Market Beating Options - Monthly Update

BofA and Ezcorp Calls Enjoy Big Gains!

Our options portfolio finished the month well above the YTD market return. Furthermore, our return since inception is a phenomenal 425% just since January 2007. The biggest gains last week came from our call positions in Bank of America and Ezcorp which rose 17% and 20% respectively. Unfortunately we lost ground on our Del Monte Call position. This investment will soon expire in March and the loss from time decay has been sharp. The option is not too far out of the money, but the stock would need to make a major advance over the next week or two prior to expiration for us to make money. There is a potential catalyst in that Del Monte's quarterly earnings are due for release next week, but it would take a significant and positive surprise to move the stock price enough for us to be in the money. Our call position (DBB) against the base metals index also moved sharply down last week. This call has a July expiration, so there is time for a recovery in the metals industry. Remember, using our strategy, success ratios with picking long call options will be lower than for stock picking due to the option trading characteristics. However, the rewards with trading call options are greater when we do get those picks right and that more than compensates for a lower overall success ratio. We also supplement our call option positions by selling short index options that can generate income throughout the year. Overall, our record speaks for itself as our portfolio performance with options trading has been outstanding.

Portfolio Details Available Online At: http://www.marketbeatingstocks.com