Farmer Ron's 2010 Farming Results
The Covered Calls Farm
Planting and Harvesting Covered Calls for Fun and Profit using a Farming Strategy
Please Note: This site does not recommend any specific investments. Please consult with a certified financial planner or brokerage to discuss specific investments. This is not a site for profit but an educational site for a specific call option strategy that is well documented but doesn't seem to be fully understood.
Morningstar YTD index performance 2010. Here is a link to find out the latest on market performance to compare against your own results. There is a lot of data so you will need to scroll down the page to find the major indexes. Also, check the as of date to make sure it's been updated. Good source of information.
Updated: March 16, 2011
The Indexes and Benchmarks to Compare
Please Read: Your performance will vary depending on your exact strategy, stock selection and many other factors. I think the best benchmarks are to look at the Morningstar and see many performances to get an idea what can be achieved and also...what has not been achieved.....
Click on Picture to enlarge and see details
To see the 2010 Results click on the link above.
Overall Return 21.42%
I had two major Farms in 2010:
1. Leveraged Farm: 65.01%
2. Long Term (IRA): 13.38%
I also have a another small account with $5,000. It has a few stocks in it and it's up 6%. (shows on the Fidelity report)
Since 70% of my assets are in my IRA the overall
result was 21.42%. This is below my 2010 30% target for 2010 so I have already started an in-depth review of the IRA performance vs. the Leveraged Farm.
Leveraged Farm: This account is leveraged with approximately 50% margin and averaged expiration time period is around 10 - 12 months.
In the process of moving the average call period to 4-6 months as I have set a 50% performance target for 2011.
Long Term Farm: No leverage and average expiration time period was 16-18 months. This Farm was created with maximum downside protection with the majority of calls LEAPs. At the end of the year there was approximately a 22% downside protection in this account based on premiums outstanding. Unfortunately, the safety of the longer calls did reduce my overall results to the 13.28% 2010 annual return