Another Profitable Month --- Jeff

Ric,

Thank you again (writing Naked Puts).

CSIQ +0.65 pts (5 contracts)

CREE +0.45 pts (5 contracts)

GES +0.60 pts (5 contracts)

Long SWKS +0.90 pts

Zero losses!!!

I'm not sure why I was so reluctant to put on more positions. I think I was my own
worst enemy this past few weeks. I guess I'm concerned about the market looking
like it's due for a pull back?

Regards,

Jeff T.

..................

I'm glad that you're making money. Selling Puts, especially Puts of fundamentally
sound stocks, is a real money making propostion. You're essentially selling insurance
to someone over the next 30 days who's wants the security of limiting his or her loss
in that stock.

Typically, the TSM approach starts with a quality stock and writes a
strike that is at least 15% below today's price (30-40 days to expiration, 10% with
15-30 days and 5% with 1-15 days) with a premium that guarentees an annuallized
18% return. A stock can do five things over our holding period: go up a lot, go up a little,
stay flat, go down a little (say 10%) or go down a lot. We make our premium in four of
those scenarios and don't lose as much as a stock owner in the fifth.

Since 2/9/09 (13 months ago), TSM has forecast 92 Naked Puts of which 84 have proved
profitable (91.3% winners). Trading 10 contracts in each would have generated $44,924
in premium.

Selling Naked Puts is a conservative, profitable strategy. Every evening I run an option
search using the current TSM list of stocks looking for candidates (5-15% downside
protection based on number of days left before expiration and 18% annualized yield). I
personally take most of these trades as a way of deploying money at this rate of return.
Further, I try to "tweet" the particular Puts I'm trading -- follow me at TSM_rm if you're
a subscriber.

ric