YTD Return Hits 17.5%!

Our Aggressive portfolio moved up again last week, increasing the YTD return to 19%. Our short positions once again gained ground as time decay played to our advantage. Basic materials had a good week overall and that propelled our DBB call option higher. Volatility will rise as quarterly earnings season begins, which means our call positions may experience significant movement over the next few weeks. In particular, we are watching Bank of America closely as they will release quarterly earnings next week. We have a BAC Jan 2011 call option and currently sit on a 68% gain, so we expect to earn big money on this position. We do have some cash to put to work and have placed two orders for execution on Monday. The first is a call spread order on UAM (buy Oct $15 and sell Oct $17) and the second is a buy order on the DLM Sep $15 call. We are looking for aggressive pricing on both options, so there is no guarantee the orders will execute when the markets open.