Investment Enhancing Systems, Inc. – Covered Call Analyzer

Covered Call Analyzer AGGRESSIVE "STOCKS-TO-CONSIDER"

for July, 2007

NOTE: We had temporarily suspended out get-out rule (at -15%) between July 25 and September 22, 2007 because of the volatility in the markets. We have reinstated the get-out rule effective September 22 (expiration weekend). Any open positions on any list or portfolio will be sold if their price drops 15% below the stock price at September 22.

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Company Name	Stock Symbol	Stock Price	# of shares	Total Cost*	Option Symbol	Aug Option Price	Income from sale*	Strike Price	Projected return if Called after one month*	Actual $ return*	Actual % Return*
AMER HOME MORTGAGE I	AHM	$12.80	700	$8,980	AHMHC	$0.75	$505	15	23%	($8,105)	-90%
Comments:	This company went bankrupt as a result of the sub-prime mortgage blowup on August 10. This stock now trades with the symbol AHMMQ.PK . We will continue to hold this stock even though it has minimal value, to see if comes out of bankruptcy. Price at $0.40 at 8/18/2007. Price at $0.95at 9/22/2007. Sold all shares at $0.50 10/19/2007 to close out position.
FLAMEL TECHNOLOGIES	FLML	$21.50	400	$8,620	FLUHE	$0.55	$204	25	18%	($4,872)	-57%
Comments:	Not called in August. Price at $12.24 on 8/18/2007. Will now sell Sep15 at $0.30. Note that we have lowered the strike price. Not called in September. Price at $9.81on 9/22/2007. Will now sell Oct12.5 at $0.25. Exercised get-out price at $8.34 on October 19 after buying back calls at $0.05.
NETFLIX INC.	NFLX	$19.63	500	$9,835	QNQHX	$0.45	$208	22.5	16%	+$713	+7%
Comments:	Not called in August. Price at $17.24 on 8/18/2007. Will now sell Sep20 at $0.20. Note that we have lowered the strike price. Not called in September. Price at $19.19 on 9/22/2007. Will now sell Oct20 at $0.55. Not called in October. Called in October at $20.00.
ISIS PHARMACEUTICALS	ISIS	$11.04	900	$9,956	QISHV	$0.30	$247	12.5	15%	+$1,967	+20%
Comments:	Not called in August. Price at $11.90 on 8/18/2007. Will now sell Sep12.5 at $0.50. Called in September at $12.50.
ONYX PHARMACEUTICALS	ONXX	$26.77	300	$8,051	OIQHF	$0.60	$166	30	14%	+$1,115	+14%
Comments:	Called in August at $30.00.
STILLWATER MINING CO	SWC	$11.25	800	$9,020	SWCHV	$0.30	$218	12.5	13%	($624)	-7%
Comments:	Not called in August. Price at $8.57 on 8/18/2007. Will now sell Sep10 at $0.25. Note that we have lowered the strike price. Called in September at $10.00.
VEECO INSTRUMENTS I	VECO	$20.91	400	$8,384	QVCHX	$0.70	$264	22.5	11%	($916)	-11%
Comments:	Not called in August. Price at $16.79 on 8/18/2007. Will now sell Sep17.5 at $0.55. Note that we have lowered the strike price. Called in September at $17.50.
SIRF TECHNOLOGY HOLD	SIRF	$23.51	400	$9,424	QIRHE	$1.00	$384	25	10%	+$88	+1%
Comments:	Not called in August. Price at $18.75 on 8/18/2007. Will now sell Sep22.5 at $0.20. Note that we have lowered the strike price. Not called in September. Price at $18.70 on 9/22/2007. Will now sell Oct22.5 at $0.20. Called in October at $22.50.
OPEN TEXT CORPORATION	OTEX	$21.16	400	$8,484	QFTHX	$0.70	$264	22.5	9%	+$1,044	+12%
Comments:	Not called in August. Price at $19.31 on 8/18/2007. Will now sell Sep22.5 at $0.70. Called in September at $22.50.
GIVEN IMAGING LTD.	GIVN	$28.54	300	$8,582	QPGHF	$1.10	$316	30	9%	($383)	-7%
Comments:	Not called in August. Price at $25.49 on 8/18/2007. Will now sell Sep30 at $0.10. Not called in September. Price at $26.16 on 9/22/2007. Sold all shares at $26.16 to close out position.
Income from sale of calls is +$4,518.
All positions closed out in October. Cost of these ten (10) stocks is $89,336. Return from premiums and appreciation is down ($9,973). Real return is -11.2% ($9,973)/$89,336).

*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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