WMT - New Position

I decided with the drop in Wal-Mart today that I would buy some.


WMT BTO 200 shares @ 57.80 ($11,569.95)
STO 2 60 Sep 08 @ 1.20 Income $227.04
RIU 1.95% RIE 5.57% Monthly RIE 3.98% Annual RIE 48.38%

Review of Positions for Next Week

Starting to evaluate possibilities for next weeks expiration or exercise of calls. Do I want to let calls be exercised or to buy some of them back. Current almost half of the stocks in Account 2 could be called: CVS, GE, JPM, KO, RIMM, SPLS, UNH, WM. A couple of these of just out at current time. A couple of others are further out but could be in by next Friday. The current market is like a Yo-Yo and not very easy to predict if stocks will be called or not. I usually let the stocks be called and then repurchase. Trading in a Market to Market account all gains are short term so the only advantage of a roll out is savings of exercised commission which must be traded off against cost of buy back of option and repurchase of stock.

Boeing (BA) New Position

As Boeing bounces off a 3 year low I decided to enter a OTM position

BA BTO 200 shares @61.84 ($12377.95)
STO 2 65 Sep 08 @1.55 Income $297.04
Dividend 0.40 $80.00
RIU 3.0% RIE 7.9% Monthly RIE 4.98% Annual RIE 60.58%

Allen Greenspan

We all need to learn if Allen Greenspan is giving an interview or speech the market will go DOWN. He opened his mouth on CNBC and the market went down an additional 100+ points. He is still pusing a 50% chance of recession and the market does not want to hear that.

GOLD Run

Today all forms of gold up. Black GOLD (Coal) – Liquid GOLD (Oil) – and Real GOLD (Gold)
JRCC, APA, VLO, AUY and others.

CVS & KO New Positions - AUY Additional Position

Bought a couple of quality stocks (CVS, KO) today and sold ITM calls. Also increased AUY position with purchase of additional shares and selling of ITM calls.

KO BTO 200 shares @ 51.51 ($10,311.95)
STO 2 50 Aug08 @ 2.00 Income $387.04
If Exercised Net 0.60%, Monthly 1.06%, Annual 12.93%

AUY BTO 500 shares @ 12.73 ($6,374.95)
STO 5 12Aug08 @ 1.10 Income $537.04
If Exercised Net 2.34%, Monthly 4.13%, Annual 50.21%

CVS BTO 300 shares @38.27 ($11,490.95)
BTO 3 37.50Aug08 @ 1.85 Income $542.04
If Exercised Net 2.51%, Monthly 4.42%, Annual 53.83%

Market to Market Accounting

One method to write off paper losses against CC income is to use Market to Market accounting. The end of the year the paper gains and losses of all positions are adjusted to the price the last day of the year. This assists with large underwater stocks. The new adjusted price becomes the new cost for tax purposes so you are only deferring the gains tax until the positions recovers.

Market to Market can be done by Active Traders. I have set up an LLC to do my trading in. This helps to establish the trading as a business for IRS purposes and permits immediate establishment of Market to Market accounting for trades.Several sites are available on the internet about this topic.

I use Traders Accounting. www.tradersaccounting.com Here is another site with information
http://www.armencom p.com/mark- to-market. html