New Positions - USO, BA, YHOO, CAT, PRU

New Positions opened over the past couple of days

USO BTO 200 shares @ 32.95 ($6599.93)
STO 2 31 Jan 09 @4.10 Income $807.04
If Exercised 6.02 % Net, Monthly 7.52%, Annual 91.52%

BA BTO 200 shares @40.66 ($8141.95)
STO 2 40 Jan 09 @2.50 Income $487.04
If Exercised 4.12% Net, Monthly 5.15%, Annual 62.60%

YHOO BTO 1000 shares @ 12.76 ($12,774.45)
STO 10 12.5 Jan 09 @1.51 Income $1,497.04
If Exercised 9.49% Net, Monthly 11.87%, Annual 144.37%

CAT BTO 200 shares @41.37 ($8283.57)
STO 2 42.5 Jan 09 @2.00 Income $387.04
If Exercised 7.17% Net, Monthly 8.96%, Annual 108.97%

PRU BTO 500 shares @27.12 ($13,568.95)
STO 5 25 Jan op @4.20 Income $2087.03
If Exercised 6.95% Net,, Monthly 10.13%, Annual 123.27%

UNH BTO 400 Shares @26.29 ($10,525.94)
STO 4 27 Jan 09 @1.20 Income $467.04
If Exercised 6.95% Net, Monthly 9.06%, Annual 110.23%

Adjustments GE, DD, CSCO, MSFT

GE (2 Different Positions Combined)
BTO 600 shares Total Cost ($16,455.88) Original Cost not MTM adjusted
Income to Date $1,884.90
Average Holding of Combined Positions 99 days
Income 11.45% to date, Monthly 3.47%, Annual 41.64%
STO 6 17.5 Jan 09 @ 0.33 Income $185.04
If Exercised Net –23.67% , Monthly -7.17%, Annual -87.29% NOTE: Must watch for roll out/up

DD BTO 200 shares Total Cost ($6929.93) Original Cost not MTM adjusted
Income to Date $622.44
Holding Peiod 59 days
Income 9.56% to date, Monthly 19.0%, Annual 228.00%
STO 2 25 Jan 09 @1.35 Income $257.04
If Exercised -14.72% Net, Monthly -7.49%, Annual –91.09% NOTE: Must watch for roll out/up

CSCO BTO 500 shares Total Cost ($12,454.45) Original Cost not MTM adjusted
Income to Date $1,047.80
Holding Period 121 Days
Income 8.41% to date, Monthly 2.10%, Annual 25.2%
STO 5 17.5 Jan 09 @0.33 Income 152.04
If Exercised -20.19% Net, Monthly –5.01%, Annual –60.90% NOTE: Must watch for roll out/up

MSFT BTO 400 shares Total Cost ($11,197.55) Original Cost not MTM adjusted
Income to Date $1,079.83
Holding Period 121 Days
Income 9.64% to date, Monthly 2.41%, Annual 28.92%
STO 4 21 Jan 09 @0.27 Income $95.04
If Exercised -14.58% Net, Monthly -3.61%, Annual -43.98% NOTE: Must watch for roll out/up

Adjustments AUY, COST, WMT, PFE, UYG, AA

Most of the positions not exercised in December have been in the account for a period of time. Therefore, I am going to summarize the position at the end of December CC expiration and then provide details of future CCs on open positions and new positions as opened.

AUY (3 Different Positions Combined)
BTO 1500 shares Total Cost ($19,839.40) Original Cost not MTM adjusted
Income to Date $3,268.41
Average Holding of combined positions 169 days
Income 16.4% to date, Monthly 2.92 %, Annual 35.11%
15 10 Jan 09 calls were open at end of period and income is included above
If Exercised Net –7.97%, Monthly -1.59%, Annual -71.27% NOTE: Watch for buy back and roll out

I will post further Adjustments when made and new positions.
COST BTO 200 shares Total Cost ($14,579.94) Original Cost not MTM adjusted
Income to Date $1,608.74
Holding Period 167 Days
Income 11.03% to date, Monthly 1.98%, Annual 23.77%
STO 2 57.5 Jan 09 @0.9 Income $167.04
If Exercised -9/01% Net, Monthly -1.39%, Annual -16.96% Note: Watch for buy back and roll out

WMT BTO 200 shares Total Cost ($11,569.95) Original Cost not MTM adjusted
Income to Date $882.89
Holding Period 132
Income 7.63% to date, Monthly 1.73%, Annual 20.81%
STO 2 57.5 Jan 09 @1.48 Income $285.04
If Exercised 9.4% Net, Monthly 1.77%, Annual 21.59%

PFE BTO 300 shares ($5,112.35) Original Cost not MTM adjusted
Income to Date $537.12
Holding Period 70 Days
Income 10.51% to date, Monthly 4.50%, Annual 54.05%
STO 3 17.5 Jan 09 @1.65 Income $182.05
If Exercised 16.56%, Monthly 5.12%, Annual 62.33%

UYG BTO 300 shares ($1,782.92) Original Cost not MTM adjusted
Income to Date $140.04
Holding Period 9 days
Income 7.63% to date, Monthly 27.51%, Annual 334.76%
BTO 700 shares ($4,048.95)
Total Cost of position ($5,831.87)
STO 10 6 Jan 09 @0.60 Income $587.05
If Exercised 15.18 %, Monthly 12.65%, Annual 153.91%

AA BTO 300 shares @10.98 ($3303.38)
Income to Date $118.22
Holding Period 43
Income 3.58%, Monthly 2.69%, Annual 32.22%
STO 3 12.5 Jan 09 @0.21 Income $50.04
If Exercised 18.31%, Monthly 7.85%, Annual 95.49%

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.

Positions Called Out/Exercised Dec

The following positions were Exercised at a profit in Dec.
AUY, CAT, FCX, PRU, VZ

The following positons were ITM and Exercised in Dec. I elected to let them be called rather than buy back and roll out or up since they would be Marked to Market at year end.
APA, BA, GME, JPM, MS, RIMM, TRA, UNH

I will be adjusting remaining positions and determining what new positions to enter over the next few days.