KSS - Closed

The KSS Aug08 50.00 call was exercised on Fri and the stock was called away for
a profit. The following is the trade history and returns, including IB
commissions.

This is an example of a stock, held for almost 1 year, where the stock priced
declined by 9%. Yet, through selling covered calls, I was able to make a profit
and return over 9% or 10% annualized. That's double the return of buy & hold.

Covered Call Results

Stock Investment: $5,690.00
Income Generated: $1,214.25
Percent Income Generated: 21.34%
Annualized Income Generated: 24.11%
Net Profit If Called: $524.25
Percent Return If Called: 9.21%
Annualized Return If Called: 10.41%
Days Held to Expiration: 323 days

Buy & Hold Comparison

Opening Price: $56.90
Closing Price: $51.78
P/L per Share: -$5.12
Shares: 100
Dividends: $0.00
Net Profit: -$512.00
Percent Return: -9.00%
Annualized Return: -10.17%
Duration of Trade: 323 days

Trade History:

27-Sep-07 - Initial Stock Position - BTO 100 KSS @ 56.90 -
27-Sep-07 - Initial Call Option - STO 1 Oct07 55.00 Call @ 3.20 - Expired
22-Oct-07 - Continued Trade - STO 1 Nov07 55.00 Call @ 3.19 - Expired
20-Nov-07 - Continued Trade - STO 1 Dec07 50.00 Call @ 1.74 - Expired
10-Jan-08 - Continued Trade - STO 1 Apr08 50.00 Call @ 0.99 - Expired
23-Apr-08 - Continued Trade - STO 1 May08 50.00 Call @ 0.81 - Expired
19-May-08 - Continued Trade - STO 1 Jun08 50.00 Call @ 1.48 - Expired
07-Jul-08 - Continued Trade - STO 1 Aug08 50.00 Call @ 0.73 - Exercised
15-Aug-08 - Option Exercised - EX 1 Aug08 50.00 Call @ 50.00 -