Account 2 Status and Comparison to Mutual Fund Account

This report reflects the status of Account 2 prior to opening of the market 22 Dec 2008 or after calls expired /exercised 19 Dec 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. Since this account is a business account as an active trader and utilizes Mark-to-Market (MTM) accounting, several positions that fell ITM were allowed to be exercised at a Loss. These positions would have been adjusted at year end to a loss as part of the MTM.

Closed Positions (37 positions)
Total Cost $185,315.61 on positions not closed ITM for MTM type action ( 29 positions)
Premiums earned and gains on above $10,674.92
Actual Net Gain 4.98%, Avg. Monthly 5.53%, Avg. 67.29%
Average Holding Period 27 days
Total Cost all Closed Positions ($314,075.22)
Total Gain/Loss on all Closed positions ($25,978.05)
Total Premiums&Dividends on all Closed Positions $21,994.00
Avg. Holding Period All 76 days
Avg Prem Gain 5.27%, Monthly 2.08%, Annual 24.96%

Open Positions (11 positions)
Total Cost $103,225.75 Original Cost-Not adjusted for MTM
Current Value $72,754.00
Income to Date $11,230.48
% Income to Date 10.88% (based on cost), Avg Monthly 3.15%
Average Holding Period 104 days
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 19 Dec
Account 2 (OpXpress) – 1.000 0.993 0.998 0.986 0.800 0.663 0.775
CFA Mutual Fund (RJF)– 1.000 0.971 0.980 0.943 0.687 0.562 0.633
Delta Acct 2 to CFA % 0 2.2% 1.8% 4.3% 10.0% 10.1% 14.2%

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. I will be repurchasing most of the stocks sold at a loss to reestablish the position.