Month in Review – May 2018

That was quick.

Feels like not that long ago I was summarizing April’s results, and here we are another month in. Where does the time go?

This bout of volatility that started in February hasn’t completely subsided, but it does feel as though things have quieted down a little bit doesn’t it?

Don’t worry. Soon we will find ourselves in the summer doldrums and wall street will put its portfolios on autopilot and head for the Hamptons. Hopefully we will get some warm weather algo carnage soon enough.

But until then, let’s have a look-see at what May brought in.

Portfolio Summary


End of May 2018

End of April 2018

Total Invested



Market Value of Total Invested



Allocation % – Equity



Allocation % – Bonds



Allocation % – “Other”



Allocation % – Cash



Income Assets – Invested



Income Assets – Market Value



Projected Annual Income



Invested Yield



Market Yield



Stock Purchases

2 stocks purchased. Both represent additions to existing positions; projected annual income is increased by approximately $360 based on the current annual dividend distributions.

05/01/18 – VCF: 117.05 shares purchased @ $14.20/share. I’m continuing to build a position in this muni-bond closed end fund in our taxable account.

I have the sharebuilder auto-invest feature set up to buy $1,666 worth of shares once per month. The account is funded with 4 more months worth of cash for these auto-investments, so this will continue to show up here for a while.

I’m dollar cost averaging into the position because I expect negative pricing pressure on bonds this year as rates rise and inflation picks up.

Since the dividends are set to be automatically reinvested, I don’t count this investment towards my total projected investment income.

05/25/18 – JNJ: 100 shares purchased @ $122/share. This was the result of a put option that was assigned to me.

File this one under “don’t forget to pay attention to the ex-dividend date when selling options.”

The contract expired on Friday 5/25, which was also JNJ’s ex-div. The contract was right at the money on 5/24, and then the share price adjusted for the amount of the dividend ($0.90/share) which put it in the money on expiry.

I probably could have rolled the position down and out, but I didn’t. I’m pretty happy to take the shares, although I’m going to have to wait another 3 months before the next dividend. Oh well.

Projected investment income is increased by $360 based on the newly increased annual dividend of $3.60/share.

Choose the Form of the Destructor

I mentioned last month that I might kill this section at some undefined time in the future. Well the time is meow.

I tried to buy some UVXY LEAPS puts last month and Interactive Brokers wouldn’t let me, because it’s some kind of special MLP that isn’t allowed in retirement accounts.

If I were so inclined, I could continue the trade in a taxable account, but I’m not really interested in that. For one thing, I’m not so sure the trade makes sense anymore now that the leverage of the fund has been reduced, and for another I don’t really want to have to pay taxes on my gains.

Thus ends the great Catfishwizard short UVXY experiment.

All UVXY put trades are documented in the “UVXY” tab of the Dividend Income Tracker, where they will remain for posterity.

Between September of 2016 and January of 2018, I made a total of 20 trades, which netted $1,083.73 in profit. The trades averaged an 84.1% annualized return.

For the uninitiated, I was shorting UVXY because it was the worst ETF ever. They lowered the leverage ratio from 2.0X to 1.5X so it is slightly less awful now.

I think it probably still deserves to be shorted, but I was using long put positions so I could avoid the use of margin and do the trades in tax-advantaged accounts.

So that’s the end of that.

Pay Days

Dividend Income Tracker is published here at the mothership and has been updated.

Total investment income of $1,128.41 with a taxable total of $31.57. We’ll call it 11 “pay days” with 32 individual payments received.

Options premiums represent $513.72 of that total.

Capital gains made up $0.00.

Which leaves $583.12 of actual bona fide dividends (plus $31.57 of interest from P2P lending).

Lending Club

Lending club income is aggregated into a single income record for simplicity’s sake. It actually arrives as a lot of small payments over the course of the month.

No loans got charged off this month. Yay!

It would appear that nothing revived to “current” and we added several new bad actors. Last month we were only showing 5 troublesome notes. Now we’re up to 9. That is generally not bueno.

The number of bad (charged off) loans we’ve invested in so far remains for now at 14 out of 234 or 5.98%.

Oh well.


In Grace Period

Late (16 -30 days)

Late (31 – 120 days)

Charged Off (aggregate)

End of 2017





January 2018





February 2018





March 2018





April 2018





May 2018





I’m glad I started tracking this stuff last year. It should be fun to continue to follow it through 2018.

Lending club’s algorithm is suggesting I should write down $99.67 worth of principal for the nine loans that are late, but as the eternal optimist, I’m going to continue to wait until the loans are actually charged off to recognize the loss.

That is up significantly from what it suggested last month ($64.05), which makes sense since the number of notes in question nearly doubled.

I continue to lose interest in my distressed debt experiment which involves buying late notes on the secondary market at a discount. I feel like I have a good set of rules to follow to pick out decent loans among the garbage on the secondary market.

But it’s so tedious to do. It continues to remain a separate deal for the time being. If/when I ever decide to just cut bait on this half-baked idea, I’ll recognize the loss here and move on.

Anyway, here’s the latest on all that.


Month over month, investment income was up +2.69% compared to $1,098.85 in April. This consistency is thanks to similar dividend distributions and options writing activity combined with a lack of capital gains.

Reminds me of the Demotivators poster:

Usually month over month comparisons are a little weird because of the way I count “income”, since options activity and capital gains are going to be erratic. But that’s how I count it, so it is what it is.

I now have over 4 years (!) of data on my income tracking sheet.

So I’ve been including this table in this segment to look at longer term trends:





Capital Gains



























Pretty cool huh?

It’s worth mentioning that this month of May marks the 2 year anniversary of when I finally fired my family’s long-time financial advisor (broker/salesman) and moved the inherited IRA over to a self-managed account at Interactive Brokers. Since IBKR didn’t support many of the crap funds I was in, there was a forced liquidation which resulted in the significant capital gains being recognized in May 2016.

Incidentally the account was worth ~$190K when I moved it over. As of this writing, the NAV is just over $220K (and I took a $4K RMD in 2017). That boxes out to about an 8.9% annualized return. Which I’d say is pretty damn good considering that I haven’t ever pushed the equity allocation much over 60%.


There was one dividend raise this month.

AAPL bumped their quarterly distribution to $0.73 from $0.63/share previously. That is a 15.87% increase!

AAPL is well on it’s way to becoming the first company to ever reach a $1 trillion market capitalization, and there is a lot of debate over whether that’s an appropriate valuation or not. What shouldn’t be in question, however, is the safety of the dividend or the company’s willingness to reward its shareholders. Fortunately Mrs. Wizard had the foresight to become a shareholder several years ago!

And so we bid a fond farewell to May. I’m not selling in May and going away, although it does feel as though things are getting frothier with each market session.

When will the music stop? Is AAPL worth $1 trillion? Am I an idiot for not being 100% weighted in equities and only getting a 9% annualized return in my inherited IRA?

The floor is yours, anonymous interwebs denizen. Speak your mind in the comments below!

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