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.

Assigned/Exercised Positions - MS, PFE, JPM

All this positions were established ITM. Now the work begins to determine adjustments for remaining positions.

JPM BTO 300 shares @ $41.14 ($12,351.50)
STO 3 37.5 JPM Oct 08 @5.36 Income $1595.04
Dividend $114.00 payable 10/31 Exercised
If Exercised 4.84%, Monthly 6.05%, Annual 73.58%


MS BTO 200 shares @19.55 ($3,919.65)
STO 2 19 Oct 08 @ 1.60 Income $307.04
BTC 2 19 Oct 08 @0.95 ($202.95)
STO 2 17.5 Oct 08 @ 1.5 Income $287.04
BTC 2 17.5 Oct 08 @1.70 ($352.95)
STO 2 19 Oct 08 @1.00 Income $187.04 Exercised
Net if Exercised 2.44 %, Monthly 36.59%, Annual 445.21%

MS BTO 200 shares @$17.77 ($3563.65)
STO 2 20 Oct 08 @2.70 Income $527.04
BTC 2 20 Oct 08 @1.1 ($232.95)
STO 2 17.5 Oct 08 @ 1.90 Income $367.04
BTC 2 17.5 Oct 08 @ 1.35 ($282.95)
STO 2 14 Oct 08 @22.50 Income 487.04
BTC 2 14 Oct 08 @3.10 ($632.95)
STO 2 17.5 Oct 08 @1.10 Income $207.04
Dividend 0.27 Income $54.00 Payable 10/31/08 Exercised
If Exercised 11.78%, Monthly 35.33%, Annual 429.88%

PFE BTO 200 shares @15.2 ($3049.55)
STO 2 15 Oct 08 @0.86 Income 159.04 Exercised
Net If Exercised 3.26%, Monthly 13.99%, Annual $170.20

Adjustments UNH and APA

I relearned a lesson on UNH by being to aggressive on the call I sold and had to pay a real penalty to get out. It does not pay to be overly aggressive in a down market. Hopefully, I will remember this lesson. It will not take much longer to recover from the hole I am in on UNH.

UNH BTO 400 shares @32.69 ($13,085.20)
STO 4 35 Sep 08 @ 0.70 Income $267.04 Expired
STO 4 30 Oct 08 @0.35 Income $127.05
BTC 4 30 Oct 08 @0.05 ($32.95)
STO 4 20 Oct 08 @0.20 Income 67.04
BTC 4 20 Oct 08 @3.77 ($1520.95)
STO 4 27 Nov 08 @0.95 Income $367.04
If Exercised - 44.53%Net, Monthly –14.36%, Annual –175.77% NOTE: Must monitor for roll-out

APA BTO 100 shares @ 143.55
STO 1 135Jul08 @ 10.20 net $1007.04
BTC 1 135Jul08 @ 0.50 net ($62.95)
STO 1 130Jul08 @ 1.00 net $87.04 Expired
STO 1 135 Aug 08 @ 0.90 net $77.04
BTC 1 135 Aug08 @ 0.35 (47.95)
STO 1 125 Aug08 @ 1.00 $87.04 Expired
STO 1 130 Sep 08 @ 0.70 $57.04
BTC 1 130 Sep 08 @ 1.07 ($119.95)
STO 1 135 Sep 08 @ 0.55 $42.04
BTC 1 135 Sep 08 @ 0.80 ($92.95)
STO 1 120 Sep 08 @ 0.75 $62.04 Expired
BTC 1 120 Sep 08 @ 1.3 ($142.95)
STO 1 135 Oct 08 @ 2.4 Income $227.04
BTC 1 135 Oct 08 @ 0.09 ($21.95)
STO 1 115 Oct 08 @ 0.62 Income $49.04
BTC 1 115 Oct 08 @ 0.17 ($29.95)
STO 1 100 Oct 08 @ 1.45 Income $132.04
BTC 1 100 Oct 08 @0.10 ($22.95)
STO 1 75 Oct 08 @ 1.25 Income $112.04
BTC 1 75 Oct 08 @1.00 ($112.95)
Dividend @ 0.15 Income $15.00 Payable 20 Oct
STO 1 90 Nov 08 @ 4.10 Income $397.04
Net if Exercised -25.06% - Monthly –5.41% - Annual -65.81% NOTE: Must Monitor for roll out

Adjustments WMT, MSFT, CSCO

WMT BTO 200 shares @ 57.80 ($11,569.95)
STO 2 60 Sep 08 @ 1.20 Income $227.04 Expired
Dividend 0.2375 Income $47.50
STO 2 62.5 Oct 08 @0.85 Income $157.05
BTC 2 62.5 Oct 08 @0.01 ($4.95)
STO 2 60 Nov 08 60 @1.09 Income $205.04
If Exercised Net 9.07%, Monthly 2.62%, Annual 31.84%

MSFT BTO 400 shares @ 27.97 ($11,197.55)
STO 4 28 Sep 08 @ 0.85 Income $323.04 Expired
Dividend 0.11/share Income $44.00 Payable 9/11
STO 4 28 Oct 08 @ 0.53 Income $199.05
BTC 4 28 Oct 08 @0.05 ($32.95)
STO 4 25 Oct 08 @0.32 Income $115.04
BTC 4 25 Oct 08 @0.07 ($40.95)
STO 4 26 Nov 08 @0.80 Income $307.04
If Exercised Net 1.68%, Monthly 0.54%, Annual 6.61%

CSCO BTO 500 shares @ 24.89 ($12,454.45)
STO 5 25 Sep 08 @0.77 Income 372.04 Expired
STO 5 25 Oct 08 @0.30 Income $137.05
BTC 5 25 Oct 08 @ 0.04 ($24.95)
STO 5 22 Oct 08 @ 0.28 Income $127.04
BTC 5 22 Oct 08 @0.04 ($24.95)
STO 5 19 Oct 08 @0.24 Income $107.04
BTC 5 19 Oct 08 @0.05 ($37.95)
STO 5 21 Nov 08 @0.3 Income $137.04
Net If Exercised --10.51%, Monthly -3.39%, Annual -41.25% NOTE: Monitor for roll out

New Position - MS - Morgan Stanley

MS BTO 200 shares @19.55 ($3,919.65)
STO 2 19 Oct 08 @ 1.60 Income $307.04
RIU 7.83%, Net if Exercised 4.53 %, Monthly 67.90%, Annual 826.17%

Adjustment - MS - Morgan Stanley

MS BTO 200 shares @$17.77 ($3563.65)
STO 2 20 Oct 08 @2.70 Income $527.04
BTC 2 20 Oct 08 @1.1 ($232.95)
STO 2 17.5 Oct 08 @ 1.90 Income $367.04
BTC 2 17.5 Oct 08 @ 1.35 ($282.95)
STO 2 14 Oct 08 @22.50 Income 487.04
BTC 2 14 Oct 08 @3.10 ($632.95)
STO 2 17.5 Oct 08 @1.10 Income $207.04
Dividend 0.27 Income $54.00 Payable 10/31/08
If Exercised 11.78%, Monthly 35.33%, Annual 429.88%

New Position - AUY

I expanded my holding in AUY by opening another position. I believe AUY will be up by year end.

AUY BTO 500 shares @5.46 ($2739.45)
STO 5 5 Nov 08 @ 1.20 Income $587.04
Net if Exercised 12.33%, Monthly 9.73%, Annual 118.39%