Investment Enhancing Systems, Inc. – Covered Call Analyzer

$10,000 Monitored Aggressive Portfolio Trades for August 2005

	Call Premium	Cost	Balance
From Jul.			$856
400 shares of IIG purchased at $11.20 in June not called. Price at $10.63, Value at $4,252 on 7/16/05. Sell 4 Aug12.5 at $0.25. Exercised get-out price at $9.51 after buying back calls at 0.11. Proceeds $3,794 after commission. Cost to buy back calls ($60) after commission. Return ($636).	($60)		$4,590
300 shares of TELK purchased at $15.70 in June not called. Sell 3 Jul17.5 at $0.40. Not called. Price at $16.78, Value at $5,034 on 7/16/05. Sell 3 Aug17.5 at $0.80. Not called. Price at $15.17, Value at $4,551 on 8/20/05. Sell all shares at $15.17 to close out position. Proceeds $4,541 after commission.			$9,141
From Aggressive "Stocks-to-Consider" for August 20, 2005
Buy 300 shares of EYET at $13.99. Sell 3 Sep15 at $1.15.	$331	$4,207	$5,265
Buy 300 shares of HGSI at $13.43. Sell 3 Sep15 at $0.75.	$211	$4,039	$1,437
Totals for August:	$482		$1,437
Portfolio value at August 20, 2005 after selling the calls is $9,663. We will review results on the weekend of September 17, 2005 (expiration weekend) and make additional trades as dictated by the Covered Call Analyzer.

*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.

On March 16, 2005 (expiration weekend), Investment Enhancing Systems, Inc. initiated this $10,000 aggressive portfolio using the stocks identified in our Aggressive "Stocks-to-Consider" list by selecting buy/writes from the "Stocks with high or negative PE ratios" list. We have set the money available to $5,000 (the default value) and have reduced the commissions for purchasing the stock to $9.95 and selling the calls to $9.95 plus $1.50 per contract in our parameters page. Several low cost, on-line brokers offer these low commissions. Since it is an aggressive portfolio, we keep the premium income and stock price appreciation to the strike price in the portfolio. We update the portfolio each month on expiration weekend. Our objective is to maintain and grow the portfolio. The table below lists details of stocks bought and calls sold, and when we held the stock or exercised our get-out price (-15%). We anticipate good months and poor months, with a general gain at year end. Patience usually wins. Because this portfolio is limited in diversity, it will be much more difficult to realize the types of gains in our larger portfolios.

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