Equity-Pulse

Equity-Pulse

Your Weekly Dividend & Options Playbook

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Equity-Pulse content is for informational purposes only and not financial advice. Investments carry risk, including loss of principal. Always do your own research and consult a professional before acting.

  • Month 3 Snapshot: Expansion

    Month 3 Snapshot: Expansion

    Foreword

    In December we shifted to expansion mode. Not only were we continuing to build our CONY stake, we were also building our YMAX and MSTY positions. Despite a modest end of year pullback, our income strategies continue pulling through, laying the groundwork for January.

    Month 3 Objective Review

    • Deploy $7,000 across core ETFs
      • $7,162.17 deployed (~102% of Target)
    • Income target of $200 in dividends and option premiums
      • Combined net dividend and option premium Income of $192.69 (~96% of Target)
    • Maintain 10 – 12 % of portfolio in cash for assignments, and tactical dip buys.
      • $887.44 in cash at month end (~6% of portfolio)

    We marginally overshot our ETF buys and nearly hit our income target. Our cash runway however is thinner than ideal for assignments or opportunistic buys.

    Deposits

    • Total Cash Deposit – $5,880.97

    Market Update

    • The S&P 500 fell -2.6% in Dec 2024, weighted down by year-end-tax-loss selling and profit taking.
    • Federal Reserve held rates at 4.50 – 4.75% signaling a pause after November cut.
    • BTC closed at $93,429 down -3.1% reversing part of November’s rally.
    • The CBOE Volatility Index closed at 17.35, the second highest monthly finish of 2024.
    • Year-End fund balancing and holiday thinned liquidity which amplified swings.

    A modest pullback tested NAV resiliency, but the dip created entry points for our income ETFs. Elevated volatility, especially in crypto, continued to support option premiums on MSTY. Meanwhile, Federal Reserve pause conditions sustained dividend sensitive ETFs like CONY and YMAX.

    Portfolio Snapshot (31 Dec 2024)

    This was a capital deployment month, reallocating from cash and under-performing equities into high yield ETFs. The cash buffer is now lean, signaling limited room for new positions unless more capital is injected. Nonetheless, the strong revaluation of core assets highlights the effectiveness of the income driven shift.

    Key Transactions

    In December 2024, the portfolio underwent a significant repositioning towards income generating assets. A new 100 share position in YMAX was established early in the month, anchoring weekly yield generation. Similarly, the CONY position was expanded aggressively through 4 separate purchases totaling 300 additional shares. A small stake in MSTY (25 shares) was also initiated, signaling the beginning of exposure to Bitcoin linked dividend plays. To fund these moves, a partial equity exit was made on 20 Dec 2025 this shift resulted in a shrinking of the equity size by $439.22 and capturing profits from existing holdings. In total, over $7,100 was deployed to strengthen the core income engine of the portfolio, with the goal of consistent cash flow heading into the new year.

    Lessons Learned

    • Rapid accumulation of income positions proved effective, but it came at the cost of liquidity. The cash buffer fell from 12% to 7.2%, highlighting the need to preserve for opportunistic trades or option assignments.
    • A 12.4% drop in Core NAV masked the positive impact of income strategies. Despite generating a 2.2% yield from dividends and option premiums, the overall portfolio declined. This once again reminds us the importance of tracking total returns
    • December’s erratic flows created sharp swings, but also opened attractive entry windows. Bulk buying earlier in the month may offer better fills before illiquidity and tax related selling pressures distort prices.

    Core Income Position Total Return Analysis

    The core portfolio ended the month with a total unrealized loss of $1,074.65, down 12.4% from the original cost. All 3 holdings were in the red, with CONY showing the largest dollar drop. Despite the price declines, the portfolio generated $192.69 in dividends, led by CONY and YMAX resulting in a modest 2.2% income yield. MSTY being a new addition, has yet to contribute any income. Overall, while capital values fell, the income stream has started to take shape.

    Month 4 Objectives

    • Deploy $3,000 across core ETFs
    • Income target of $400 in dividends and option premiums
    • Maintain 10 – 12 % of portfolio in cash for assignments, and tactical dip buys.

    What is your playbook for balancing expansion and liquidity in choppy markets? Share your insights or questions in the comments below.

  • Month 2 Snapshot: Growth

    Month 2 Snapshot: Growth

    Foreword

    November proved a pivotal month as two forces converged. The Federal Reserves 25bp rate cut lifted NAVs across our Income ETFs, while Bitcoin’s 37% surge reignited crypto-linked volatility premiums. By maintaining a lean cash buffer, we executed a dividend capture on CONY, driving a robust 24.6% NAV increase and unlocking option income opportunities.

    Month 2 Objective Review

    • Deploy $1,500 into CONY for $100 / month in dividends (~6%)
      • $625.31 deployed (~42% of Target)
      • Net Dividend $84.97 (~85% of Target)
      • High capture efficiency, but under-deployment of capital.
    • Maintain a cash buffer to manage option assignments and buy on dips
      • $1,020.92 in cash at month end (~10.8% of portfolio)

    Deposits

    • Total Cash Deposit – $1209.01

    Market Update

    • The S&P 500 gained 5.7% in Nov 2024, the strongest month of 2024. Consumer discretionary stocks which include companies like Amazon and Tesla recorded the highest gains at 13.2%.
    • Federal Reserve cut interest rates by 25 basis points (25bp) which signaled a data driven easing path ahead.
    • BTC closed at $96,449 up 37.4% for the month as crypto markets regain momentum.
    • The CBOE Volatility Index fell to 13.51 down from October’s post-election spike.
    • US election outcomes drove a late month relief rally, easing volatility across the board.

    These moves set up an ideal environment for income-focused strategies. Equity rallies and rate cuts lifted ETF NAVs, bolstering unrealized gains. The Bitcoin surge, in particular, enhanced the appeal of crypto-linked funds, offering richer premium opportunities. In the meantime, Federal reserve easing supported dividend sensitive ETFs.

    Portfolio Snapshot (30 Nov 2024)

    Excluding the new deposits, the portfolio grew from $7,597.26 to $8,259.07 (+8.7%) in November driven by the addition of CONY shares and a modest gain in my other equities. When including the $1,209.01 of fresh capital, the total rose to $9,468.08.

    Key Transactions

    In November, all active trading was focused on CONY, with a two step dividend capture. By buying ahead of the ex-dividend date and selling into the pop, we realized approximately $351.26 of pure capital gain on 100 shares, plus $84.97 in net dividends for combined total of $436.23 of income on just $600.33 of new deployment. This translates to a ROI of 73% on fresh capital after fees. We immediately redeployed proceeds to maintain our 100 share core stake.

    A cash secured put on CONY added $69.99 of premium and a covered call on TIGR (Captured under Other Equities) added $30.85 of premium, underscoring that while satellite trades can bolster returns, our core ETF strategies drive the bulk of income generation.

    Lessons Learned

    • Balance deployment and buffer: Adjusted to reduce sidelined capital (~12% Cash Buffer)
    • Under-deployed capital: Funding only 42% of our CONY target left yield on the table. To scale allocations next month to meet income goals.
    • High dividend capture efficiency: A 73% ROI on $600 capital investment shows that precision trades can dramatically amplify income,

    Core Income Position Total Return Analysis

    Our November performance has shown that precision in core income strategies drives the bulk of the yield. By focusing on CONY dividend captures and maintaining a disciplined cash buffer, we achieved a 73% ROI on fresh capital and locked in a significant NAV gain across the portfolio. As we head into December, we will scale those core positions, and continue to optimize for cash-on-cash returns.

    Month 3 Objectives

    • Deploy $7,000 across core ETFs
    • Income target of $200 in dividends and option premiums
    • Maintain 10 – 12 % of portfolio in cash for assignments, and tactical dip buys.

    What dividend capture or option strategy have you found most effective? Share your insights or questions in the comments below.

  • Month 1 Snapshot: Beginnings

    Month 1 Snapshot: Beginnings

    Foreword

    In October 2024, I deposited another $378 to add to my starting capital. I then deployed 60% into CONY to kick-start income generation. This post shows my initial core allocation, lessons learnt, and the plan for November.

    Objectives for November

    • Deploy $1,500 into monthly paying High Yield Income Funds (CONY) to generate $100 / month in dividends (~6%)
    • Maintain a cash buffer to manage option assignments and buy on dips

    Market Update

    • The S&P 500 fell 0.9% in Oct 2024, reversing a modest rally as tech and growth stocks sold off late in the month and seasonal weakness set in.
    • October’s Federal Reserve minutes showed a substantial majority of officials supported September’s half-point rate cut, but declined to commit to a pace or timing of future moves.
    • BTC closed at $70,215.19 on Oct 31, up 10.9% for the month due to renewed retail interest.
    • The CBOE Volatility Index climbed 23.16 as traders hedged against year-end risks.

    Together, these developments underscore a complex backdrop for income‐focused investors. The late-month S&P pullback and higher VIX signal elevated equity volatility, which can widen option premiums but also pressure NAVs. The Federal Reserves “patient” stance on further rate moves supports yield-sensitive ETF, yet without a clear cut path, income assets may see choppy trading. Meanwhile, Bitcoin’s 10.9% rally decouples crypto from equities, highlighting that CONY (with crypto‐exchange exposure) requires monitoring of both equity and crypto markets when sizing positions or hedging.

    Portfolio Snapshot (31 Oct 2024)

    Excluding the new deposits, the portfolio grew from $7,080.24 to $7,219.26 (+2.0%) in October driven by the addition of CONY shares and a modest gain in my other equities. When including the $378 of fresh capital, the total rose to $7,597.26.

    Key Transactions

    In late October, i added 60 shares of CONY in 2 tranches targetting a 7% yield, not expecting the later $12.41 low. These purchases increased my CONY position, boosting my expected monthly dividend income by $66 (Pre-Withholding tax), while still leaving room in the cash buffer for more purchases.

    Lessons Learned

    • Balance deployment and buffer: A 60 / 40 split between invested capital and cash ensures both growth and flexibility
    • Staggered Buys Matter: While averaging into CONY at $14 to $14.50 helped smooth out cost basis, the month-end dip to $12.41 (-11.6% of our first tranche) underscores the important of breaking large purchases into smaller, evenly spaced entries to avoid overexposure at high prices.
    • Distribution Irrelevance to Total Return: A high distribution rate can mask underlying NAV decline. Focus on Total Returns (NAV change + distributions) rather than just the yield percentage. Otherwise, you might end up with negative real growth despite large periodic payouts.

    Core Income Position Total Return Analysis

    CONY’s NAV is down 13% to $12.41. With no dividends or premium yet collected, this results in a -13% total return to date.

    Given CONY’s crypto link, which hedging strategies would you use on a similar fund?

  • Month 0 Snapshot: Foundations

    Month 0 Snapshot: Foundations

    Foreword:

    I began actively growing this US Equity-Income portfolio in October 2024 with just a few thousand dollars. I had a simple plan: To build a reliable stream of dividends and option premiums. My goal was also to chase capital growth. 25 weeks later, I am sharing every position, every trade, and every lesson I have learned. This lets you follow along and see how small consistent action can compound into meaningful income.

    In this post, you will see my starting cash allocation. You will also see my initial objectives. I will outline the exact steps I will take in October to kick-start generation.

    Starting Capital and Objectives

    I experimented with various meme stocks in late 2024. I’ve refocused this series on high-yield dividend ETFs, and covered-call/put strategies. The equities listed below consists of those early, non-core trades.

    Objectives for Month 1 (Oct 2024)

    1. Deploy 60% Cash Balance into monthly paying High Yield Income Funds (CONY) to generate $100 / month in dividends (~6%), while maintaining a 40% Cash buffer.
    2. Maintain a cash buffer to manage option assignments and buy on dips
    3. Introduce option overlays with covered calls once positions are established.
    4. Track performance of dividends, options premiums and unrealized P&L.

    Next Steps

    • ✅ Buy Initial positions
    • 🖊 ️Record transactions
    • 🔄 Review cash buffer and evaluate portfolio

  • Equity-Pulse: Your Guide to Dividend & Options Income

    Equity-Pulse: Your Guide to Dividend & Options Income

    I’m thrilled to launch Equity-Pulse, a space dedicated to tracking and optimizing my U.S. equities income portfolio. Here you’ll find:

    • Weekly Market Recaps: Headlines affecting stocks, interest rates, and geopolitical developments.
    • Portfolio Snapshots: A transparent look at positions, P&L, dividends, and options income.
    • Actionable Strategies: How I deploy and rotate capital, manage options, and reinvest payouts.
    • Data-Driven Insights: Charts, tables, and analysis to help you follow along and adapt tactics to your own portfolio.

    About Me

    I’m a Singapore-based passionate investor focused on generating steady income from U.S. equities—particularly Exchange Traded Funds (ETFs), dividend stocks, and option strategies. My goal with Equity-Pulse is to share:

    • What I hold and why
    • How I manage risk and capture premiums
    • Where today’s market environment offers the best income opportunities

    What to Expect

    1. Weekly “Snapshot” Posts every Friday
      • Market Updates: News that matters
      • Portfolio Changes: Trades executed, positions opened/closed
      • Income Recap: Dividends collected, options premiums realized.
      • Performance Metrics: Realized vs. unrealized P&L, yields, and key ratios.
      • Next Steps: Strategy for the coming week, option roll targets.
    2. Community Q&A:
      • I will answer reader questions in dedicated posts of comments.
      • Polls on which tickers or strategies to analyze next

    Let’s Get Started

    Stay tuned for the Week 25 Snapshot, dropping this Friday. In it, I will showcase where I am. I will also share what I have done and what I will do moving forward.

    🔔 Subscribe to get updates in your inbox

    💬 Drop a comment below. What income strategies are you most curious about?

    👍 Share this post if you know someone who loves dividend and options income

    Here’s to compounding income and navigating the U.S. equity markets together!

  • Disclaimer

    Disclaimer

    The information provided on Equity-Pulse is for educational and informational purposes only and should not be construed as financial, investment, tax, or legal advice. The funds, ETFs, and strategies discussed reflect my personal views and risk tolerance and may not be suitable for your individual circumstances. Past performance is not indicative of future results. Always conduct your own due diligence and consult a qualified financial advisor or tax professional before making any investment decisions. Investing involves risk, including the possible loss of principal. Equity-Pulse is not responsible for any gains or losses that may result from your investment choices.