Account 2 Status and Comparison to Mutual Fund Account

This report reflects the status of Account 2 prior to opening of the market 22 Sep 2008 or after calls expired /exercised 19 Sep 2008. The account is compared to a Mutual Fund account. Initial funding for Account 2 was obtained from the Mutual Fund account and us opened1 Jul 2008.

Closed Positions (16 positions)
Total Cost $161,229.86
Total Gain $6,661.45
Net 4.13%, Avg. Monthly 5.24%, Avg. 63.77%
Average Holding Period 24 days

Open Positions (13 positions, 2 have CCs against)
Total Cost $172,029.14
Current Value $ 156,288.00
Income to Date $9,828.72
% Income to Date 5.71% (based on cost), Avg Monthly 3.42%
Average Holding Period 50

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
Account 2 (OpXpress) – 1.000 0.993 0.998 0.986
CFA Mutual Fund (RJF)– 1.000 0.971 0.980 0.943
Delta Acct 2 to CFA % 0 2.2% 1.8% 4.3%

Stock buys were mostly made using CSE Advanced Charting techniques. However, I limit chooses to known stocks that I consider high quality. To date no TSS or special management techniques have been used in this account. My goal is not as aggressive as CSE pitches. My goal is a 2-3% cash flow per month and to try and minimize risk of account value decreasing by selling ITM calls (the majority of the time). 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.

Exercised Positions Sep - AIG, SPLS, JPM, XHB

A total of 4 positions were exercised between accounts 1 and 2.

Exercised/Closed Positions Account 2
AIG BTO 1000 shares @2.06 ($2069.95)
STO 10 2.50 Sep 08 @0.20 Income $187.04 Exercised
Exercised 29.33%, Monthly 439.97%, Annual 5352.93%

SPLS BTO 500 shares @23.45 ($11,734.20)
STO 5 22.5 Sep 08 @ 1.90 Income $937.04 Exercised
Exercised 3.77% Net, Monthly 3.77%, Annual 45.92%

JPM BTO 300 shares JPM @ 40.19 Total ($12,066.95)
STO 3 40JPM Aug08 @ 1.99 Income $584.04 Expired
STO 3 40 JPM Sep08 @ 0.95 Income $272.04 Exercised
Exercised net 6.46% - Monthly 3.34%, Annual 40.63%

Exercised/Closed Position Account 1
XHB Net Return 8.25% in 109 days, 2.27% Monthly and 27.2% Annual

PHM - Position Added Account 1

Pulte Homes
PHM BTO 100 shares @17.2699 ($1733.99)
STO 1 17.5 Oct 08 @1.65 Net Income $156.74
RIU 9.04%, RIE 8.98%, Monthly RIE 9.62%, Annual RIE 115.5%

Pulte Homes and Toll Brothers are the 2 strongest (best financial position, cash available) home builders in US. They will probably lead the new home recovery area.

GE Rolled Out

With the high probability that GE would be suspended from short trading by Monday, I decided to roll it out today.

GE BTO 400 shares @ 29.86 ($11,953.95)
STO 4 30 Sep 08 @0.78 Income $267.04 Expired
BTC 4 30 Sep 08 @ 0.01 ($12.95)
STO 4 29 Oct 08 @ 1.06 Income $397.08
Dividend $124 Payable 27 Oct
If Exercised 3.71% Net, Monthly 1.89%, Annual 22.94%

APA Rolled Out and Up

APA was adjusted today because of sudden spike in price. 120 Sep call rolled out and up to 135 Oct call

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
Net if Exercised 2.79% - Monthly 0.80% - Annual 9.69%

AIG - Gamble of the Month

Gamble of the month.

AIG BTO 1000 shares @2.06 ($2069.95)
STO 10 2.50 Sep 08 @0.20 Income $187.04
If Exercised 29.33%, Monthly 439.97%, Annual 5352.93%
If Not Exercised 9.04%

McCain - Palin and Topsy Turby Stock Market

The market is as topsy turby as the political polls. It is difficult to determine whether to roll out calls or ride them out since the ups and downs are fairly dramatic. I am continuing to follow calls. Currently 4 or 5 maybe called but could go either way. Gold and Oil are really killing me this month.