Investment Enhancing Systems, Inc. – Covered Call Analyzer

$10,000 Monitored Aggressive Portfolio Trades for August 2006

For August 2006		From Jul.	$596
200 shares of SNDA purchased in May at $14.32 not called in June. Price at $13.13, Value $2,626 on 6/17/06. Sell 2 Jul15 at $0.20. Not called in July. Price at $12.17, Value $2,434 on 7/22/06. Sell 2 Aug15 at $0.30. Called at a strike price of $15.00 in August. Proceeds $2,990 after commission.			$3,586
100 shares of MFE purchased in May at $24.00 not called in June. Price at $22.73. Value $2,273 on 6/17/06. Held, waiting for higher call price into July. Price at $22.80, Value $2,280 on 7/22/06. Sell 1 Aug25 at $0.40. Exercised get-out price at $20.40 (-15%) on August 7, after buying back calls at $0.05. Proceeds $2,030 after commission.	($12)		$5,604
100 shares of SIL purchased in June at $13.43 not called in July. Price at $13.43, Value $1,341 on 7/22/06. Sell 1 Jul15 at $0.35. Called at a strike price of $15.00 in August. Proceeds $1,490 after commission.			$7,094
100 shares of ENWV purchased in June at $11.92 not called in July. Price at $10.50, Value $1,150 on 7/22/06. Sell 1 Jul12.5 at $0.55. Called at a strike price of $12.50 in August. Proceeds $1,240 after commission.			$8,334
200 shares of TOMO purchased in July at $12.25 not called in July. Price at $10.50, Value $1,150 on 7/22/06. Sell 1 Jul12.5 at $0.55. Exercised get-out price at $10.41 (-15%) on August 10, after buying back calls at $0.05. Proceeds $2,072 after commission.	($13)		$10,406
100 shares of SIRF purchased in July at $23.51 not called in July. Price at $10.50, Value $1,150 on 7/22/06. Sell 1 Jul12.5 at $0.55. Stock tanked on July 26 and closed at $19.68 that day. We held the stock for one more week, hoping for a "bounce" and sold all shares at $19.23 on August 1. Proceeds $1,913 after commission.	($12)		$12,319
From Aggressive "Stocks-to-Consider" for August 19, 2006 and putting $3,000 in money available.
Buy 200 shares of RMBS at $11.95 (closing last trade price) and sell 2 contracts of BNQ IV (Sep$12.50 ) at $0.80 (closing bid price) expiring on 9/16/2006.	+$147	$2,400	$10,066
Buy 200 shares of KFX at $14.50 (closing last trade price) and sell 2 contracts of KFX IC (Sep$15.00 ) at $0.80 (closing bid price) expiring on 9/16/2006.	+$147	$2,910	$7,303
Buy 200 shares of MTEX at $14.02 (closing last trade price) and sell 2 contracts of RYQ IC (Sep$15.00 ) at $0.70 (closing bid price) expiring on 9/16/2006.	+$127	$2,814	$4,606
Buy 200 shares of AKS at $12.23 (closing last trade price) and sell 2 contracts of AKS IV (Sep$12.50 ) at $0.70 (closing bid price) expiring on 9/16/2006.	+$127	$2,456	$2,277
Buy 100 shares of TRID at $19.61 (closing last trade price) and sell 1 contracts of HVU ID (Sep$20.00 ) at $1.20 (closing bid price) expiring on 9/16/2006.	+$109	$1,971	$415
Totals for August:	+$620		$415
Portfolio value at August 19, 2006 after selling the calls is $12,916. We will review results on the weekend of September 16, 2006 (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 January 21, 2006 (expiration weekend), Investment Enhancing Systems, Inc. initiated a new $10,000 aggressive portfolio for 2006, This portfolio uses 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 above lists details of stocks bought and calls sold, and when we held the stock or exercised our get-out price. Note: In all of our lists and portfolios, we have established a get-out price which we exercise when the stock price drops 15%. If this happens during the month, we will get-out and report the sale of the stock and the buy-back of the calls at the next expiration weekend postings. 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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