Account Status

This report reflects the status of Account 2 prior to opening of the market 24 Nov 2008 or after calls expired /exercised 21 Nov 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. One positions was added to the closed positions this month.

Closed Positions (22 positions)
Total Cost $185,315.61
Total Gain $8,074.55
Actual Net Gain 4.36%, Avg. Monthly 6.32%, Avg. 76.90%
Average Holding Period 21 days

Open Positions (25 positions)
Total Cost $222,218.43
Current Value $ 132,650.96
Income to Date $22,190.01
% Income to Date 9.99% (based on cost), Avg Monthly 3.76%
Average Holding Period 80

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 21 Nov
Account 2 (OpXpress) – 1.000 0.993 0.998 0.986 0.800 0.663
CFA Mutual Fund (RJF)– 1.000 0.971 0.980 0.943 0.687 0.562
Delta Acct 2 to CFA % - 0 2.2% 1.8% 4.3% 10.0% 10.1%

As with most accounts, Sep/Oct/Nov has been hard on account values. The drop off has been rather dramatic. Currently, I will be under water more than 50% of my open positions when I sell my calls for Dec. 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.