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Sunday, February 28, 2010

Returns -- Through February 2010

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

1. One-Month Result (Feb 2010):
The Covered Calls Advisor Portfolio (CCAP) slightly outperformed the Russell 3000 benchmark in February. The CCAP returned +3.97% in February compared with +3.37% for the Russell 3000, a +.60% (3.97%-3.37%) outperformance as follows:

CCAP February 2010 Absolute Return = +3.97%
($272,164.80-$261,772.44)/$261,772.44

Benchmark Comparison: Feb 2010 Absolute Return for Russell 3000 (IWV) = +3.37%
($64.97-$62.85)/$62.85

2. 2010 Year-to-Date Results (Jan 1st through Feb 28th, 2010):
The Covered Calls Advisor Portfolio (CCAP) has underperformed the Russell 3000 benchmark by 0.74% [-1.21%-(-0.47%)] over the first two months of 2010 as follows:

CCAP 2010 Year-to-Date Absolute Return = -1.21%
($272,164.80-$275,491.90)/$275,491.90

Benchmark Russell 3000(IWV) 2010 Year-to-Date Absolute Return = -0.47%
($64.97-$65.28)/$65.28


3. Prior Years Results:
The Covered Calls Advisor Portfolio (CCAP) was begun in September, 2007. The annualized returns achieved for 2007, 2008, and 2009 compared with the Russell 3000 benchmark results were as follows:











As a reminder, the 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.

As shown in the right sidebar near the top of this page, the Covered Calls Advisor's current Overall Market Meter rating remains "SLIGHTLY BULLISH". The corresponding investing strategy is to, on-average, sell 2% out-of-the-money covered calls for the nearest expiration month (now Mar2010).

If you have any comments or questions, please feel free to submit them -- they are always welcomed. Click the 'comments' link below. If you prefer confidential communications, my email address is listed at the top-right sidebar of this blog site. Also, if you haven't already done so, consider joining the justcoveredcalls Yahoo!Group site (link), which is a very good forum for anyone interested in additional information and discussion related to covered calls.

Regards and Godspeed,

Jeff

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