*% Annualized Return Target Overall Portfolio

1. Covered Calls Farm.com Big Rules to achieve * annual return target – 2010*(You need to decide what is your target %..mine is 30% as a stretch target) • *% Annualized Return Target Overall Portfolio • $_______ Maximum investment in any one stock (net of Covered Calls) • Consider Closing Position when 75% call premium captured (will depend on time remaining). • Consider early harvest when call premium captured 90% ITM calls, i.e., roll longer at same strike price (including LEAP’s) • Ok to write LEAP’s including 2012 if overall annual profit is at least 18-22%. • No limit on number of holdings as long as premium targets are being met. • Ideal write is 15% actual in approximately 6 months. (30% per annum) Will vary depending on markets. • Consider taxation issues in taxable account (don’t write deep in the money – no more then 1 strike price below current stock price). More aggressive to avoid Wash Sales (pain at tax time). • 2010: Focus on each transaction being a profit including holding positions longer. Apply strategy of reducing the net investment over time. • Do not write up to capture profits by paying in more capital. Let the position be called and then decide on replanting crop. Forces a review of all crops and should help avoid shares moving too high and adding more risk. Who wants to risk making more money with an over ripe crop! • Willing to add stocks to the Compost Pile longer term in line with item directly above. • Keep emotions out of the Covered Calls Farm. Apply solid farming techniques and experience. • Farmer Ron March 2, 2010 • Other Items that help you better manage your farm.