Investment Enhancing Systems, Inc. – Covered Call Analyzer

Covered Call Analyzer CONSERVATIVE "STOCKS-TO-CONSIDER"

for January, 2008

NOTE to Subscribers: Because of the anticipated volatility in the markets the week after expiration (January 19) we will not execute the buy/writes identified by the Analyzer this weekend. Instead, we will maintain the identified buy/writes and execute them when things settle down. We decided things had settled down enough by mid week and used the pricing after the close on Tuesday, the 22nd, and prepared our buy/writes for submission to out broker on Wednesday morning (January 23). This date is now the basis for this January List. We also decided to ride the volatility through the week (until January 28) by suspending our get-out rule (-15%).

Close Window

Company Name	Stock Symbol	Stock Price	# of shares	Total Cost*	Option Symbol	Feb Option Bid Price	Income from sale*	Strike Price	Projected return if Called after one month*	Actual $ return*	Actual % Return*
E-HOUSE CHINA HLDGS ADS	EJ	$17.77	500	$8,905	EJBD	$1.20	$583	20	19%	$8,815	-1.0%
Comments:	Not called on February 16, 2008 expiration weekend), price at $17.71, and value including call premium is $10,120, up +13.6%. Will now sell Mar20 at $1.40 expiring on March 22, 2008. Exercised get out price at $15.10 (-15%) on March 7 after buying back calls at $0.05.
SYNCHRONOSS TECHNOLOGIES	SNCR	$21.51	400	$8,624	QQRBE	$1.20	$464	25	22%	$7,796	-5.2%
Comments:	Not called on February 16, 2008 expiration weekend), price at $18.66, and value including call premium is $8,112, down (5.9%). Will now sell Mar22.5 at $0.50 expiring on March 22, 2008. Note that we have lowered the strike price since it is above the purchase price. Exercised get out price at $19.67 (-15%) on March 10 after buying back calls at $0.05.
CYPRESS SEMICONDUCTOR	CY	$23.14	400	$9,276	CYBE	$1.30	$504	25	13%	$7,960	-7.7%
Comments:	Not called on February 16, 2008 expiration weekend), price at $23.65, and value including call premium is $10,388, up +12.0%. Will now sell Mar25 at $1.10 expiring on March 22, 2008. Exercised get out price at $18.28 (-15%) on March 10 after buying back calls at $0.05.
DOWNEY FINANCIAL CORP	DSL	25.50	300	$7,670	DSLBF	$0.90	$256	30	21%	$7,495	-2.3%
Comments:	Not called on February 16, 2008 expiration weekend), price at $29.11, and value including call premium is $9,724, up +26.8%. Will now sell Mar30 at $2.50 expiring on March 22, 2008. Exercised get out price at $21.68 (-15%) on March 6 after buying back calls at $0.05.
W.R. GRACE & CO	GRA	$16.87	500	$8,455	GRABD	$0.80	$383	20	23%	$10,363	+22.6%
Comments:	Called on February 16, 2008 at $20.00.
DIANA SHIPPING INC	DSX	$22.43	400	$8,992	DSXBE	$1.00	$384	25	16%	$10,364	+15.3%
Comments:	Called on February 16, 2008 at $25.00.
CHILDREN'S PLACE RTL STR	PLCE	$15.63	600	$9,398	TUYW	$0.65	$371	17.5	16%	$10,851	+15.5%
Comments:	Called on February 16, 2008 at $17.50.
SHANDA INTERACTV ENT LTD	SNDA	$26.70	300	$8,030	QKUBF	$0.90	$256	30	16%	$8,695	+8.3%
Comments:	Not called on February 16, 2008 expiration weekend), price at $28.26, and value including call premium is $9,169, up +14.2%. Will now sell Mar30 at $1.50 expiring on March 22, 2008. Not called on March 22, 2008 (expiration weekend). Sold all shares at $26.68 to close out position.
GIGAMEDIA LIMITED	GIGM	$14.92	600	$8,972	GBUBW	$0.45	$251	17.5	20%	$10,731	+19.5%
Comments:	Called on February 16, 2008 at $17.50.
NETFLIX INC	NFLX	$22.31	400	$8,944	QNQBE	$0.80	$304	25	15%	$10,284	+15.0%
Comments:	Called on February 16, 2008 at $25.00.
Income from sale of calls is +$6,216.
All Positions closed out in March, 2008. Cost of these ten (10) stocks is $87,266 At March 22, 2008 (expiration weekend), this list value is $94,354, up 8.1%.

*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.

top