipline: Regular investments prevent impulsive decisions driven by market fluctuations.
3. Portfolio Growth: Over time, this strategy builds a significant position, especially in an asset with long-term appreciation potential.

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Cumulative Impact and Bonuses

In addition to regular purchases, Bitcoin bonuses from specific platforms added extra value to the portfolio. While seemingly small (ranging from 0.00000083 BTC to 0.00001053 BTC), these bonuses compound over time, further enhancing returns.

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Why Bitcoin?

Bitcoin’s appeal lies in its limited supply of 21 million coins, decentralized network, and growing institutional acceptance. As a hedge against inflation and traditional financial systems, it continues to attract attention:

• Scarcity: Similar to gold, Bitcoin's finite nature supports its long-term value proposition.
• Global Adoption: Increased use in remittances, payments, and decentralized finance drives demand.
• Resilience: Despite market corrections, Bitcoin consistently rebounds stronger.

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Looking Ahead

As of now, the portfolio reflects a disciplined and strategic approach to accumulating Bitcoin. While volatility is inevitable, the long-term outlook for Bitcoin remains optimistic, with analysts predicting continued growth as adoption rises.

For investors, this case study underscores the importance of consistency and a focus on the bigger picture. Whether you’re a newcomer or an experienced investor, the key takeaway is clear: Start small, stay consistent, and let the power of time and discipline work in your favor.

What’s your Bitcoin strategy? Share your journey in the comments below!

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Disclaimer: This blog post is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.

Capturing Premiums with a Rolling Options Strategy: A Deep Dive into October-November 2024 Trades

 In October and November 2024, I implemented a rolling options strategy to maximize my income through premium collection while managing potential risks. Below, I’ll walk through each trade, including the rationale behind rolling, capturing premium, and other key insights from this options strategy.

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Trade Summary

Throughout these two months, I executed a series of call and put options on several stocks, notably SMCI, VZ, T, and HOOD. My approach focused on selling options to collect premiums, rolling contracts to adjust risk and capture additional premium, and letting some contracts expire worthless to secure gains. Here’s a detailed breakdown of each trade.

1. SMCI PUT Options: Active Rolling Strategy

The SMCI options played a significant role in this strategy, with a continuous series of puts rolled to optimize outcomes. Here’s a closer look:

• 10/10/2024: Started by selling an SMCI $40 PUT, expiring on 10/25, for a premium of $81. Rolled to a $40.5 PUT expiring 11/1 for more strategic positioning.
• 10/11/2024: Sold SMCI $40.5 PUT (11/1) for $55, then rolled it to a $44 PUT expiring 11/8 for added premium.
• 10/14/2024 - 10/16/2024: Continued with a series of SMCI PUT rolls, ultimately landing at a $46 PUT with expiration extended to 11/29, capturing additional premiums along the way.

Outcome: This series of SMCI PUTs exemplifies the benefits of rolling—capturing incremental premium, extending time frames, and increasing the strike price to align with my market outlook.

2. T and VZ CALL Options: Capitalizing on Premium from Expiration

• T $23 CALL (10/25, 11/8 Expiries): Both of these options expired worthless, allowing me to keep the entire premium.
• VZ Calls: The $46 CALL (10/25) and $42.5 CALL (11/8) also expired worthless, again yielding full premium capture.

Outcome: The T and VZ calls were well-positioned above current market levels, giving a low probability of assignment and allowing me to retain all premiums without needing to roll or close out early.

3. HOOD PUT Options: Selling for Steady Premiums

• 10/29/2024: Sold a HOOD $25 PUT expiring 11/28 for $65, which eventually expired worthless.
• 11/11/2024: Sold a HOOD $31.5 PUT expiring 11/22 for $63. This position was part of a straightforward premium collection strategy.

Outcome: The HOOD PUT options provided consistent premium income without needing to roll. These contracts were placed with comfortable strike prices, leading to expiration without any additional management required.

4. VZ $41 and T $23 CALLS (Expiring 11/15 and 11/22)

• 11/11/2024: Sold a VZ $41 CALL (11/15) for $15 and a T $23 CALL (11/22) for $8, both designed for potential premium capture with minimal risk of being called away.

Outcome: These were smaller plays in the larger strategy, offering steady premium income with low assignment risk.

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Key Takeaways from My October-November Options Strategy

1. Rolling as a Premium-Enhancement Tool: Rolling allowed me to maximize income from the SMCI PUT options. By adjusting strike prices and expiration dates, I could manage risk while enhancing premium collection.

2. Capitalizing on Expiring Options: A significant portion of these options expired worthless, which is ideal in an options-selling strategy. The T, VZ, and HOOD options were positioned carefully to expire out-of-the-money, enabling me to keep 100% of the premium.

3. Managing Risk with Strategic Strike Adjustments: With some positions, I gradually increased the strike price, especially with SMCI. This maneuver allowed me to remain in the trade for longer, capture more premium, and maintain a favorable risk profile.

4. Consistent Premium Income: This strategy generated consistent cash flow, contributing to the overall growth of my portfolio. The cumulative premiums from these options reinforced the value of a disciplined selling and rolling strategy.

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Final Thoughts

The October-November period demonstrated how a structured options-selling strategy can yield steady returns, even with volatile underlying assets. By strategically rolling SMCI PUTs and allowing other options to expire worthless, I maximized my income and managed downside risks effectively.

If you’re exploring options selling, consider incorporating rolling and expiring strategies like these to capture premiums consistently. Remember, always assess the risk tolerance, monitor market movements, and adjust positions as necessary to optimize your portfolio.

October 2024 Dividends Report

 October has become an exciting month for dividend investors, as it reflects significant growth and shifts in various dividend-paying stocks. I received $911 in dividends for the month of October.

1. Standout Growth Stocks

• FXAIX: A powerhouse in this list, FXAIX has achieved an impressive increase in dividend payouts, climbing from 82.27 in 2020 to 149.68 by 2024. This 32.25-point gain highlights the fund's resilience and reliability as a dividend option for those focused on steady returns. The growth reflects both robust stock market performance and FXAIX's diversified approach. I have been adding FXAIX in my Roth IRA

• DOX: A new entrant to the list in 2024, DOX reported a massive 91.71 dividend, This was due to accumulating  good amount of shares.

• Dollar General (DG): DG has grown substantially, starting at 3.6 in 2020 and reaching 27.09 in 2024. The 11.67-point gain is due me adding DG through DCA.

3. Closed Position

• LADR (Ladder Capital): I closed the position.

Stock Symbol	2020	2021	2022	2023	2024	Difference
MO	20.64	25.46	29.52	40.83	46.46	5.63
ITW	7.21	12.21	16.99	18.58	20.37	1.79
STWD	25.32	26.94	29.16	32.15	35.42	3.27
DG	3.6	5.04	11.1	15.42	27.09	11.67
CSCO	9.72	10.96	12.14	12.86	13.62	0.76
FXAIX	82.27	96.49	107.91	117.43	149.68	32.25
IRM	5.74	6.26	6.58	7.26	8.28	1.02
MO	7.99	9.29	10.45	11.82	13.45	1.63
AGNC	6.17	6.4	7.54	8.7341	10.16	1.4258
STWD	56.64	57.69	62.4	68.975	75.91	6.935
CINF	33.28	35.83	40.1	44.8025	49.74	4.9375
NLY	12	12.32	13.2	11.2975	13	1.7025
JPM	0	11.13	11.46	12.3825	15.12	2.7375
KO	9.17	9.96	10.74	12.03	13.1	1.07
MO	23.4	28.19	31.68	36.83	42.99	6.16
VTR	15.15	15.27	15.75	16.44	17.09	0.65
LADR	4.47	4.75	6.31	6.9	0	-6.9
O	6.23	6.39	7.52	8.41	11.3	2.89
CSCO	21.55	22.422	24.52	26.48	28.75	2.27
BNS	39.19	42.952	46.77	49.88	50.19	0.31
WDS	0	0	27.25	20	17.25	-2.75
DOX	0	0	0	0	91.71	91.71
BBL					111	111
Fundrise	26.73	42.53	34.53	54.28	49.56	-4.72
	416.47	488.48	563.62	633.79	911.24	277.44

Summary

• Overall Dividend Growth: $277.45
• Percentage Increase: 43.77%

This growth reflects significant increases in dividends across the portfolio from 2023 to 2024, highlighting a strong year for these investments.

2024 Dividend Goal:

With a YTD dividend of $14,417.48 and a goal of $19,500, I am  currently at 73.94% of your target for 2024. To reach the goal, an additional $5,082.52 in dividends is needed by year-end.

Options Update on SMCI,T(ATT),VZ

 In October, I actively pursued income from covered calls and cash-secured puts on AT&T, Verizon, and Super Micro Computer (SMCI). Here’s a breakdown of each trade and the income strategy behind them.

AT&T (T) $23 Call – Expired Worthless

• Trade Date: 10/16/2024
• Premium Collected: $9
• Outcome: Expired worthless on 10/25/2024

With AT&T, I collected a small premium at a strike price above the stock’s near-term range. This call expired worthless, allowing me to capture the full premium. Selling calls on stable stocks like AT&T provides reliable income with manageable risk.

Verizon (VZ) $42.50 Call – Expiring 11/08/2024

• Trade Date: 10/28/2024
• Premium Collected: $24

This call is still open and offers additional premium income if Verizon remains below the strike price. I’ll be monitoring it closely as expiration nears.

Verizon (VZ) $46.00 Call – Expired Worthless

• Trade Date: 10/18/2024
• Premium Collected: $14
• Outcome: Expired worthless on 10/25/2024

The $46.00 Call expired worthless, enabling me to keep the full premium. Like AT&T, this added premium without the need to sell the underlying shares, keeping my cash flow steady.

Super Micro Computer (SMCI) $46.00 PUT – Rolled from $45 PUT

• Trade Date: 10/24/2024
• Premium Collected: $80
• Notes: Rolled from an initial $45 PUT expiring 11/22/2024

I rolled this SMCI PUT to a higher strike, gaining more premium and pushing out expiration. This helps manage risk and lets me potentially buy shares at a discount, should SMCI’s price fall.

October OPTIONS

Date	Call	Option Premium	Notes
10/10/2024	Sell SMCI $40 PUT 10/25	81
10/11/2024	Sell SMCI $40.5 PUT 11/1	55	rolled Sell SMCI $40.5 PUT 11/1
10/14/2024	Sell SMCI $44 PUT 11/8	188	rolled Sell SMCI $40.5 PUT 11/1
10/15/2024	Sell SMCI $44 PUT 11/15	35	rolled Sell SMCI $44 PUT 11/8
10/16/2024	Sell SMCI $45 PUT 11/22	76	rolled Sell SMCI $44 PUT 11/15
10/16/2024	Sell T $23 Call 10/25	9	Expired Worthless and captured Premium
10/28/2024	Sell VZ $42.50 Call 11/08	24
10/18/2024	Sell VX $46.00 Call 10/25	14	Expired Worthless and captured Premium
10/24/2024	Sell SMCI $46.00 put 11/29	80	Rolled Sell SMCI $45 PUT 11/22

Takeaway: Consistent Income Through Options

In total, these trades brought in $127 in premiums, supporting my income-focused strategy. With careful management, including rolling the SMCI PUT, I’ve been able to balance risk with regular cash flow.

This steady income strategy complements my broader portfolio by adding premium income alongside dividend growth. Looking forward, I’ll continue evaluating these positions and reinvesting where I see potential.

SMCI Options

 

SMCI Options: A Strategy Breakdown

Options trading can be a powerful tool for investors looking to enhance portfolio returns and manage risk. Recently, I implemented a strategy by selling PUT options on Super Micro Computer, Inc. (SMCI). In this post, I’ll walk through the rationale behind the trades, the potential outcomes, and how this strategy fits into a broader investment approach.

The Trades:

• 10/10/2024: Sold SMCI $40 PUT expiring on 10/25/2024 for a premium of $81.
• 10/11/2024: Sold SMCI $40.5 PUT expiring on 11/01/2024 for a premium of $55.

Both trades involve collecting premium income while managing the risk of potentially acquiring shares of SMCI at prices lower than their current market value.

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Why SMCI?

SMCI, or Super Micro Computer, Inc., is a company on the cutting edge of high-performance computing and server solutions, benefiting from major tech trends like AI, cloud computing, and data center growth. In 2023 and 2024, SMCI has seen a significant boost in stock price, driven by the strong demand for computing infrastructure in AI development.

Given the volatility and recent upward movement in the tech sector, SMCI presents a prime opportunity for selling options, particularly PUTs. Here’s why:

1. High Volatility: Higher volatility in stocks leads to higher option premiums, which translates into more income for PUT sellers.
2. Growth Potential: If I end up being assigned shares at my strike price, I could own SMCI at a discount to current levels, which is attractive considering the company’s long-term growth potential in AI and data infrastructure.

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Understanding the PUT Options Strategy

What’s a PUT Option?

When selling a PUT option, I’m agreeing to potentially buy 100 shares of the underlying stock (SMCI in this case) at a specific price (the strike price) if the stock falls below that price by the expiration date. In return, I collect a premium upfront, which is my income regardless of the outcome.

Breakdown of My Trades:

1. SMCI $40 PUT, expiring 10/25/2024

   • Premium Collected: $81
   • Breakeven Price: $40 (strike price) - $0.81 (premium) = $39.19
   • Outcome: If SMCI stays above $40 by 10/25, I keep the $81, and the option expires worthless. If it falls below $40, I’m obligated to buy 100 shares of SMCI at an effective price of $39.19.

2. SMCI $40.5 PUT, expiring 11/01/2024

   • Premium Collected: $55
   • Breakeven Price: $40.50 (strike price) - $0.55 (premium) = $39.95
   • Outcome: If SMCI stays above $40.50 by 11/01, I keep the $55. If it drops below $40.50, I buy 100 shares at an effective price of $39.95.

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Potential Scenarios and Outcomes

1. Scenario 1: Both PUTs Expire Worthless
   In the ideal scenario, SMCI’s stock price stays above $40 and $40.50, and neither PUT is exercised. This means:

   • I keep the total premium of $136 ($81 + $55) as profit.
   • I don’t have to buy any shares, leaving my cash available for future trades.

2. Scenario 2: One or Both PUTs Are Assigned
   If SMCI’s stock falls below $40 or $40.50, I’m obligated to buy 100 shares per contract at the strike prices. Here’s the math:

   • For the $40 PUT, my effective purchase price would be $39.19.
   • For the $40.50 PUT, my effective purchase price would be $39.95.

   These prices could represent an attractive entry point into SMCI if I believe in the company’s long-term growth prospects, particularly with its positioning in AI and data center markets.

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Strategic Fit: Income Generation and Risk Management

Selling PUT options like these can be a great way to generate additional income, especially when the stock in question is one I wouldn’t mind owning at a lower price. Here’s how this strategy fits into my broader investment approach:

• Income Generation: The premiums collected act as an income boost, which complements the dividend income from my broader portfolio. In this case, $136 in premium over two trades.
• Risk Management: By selling PUTs, I only buy the stock at prices I’m comfortable with. The breakeven prices of $39.19 and $39.95 are attractive compared to the current market price of SMCI, and I believe the company has strong long-term growth potential.
• Flexibility: If the PUT options expire worthless, I can always re-assess and potentially sell more PUTs or consider a different strategy, like selling CALLs if I own the stock.

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Final Thoughts: Maximizing Returns While Managing Risk

The beauty of selling PUT options lies in the flexibility and income generation it provides. If the stock never dips below the strike price, I keep the premiums without ever needing to buy the shares. If it does, I acquire SMCI at prices I’ve deemed favorable, which could lead to additional gains if the stock appreciates in value over time.

With the rapid advancement of AI and SMCI’s pivotal role in providing the infrastructure to support this revolution, I’m confident that owning shares at an effective price around $40 would be a solid long-term investment. But for now, I’ll monitor the stock and enjoy the premiums as I continue exploring options strategies to complement my portfolio.

Let me know your thoughts and how you’re using options in your strategy!

September 2024 Dividend Analysis: A Solid Performance Across the Board

 September 2024 marked another strong month for my portfolio, showcasing the power of strategic investments and consistent dividend growth

1. Impressive Total Dividends in September 2024

• Total dividends in September 2024: $3,032.04

Crossing the $3,000 threshold for the month is a significant achievement! It reflects the ongoing success of  investments and the strength of the companies in my  portfolio. The continued growth demonstrates  long-term strategy is paying off, leading to meaningful passive income.

2. Standout Performers

Certain stocks stood out this month, contributing heavily to the total dividends:

• Broadcom (AVGO): The tech giant led the charge with a whopping $115.73 in dividends. Broadcom has consistently rewarded investors with its strong growth, and this year is no exception, showing that high-tech can be both growth- and dividend-oriented.

• Discover Financial Services (DFS): DFS delivered an impressive $158.73, showing its strength in financial services. The stock’s consistent growth in dividends highlights its resilience even amid economic uncertainty.

• Lockheed Martin (LMT): Contributing $121.45, LMT continues to be a key player in my portfolio. Defense and aerospace remain robust sectors, and Lockheed Martin’s payout is a testament to this.

3. Consistent Performers Across Sectors

The diversity of  portfolio ensures stability. Several key names contributed strong, stable payouts, reflecting both defensive and growth-oriented strategies:

• Johnson & Johnson (JNJ): JNJ continues to deliver solid returns with $69.45. Its reliability in healthcare has been a bedrock for consistent dividends.

• PepsiCo (PEP): PEP’s $21.41 payout aligns with its historical growth pattern. This consumer giant is known for rewarding shareholders, making it a reliable part of  income stream.

• The Southern Company (SO): With $30.57 in dividends, SO has continued to shine as a steady performer in the utility sector, providing essential services that remain in demand.

4. Challenges and Changes

While the overall portfolio performed well, a few companies faced challenges:

• 3M (MMM): Dividends from 3M saw a sharp decline, dropping to $44.58 from its 2023 highs. This change reflects underlying issues within the company, likely due to restructuring .

• BHP Group (BBL): This year, BHP’s dividends moved to October, impacting the September total. This is a scheduling issue.

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5. Key Takeaways for September 2024

• Crossing $3,000: Achieving more than $3,000 in a single month’s dividends is a huge milestone, showing that my portfolio is maturing into a powerful income generator.

• Broad Strength Across Sectors: With tech (AVGO), financials (DFS), defense (LMT), healthcare (JNJ), and utilities (SO) all contributing meaningfully,  portfolio is well-diversified and balanced.

• Sustaining Long-Term Growth: Despite some challenges, the overall trend remains positive. The diversification of  portfolio continues to serve well and  providing both growth and stability.

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Conclusion: Stay the Course for Continued Success

September 2024 dividends showcase the power of persistence and strategic investment. With more than $3,000 in payouts, we are seeing the fruits of compounding and long term investing. 

Dividend Income Update: Shell & Barclays (BCS)

Investing in dividend-paying stocks continues to be a cornerstone of my financial strategy. This week, I received dividends from two well-established companies: Shell and Barclays (BCS). Here’s a breakdown and some insights into what this means for my portfolio and future growth.

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Dividends Received This Week:

• Shell (SHEL): $46.24
  Shell, a global leader in energy, continues to be a reliable source of dividend income. The company's strong commitment to shareholders is evident in its consistent payouts, and this week I added $46.24 from my Shell holdings. Shell has maintained solid earnings, even during market volatility, making it a core position in my portfolio.

• Barclays (BCS): $18.35
  Barclays, one of the UK's largest financial institutions, deposited $18.35 into my account this week. Though smaller than my Shell dividend, it’s a testament to the power of diversification. Having financial sector exposure through a global player like Barclays helps cushion my portfolio against sector-specific risks.