Comparison of CC Account and Mutual Fund Account

This report reflects the status of Account 2 prior to opening of the market 19 Oct 2008 or after calls expired /exercised 16 Oct 2008. The account is compared to a Mutual Fund account. Initial funding for Account 2 was obtained from the Mutual Fund account and us opened 1 Jul 2008. Four positions were added to the closed positions this month.

Closed Positions (21 positions)
Total Cost $177,185.75
Total Gain $7,873.91
Actual Net Gain 4.28%, Avg. Monthly 6.05%, Avg. 73.66%
Average Holding Period 21 days

Open Positions (19 positions, 6 open for Nov)
Total Cost $198,573.82
Current Value $ 159,971.11
Income to Date $15,786.45
% Income to Date 7.95% (based on cost), Avg Monthly 3.41%
Average Holding Period 70 (includes holding with sold Nov calls till expire or exercise)

Normalized Comparison with CFA managed Mutual Fund Account. Both accounts were normalized to 1.00 after the account was split into Account 2 and CFA Mutual Fund (RJF).

1 Jul 19 Jul 15 Aug 19 Sep 17 Oct
Account 2 (OpXpress) – 1.000 0.993 0.998 0.986 0.800
CFA Mutual Fund (RJF)– 1.000 0.971 0.980 0.943 0.687
Delta Acct 2 to CFA % 0 2.2% 1.8% 4.3% 11.2%

As with most accounts, Sep/Oct has been hard on account values. The drop off has been rather dramatic. Currently, I will be under water with about 50% of my open positions when I sell my calls for Nov. But, I am paddling hard to stay a float. However, my CC account did not drop as far as the Mutual Fund account.

My goal is a 2-3% cash flow per month and to try and minimize risk of my account value decreasing by selling ITM calls (the majority of the time). However, during this down market, I have been averaging a cash return of over 3% as noted above. To date, I have done better than the CFA/Broker. I am not overly concerned about account value since I believe the stocks will recover in time since I try to buy higher quality stocks.