Concentrated Stock

An investor has been investing in shares of XYZ company since the 1950 and has built up a sizable position. He was receiving a steady stream of dividend income, but recently XYZ cut their dividend to almost nothing! Ken considers liquidating some of his position but he does not want to pay the capital gains tax when he sells shares that he purchased at such a low basis. He always imagined that he would leave the stock to his children anyway and knows that they will receive a step up in basis. Ken's advisor makes the following suggestion: Ken should take the position and invest in the Optima Overwrite strategy. California Investment Trust will systematically write covered call options against shares of XYZ company in order to generate the income that Ken needs.


Option trading is not suitable for all investors. Investors should read and understand the Characteristics and Risks of Standardized Options.


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    California Investment Trust 44 Montgomery Street, Suite 2100 San Francisco, CA 94104 Phone: 800-225-8778
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The pricing, performance, graphs, and charts are provided by Ticker Technologies, Inc. The information contained herein has not been verified by California Investment Trust Fund Group or by its advisor, CCM Partners, LP, and should not be used for trading purposes. For official Fund prices and performance, please contact the Funds at (800) 225-8778. Past performance is not necessarily indicative of future results and current performance may be lower or higher than the performance quoted. The net asset value of each Fund's shares will fluctuate, as will the investment return and the principal value of an investment, so that an investor's shares, when redeemed, may be worth more or less than their original cost. This sheet must be preceded or accompanied by the current prospectus for the funds comprising the California Investment Trust Fund Group, which provides details about charges, investment objectives, risks and operating policies of the Funds. RFS Partners is the distributor of the California Investment Trust Fund Group. Distributed by RFS Partners 01/2010. Get Started Today: Download an application or call us at (800) 225-8778 and allow us to put together an application package that meets your investment objectives.