Returns -- Through August 2008

Both 2008 year-to-date and 2007 performance results for 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. 2008 Year-to-Date Results (Jan 1st through Aug 31st, 2008):
CCAP 2008 Year-to-Date Absolute Return = -5.42%
($243,909.06-$257,886.51)/$257,886.51

Benchmark Russell 3000(IWV) 2008 Yr-to-Date Absolute Return =
-10.90%
($75.20-$84.40)/$84.40


2. 2007 Results:
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%
($257,886.51-$250,000.00)/$250,000.00

Benchmark (IWV) 2007 Absolute Return = -1.2%
($84.40-$85.43)/$85.43

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.

Establish Altria Covered Calls

A new covered calls position was established today in the Covered Calls Advisor Portfolio(CCAP) as follows:

Established Altria (MO) Covered Calls for Sep08.

08/19/08 Bought 500 MO @ $20.91
08/19/08 Sold 5 MO Sep08 $21.00 Calls @ $.51
Note: Returns below include $.29 ex-dividend on 9/11/08.

Annualized Return If Stock Price Unchanged (ARIU): +43.6%
Annualized Return If Exercised (ARIE): +48.5%
Downside Breakeven Protection: 3.8%

Note: If the call options are exercised early on 9/10/08 to capture the dividend on 9/11/08, then an annualized return of 47.6% would be achieved.

With this investment, the Covered Calls Advisor Portfolio (CCAP) is now fully invested with Sep08 covered calls positions.

Establish SunTrust Banks Inc Covered Calls

A new covered calls position was established today in the Covered Calls Advisor Portfolio(CCAP) as follows:

Established SunTrust Banks Inc (STI) Covered Calls for Sep08.

08/19/08 Bought 300 STI @ $39.91
08/19/08 Sold 3 STI Sep08 $40.00 Calls @ $2.70
Note: Returns below include $.77 ex-dividend on 8/28/08.

Annualized Return If Stock Price Unchanged (ARIU): +99.1%
Annualized Return If Exercised (ARIE): +101.7%
Downside Breakeven Protection: 8.7%

Establish St Jude Medical Inc Covered Calls

A new covered calls position was established today in the Covered Calls Advisor Portfolio(CCAP) as follows:

Established St Jude Medical Inc (STJ) Covered Calls for Sep08.

08/18/08 Bought 400 STJ @ $46.36
08/18/08 Sold 4 STJ Sep08 $45.00 Calls @ $2.40

Annualized Return If Stock Price Unchanged (ARIU): +24.8%
Annualized Return If Exercised (ARIE): +24.8%
Downside Breakeven Protection: 5.2%