Investment Enhancing Systems, Inc. – Covered Call Analyzer

Covered Call Analyzer AGGRESSIVE "STOCKS-TO-CONSIDER"

for April, 2007

The markets took a major hit in July and August. As a result, some of the stocks still held from this list were hit pretty hard. Our objective is to recover from these drops by minimizing losses, even though we may need to suspend our get-out rule and consider lowering the strike price to below our purchase price.

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Company Name	Stock Symbol	Stock Price	# of shares	Total Cost*	Option Symbol	May. Option Price	Income from sale*	Strike Price	Projected return if Called after one month*	Actual $ return*	Actual % Return*
PENWEST PHARM.	PPCO	$11.40	800	$9,140	OGQEV	$0.65	$498	12.5	14%	+$1,358	+14%
Comments:	Called in May at $12.50.
PALOMAR MEDICAL TECH	PMTI	$38.23	200	$7,666	HKQEH	$1.50	$287	40	8%	($789)	-10%
Comments:	Not called in May. Price at $39.38 on 5/19/2007. Sold sell Jun40 at $1.40. Not called in June. Price at $35.09 on 6/16/2007. Holding. Price at $38.41 on 7/21/2007. Will now sell Aug40 at $1.35. Not called in August. Price at $30.23 on 8/18/2007. Sold all shares at $30.23 to closed out position at August expiration.
ALKERMES INC.	ALKS	$16.96	500	$8,500	QALEW	$0.65	$308	17.5	6%	($697)	-8%
Comments:	Not called in May. Price at $17.08 on 5/19/2007. Sold Jun17.5 at $0.65. Exercised get-out price at $14.42 (-15%) on June 12, after buying back calls at $0.05.
CONTINENTAL AIRLINES	CAL	$38.92	200	$7,804	CALEH	$1.50	$287	40	6%	($657)	-8%
Comments:	Not called in May. Price at $38.21 on 5/19/2007. Sold Jun40 at $1.30. Exercised get-out price at $33.08 (-15%) on June 13, after buying back calls at $0.05.
TRIDENT MICROSYSTEMS	TRID	$21.98	400	$8,812	HVUEX	$0.75	$284	22.5	5%	($964)	-11%
Comments:	Not called in May. Price at $20.49 on 5/19/2007. Sold Jun22.5 at $0.25. Not called in June. Price at $19.35 on 6/16/2007. Sold Jul22.5 at $0.10. Exercised get-out price at $18.68 (-15%) on June 26, after buying back calls at $0.05.
GENERAL MOTORS CORP	GM	$31.68	300	$9,524	GMEZ	$0.90	$256	32.5	5%	+$692	+7%
Comments:	Not called in May. Price at $31.45 on 5/19/2007. Sold Jun32.5 at $0.75. Called in June at $32.50.
LIMITED BRANDS INC.	LTD	$26.86	300	$8,078	LTDEY	$0.75	$211	27.5	5%	($470)	-6%
Comments:	Not called in May. Price at $26.21 on 5/19/2007. Sold Jun27.5 at $0.50. Not called in June. Price at $26.23 on 6/16/2007. Sold Jul27.5 at $0.35. Not called in July. Price at $26.99 on 7/21/2007. Will now sell Aug27.5 at $0.65. Not called in August. Price at $22.06 on 8/18/2007. Will now sell Sep22.5 at $0.85. Note that we have lowered the strike price. Called in September at $22.50.
NETFLIX INC.	NFLX	$22.10	400	$8,860	QNQEX	$0.60	$224	22.5	4%	($740)	-8%
Comments:	Not called in May. Price at $21.94 on 5/19/2007. Sold Jun22.5 at $0.60. Not called in June. Price at $19.71 on 6/16/2007. Sold Jul22.5 at $0.40. Not called in July. Price at $19.63 on 7/21/2007. Will now sell Aug22.5 at $0.45. Not called in August. Price at $17.24 on 8/18/2007. Will now sell Sep17.5 at $0.95. Note that we have lowered the strike price. Called in September at $22.50.
BJ SERVICES COMPANY	BJS	$29.73	300	$8,939	BJSEF	$1.05	$301	30	4%	+$362	+4%
Comments:	Called in May at $30.00.
TOLL BROTHERS INC.	TOL	$29.62	300	$8,906	TOLEF	$0.85	$241	30	4%	($975)	-11%
Comments:	Not called in May. Price at $28.55 on 5/19/2007.Sold Jun30 at $0..45. Not called in June. Price at $27.22 on 6/16/2007. Sold Jul30 at $0.20. Exercised get-out price at $25.18 (-15%) on July 10, after buying back calls at $0.05.
Income from sale of calls is +$5,871.
All positions closed out in September, 2007.Cost of these ten (10) stocks is $86,229. All positions closed out with return from premiums and appreciation down ($2,860). Real return is -3.3% (($2,860)/$86,229).

*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.

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