During the first 4 months of our covered call investment strategy much of the expertise we at Kingdom Capital Training Institute offer to you was yet to be developed. We started out being somewhat mechanical, selling call options with high premiums only to methodically unwind them at our breakeven points. During this initial phase we fought a mostly down market unwinding most of our positions only to establish new positions with similar results. It wasn't until about September of 1998 (and a 25% decline in our fund) that we determined a mostly mechanical approach was not optimal in achieving the results we desired. In fact, this portfolio action, we find, is classically typified during market corrections, hence indicating out stop loss strategies we present to you as one of our key Kingdom Capital Training Institute seminars. We did manage, however to re-enter the market rather nicely - capitalizing on a classic "double-bottom" confirmation - to rebound 100% before year-end and to finish with a nice 46% gain without margin!
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