Saturday, August 2, 2008

Returns -- Through July 2008

One-month, year-to-date, and prior year performance results of the Covered Calls Advisor Portfolio (CCAP) are presented below. In each instance, CCAP results are compared against the Russell 3000 Index ETF(IWV) benchmark.

1. One-Month Result (July 2008):
At market close on 07/31/2008, the total Covered Calls Advisor Portfolio (CCAP) value was $242,367.48, a $1,077.38 decrease in the overall portfolio value compared with the $243,444.86 at the end of June(06/30/2008).

CCAP July 2008 Absolute Return = -0.44%

Benchmark Comparison: July 2008 Absolute Return for IWV
= -1.7%


2. 2008 Year-to-Date Results (Jan 1st through July 31st, 2008):
CCAP 2008 Year-to-Date Absolute Return = -6.0%


Benchmark Russell 3000(IWV) 2008 Yr-to-Date Absolute Return = -12.8%

3. Prior Year Results (2007):
The Covered Calls Advisor Portfolio (CCAP) was initiated on September 14th, 2007 with a beginning balance of $250,000. The CCAP balance at year-end (12/31/07) was $257,886.51. Below are the returns of the CCAP for this 2007 timeframe compared with the results of the Russell 3000 (IWV) benchmark during the same time period.

CCAP 2007 Absolute Return = +3.2%

Benchmark (IWV) 2007 Absolute Return = -1.2%

The corresponding annualized return for the 108 days the CCAP existed in 2007 (between Sept 14, 2007 and Dec 31, 2007) was:
CCAP 2007 Annualized Return = +10.7%
[($257,886.51-$250,000.00)/$250,000.00]*(365/108 days)

Benchmark Russell 3000(IWV) 2007 Annualized Return = -4.1%
[($84.40-$85.43)/$85.43]*(365/108 days)

This Advisor's Overall Market Meter continues to indicate that a NEUTRAL investment posture is appropriate at this time. The corresponding covered calls investing approach is to write near-month primarily at-the-money covered calls. By 'at-the-money', this advisor means that for a covered calls portfolio, on average covered calls positions should be established somewhere between 1.0% below and 1.0% above the strike price.


  1. Is you value at end of month the liquidation value of the account, value of stock and CCs, etc?

  2. Hal,
    Yes. Returns are based on the total account value (aka liquidation value). Since stocks and options are both very liquid investments, I believe this is the single best bottom-line method to measure ones performance results.

  3. Jeff,
    Thanks. That is what I thought. I compare my CC account to how the CFA Mutual Fund account is doing in the same time frame. I usually do the comparison at following expiration of most CCs. This tends to eliminate some of the volitatility from the comparison.