Options Expiration - March 2009

The Covered Calls Investor Portfolio contained a total of 7 positions with March 2009 expirations, and 5 positions either with a Non-March expiration or no current covered call. The 7 positions with March expirations had the following results:
- 5 positions (GE, VLO, CAT, AA, AFL) closed in-the-money. The calls were exercised and the stock was sold. Quite a few of these investments ended quite a bit in the money. The annualized gain/loss results (after commissions) were:

General Electric (GE) => +91.3%
Valero Energy Corporation (VLO) => +81.97%
Caterpillar (CAT) => +63.6%
Alcoa (AA) => +57.1
Aflac (AFL) => +67.1%

- 2 positions in the portfolio (FAS and X) ended out-of-the-money. New calls will most likely be established on Monday, barring a large market decline. Both of these positions sitll offer quite large time premiums, and it is therefore the intention of this investor to sell slightl out of the money calls.

The positions in the portfolio which did not have March expirations include AT&T (T), Morgan Stanley (MS), Foster Wheeler (FWLT), Mack-Cali Realty (CLI), Johnson Controls (JCI). These positions are the following:

AT&T
200 Shares Owned
1 April $26 Call
100 shares are currently not covered

Morgan Stanley
100 Shares Owned
1 July $10 Call

Foster Wheeler
100 Shares Owned
1 August $12.50 Call

Mack-Cali Realty
600 Shares Owned
1 April $17.50 Call
1 July $22.50 Call
400 Shares Not Currently Covered

Johnson Controls
100 Shares Owned
1 April $10 Call


After Mack-Cali Realty and AT&T pass their ex-dividend dates, out-of-the money calls will be sold.