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Wednesday, July 1, 2009

Returns -- Through June 2009

1. Month of June 2009 Result:

The Covered Calls Advisor Portfolio (CCAP) performance result for the month of June 2009 highlights the benefit of being a covered calls investor during a neutral market. The Russell 3000 benchmark was virtually unchanged for the month of June, as it increased by a mere 0.11%. In comparison, the CCAP increased by 2.87% during June. The CCAP outperformance is indicative of the advantage (when compared with a basic buy-and-hold strategy) that can accrue to covered calls investors from the options income received by selling near-month calls.

2. Year-to-Date Through June 2009 Results:

The 2009 Year-to-Date results are as follows:

CCAP Absolute Return (Jan 1st through June 30th, 2009) = +26.48%
= ($252,618.63 - $199,733.10)/$199,733.10

Benchmark Russell 3000(IWV) Absolute Return (Jan 1st through June 30th,2009) = +3.60%
= ($53.87 - $52.00)/$52.00

For the first six months of 2009, the table below shows that CCAP has outperformed the Russell 3000 benchmark by 22.88 percentage points (26.48% - 3.60%):





"Stick with Covered Calls"!







3. Prior Years Results:

The Covered Calls Advisor Portfolio (CCAP) was begun in September, 2007. The annualized returns achieved for 2007 and 2008 compared with the Russell 3000 benchmark results were as follows:








Note: This Covered Calls Advisor uses a bottom-line performance measure to determine overall portfolio investment performance results -- it is called 'Total Account Value Return Percent'. A simple example demonstrates how it is calculated:
If the total CCAP portfolio value was $100,000 at the beginning of the calendar year and $110,000 at the end of that year (and with no deposits or withdrawals having been made), then the 'Total Account Value Return Percent' would be +10.0% [($110,000-$100,000)/$100,000]*100.

Regards and Godspeed,

Jeff

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