Covered Call Analyzer AGGRESSIVE "STOCKS-TO-CONSIDER"    

  for April, 2007

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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.

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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