Covered Call Analyzer from Investment Enhancing Systems, Inc.

The Covered Call Analyzer

$100,000 Conservative Retirement Portfolio Trades for January 21, 2012

This is a rolling portfolio and we will look at open positions and make new trades using monies from called and sold positions each month on expiration weekend. The statements starting "Buy...." is what the Covered Call Analyzer tells you to do after finding the best buy/writes and calculating the values. You can start this portfolios any time after January by following the instructions in our "How to" page.

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		Income* (call premium)	Cost*	Balance
Starting Cash:				$100,000
From running the Analyzer with aggressive parameters on the weekend of Januray 21, 2011 and putting $10,000 into the money available field and assuming commissions of $19.95 per stock trade and $9.94 per call trade plus $1.50 per contract.
Initial Buy/Write:	Buy 700 shares of PHARMERICA (PMC) at $13.21 (closing last trade price) and sell 7 call Out-of-the-Money contracts of PMC1218B15 (Feb$15.00) at $0.50 (closing bid price) expiring on 2/18/2012. Cost is $9,267, and income from sale of the calls is $330 and includes your commissions. Actual return if called at expiration is 16.9%.	$330	$9,267	$90,733
Follow on Activity:
Initial Buy/Write:	Buy 500 shares of POLYCOM (PLCM) at $17.74 (closing last trade price) and sell 5 call Out-of-the-Money contracts of PLCM1218B20 (Feb$20.00) at $0.55 (closing bid price) expiring on 2/18/2012. Cost is $8,890, and income from sale of the calls is $258 and includes your commissions. Actual return if called at expiration is 15.4%.	$258	$8,890	$81,843
Follow on Activity
Initial Buy/Write:	Buy 200 shares of ABERCROMBIE & FITCH (ANF) at $44.51 (closing last trade price) and sell 2 call Out-of-the-Money contracts of ANF1218B50 (Feb$50.00) at$0.74 (closing bid price) expiring on 2/18/2012. Cost is $8,922, and income from sale of the calls is $135 and includes your commissions. Actual return if called at expiration is 13.6%.	$135	$8,922	$72,921
Follow on Activity:
Initial Buy/Write:	Buy 1000 shares of STEC (STEC) at $9.30 (closing last trade price) and sell 10 call Out-of-the-Money contracts of STEC1218B10 (Feb$10.00) at $0.53 (closing bid price) expiring on 2/18/2012. Cost is $9,320, and income from sale of the calls is $505 and includes your commissions. Actual return if called at expiration is 12.7%.	$505	$9,320	$63,601
Follow on Activity:
Initial Buy/Write:	Buy 200 shares of NETAPP (NTAP) at $36.85 (closing last trade price) and sell 2 call Out-of-the-Money contracts of NTAP1218B40 (Feb$40.00) at $1.28 (closing bid price) expiring on 2/18/2012. Cost is $7,390, and income from sale of the calls is $243 and includes your commissions. Actual return if called at expiration is 11.5%.	$243	$7,390	$56,211
Follow on Activity:
Initial Buy/Write:	Buy 100 shares of POLYPORE INTERNATIONAL (PPO) at $54.04 (closing last trade price) and sell 1 call Out-of-the-Money contracts of PPO1218B60 (Feb$60.00) at$0.80 (closing bid price) expiring on 2/18/2012. Cost is $5,424, and income from sale of the calls is $69 and includes your commissions. Actual return if called at expiration is 11.9%.	$69	$5,424	$50,787
Follow on Activity:
Initial Buy/Write:	Buy 100 shares of WALTER ENERGY (WLT) at $66.39 (closing last trade price) and sell 1 call Out-of-the-Money contracts of WLT1218B70 (Feb$70.00) at $3.55(closing bid price) expiring on 2/18/2012. Cost is $6,659, and income from sale of the calls is $344 and includes your commissions. Actual return if called at expiration is 10.3%.	$344	$6,659	$44,128
Follow on Activity:
Initial Buy/Write:	Buy 200 shares of LAS VEGAS SANDS (LVS) at $46.46 (closing last trade price) and sell 2 call Out-of-the-Money contracts of LVS1218B50 (Feb$50.00) at $0.74(closing bid price) expiring on 2/18/2012. Cost is $9,312, and income from sale of the calls is $135 and includes your commissions. Actual return if called at expiration is 8.8%.	$135	$9,312	$34,816
Follow on Activity:
Initial Buy/Write:	Buy 200 shares of FIRST SOLAR INC (FSLR) at $38.45 (closing last trade price) and sell 2 call Out-of-the-Money contracts of FSLR1218B40 (Feb$40.00) at $2.30(closing bid price) expiring on 2/18/2012. Cost is $7,710, and income from sale of the calls is $447 and includes your commissions. Actual return if called at expiration is 9.6%.	$447	$7,710	$27,106
Follow on Activity:
Initial Buy/Write:	Buy 200 shares of DEUTSCHE BANK AG (DB) at $42.50 (closing last trade price) and sell 2 call Out-of-the-Money contracts of DB1218B45 (Feb$45.00) at $1.10(closing bid price) expiring on 2/18/2012. Cost is $8,520, and income from sale of the calls is $207 and includes your commissions. Actual return if called at expiration is 8.1%.	$207	$8,520	$18,586
Follow on Activity:
Initial Buy/Write:	Buy 200 shares of SODASTREAM INTERNATIONAL (SODA) at $38.21 (closing last trade price) and sell 2 call Out-of-the-Money contracts of SODA1218B40(Feb$40.00) at $1.45 (closing bid price) expiring on 2/18/2012. Cost is $7,662, and income from sale of the calls is $277 and includes your commissions. Actual return if called at expiration is 8.0%.	$277	$7,662	$10,924
Follow on Activity:
Initial Buy/Write:	Buy 200 shares of COINSTAR (CSTR) at $47.70 (closing last trade price) and sell 2 call Out-of-the-Money contracts of CSTR1218B50 (Feb$50.00) at $1.95 (closing bid price) expiring on 2/18/2012. Cost is $9,560, and income from sale of the calls is $377 and includes your commissions. Actual return if called at expiration is 8.5%.	$377	$9,560	$1,364
Follow on Activity:
Totals for January:		$3,327	$98,636	$1,364
Taking $2,000 out as income total leaves $1,317 that will be added to the cash balance:				$2,691
Portfolio value at February 18, 2012 (expiration weekend for January 21 buy/writes) is $108,716* after $2,000 taken as income in one month. Total return including income is $110,715, up +10.7%* The S&P500 average for the year so far is up 3.5%.

*After the effect of all commissions.

The stocks listed above are for illustrative and educational purposes only and should not be construed as an endorsement, recommendation, or solicitation to buy or sell any particular security.

Starting on January 21, 2012, Investment Enhancing Systems, Inc. started this $100,000 Conservative Retirement Portfolio and it will be monitored and updated each month throughout 2012. This portfolio assumes a $100,000 initial principle and that $2,000 will be taken out each month of the year for retirement income. This portfolio is started at the beginning of each calendar year. We start by running the Analyzer on the January expiration weekend with our default parameters and $10,000 for the money available. We assume efault commissions as $9.95 per stock trade and $9.95 per call trade plus $1.50 per contract. We do not consider stocks with high PE or negative earnings, making it a Conservative Retirement portfolio. Ten or eleven stocks are selected by the Analyzer as the basis for this portfolio, each with an initial cost of something less than $10,000 to produce a $100,000 portfolio. Extra cash is left in the portfolio for future use. We take $2,000 each month from the sale of the calls and use it for retirement income. The balance of the call premium goes back into the portfolio. We let the appreciation of called stocks remain in the portfolio to maintain the principal of the portfolio. When a stock is called, sold or the get-out price is exercised, the proceeds are used to buy more stocks and sell more calls after running the Analyzer the following month. If stocks are not called, we sell more out-of-the-money calls on those stocks to increase the income for that month or sell a stock if it does not have good call premiums. Our main objective is to maintain the $100,000 principle throughout the year while taking our the $2,000 each month for income. These activities are identified in our results for our $100,000 Retirement Portfolio on each subsequent expiration weekend. We have been publishing this portfolio since 2005.