Covered Call Analyzer from Investment Enhancing Systems, Inc.

The Covered Call Analyzer

$10,000 Monitored Aggressive Portfolio Trades for August 21, 2010

This is a rolling portfolio and we will look at open positions and make new trades using monies from called and sold positions each month on expiration weekend. The statements starting "Buy...." is what the Covered Call Analyzer tells you to do after finding the best buy/writes and calculating the values.

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Call Premium Cost Balance

From July: $335

From Aggressive "Stocks-to-Consider" for June 19, 2010 and putting $2,000 in the money available field

Buy 200 shares of MEDICINES (MDCO) at $7.85 (closing last trade price) and sell 2 call Out-of-the-Money contracts of MDCO1017G10 (Jul$10.00) at $0.55 (closing bid price) expiring on 7/17/2010. Cost is $1,580, and income from sale of the calls is $97 and includes your commissions. Annualized return if called is 427%. Not called on July 17. Will now sell Aug10 at $0.40. Price at $8.00 and value at $1,764, up 11.7% on July 17 including sale of all calls. Called on August 21 at $10.00. Proceeds $1,990 after commission. Final value including sale of all calls is $2,154, up 36.3%
$2,325

From Aggressive "Stocks-to-Consider" for July 17, 2010 and putting $2,000 in the money available field

Buy 200 shares of SIGA TECHNOLOGIES (SIGA) at $7.92 (closing last trade price) and sell 2 call Out-of-the-Money contracts of SIGA1021H10 (Aug$10.00) at $0.35 (closing bid price) expiring on 8/21/2010. Cost is $1,594, and income from sale of the calls is $57 and includes your commissions. Actual return if called at expiration is 29%. Not called on August 21. Will now sell Sep10 at $0.30. Price at $7.60 and value at $1,624, up 1.9%, including sale of all calls.
$47 $2,372

Buy 100 shares of BRIDGEPOINT EDUCATION (BPI) at $15.70 (closing last trade price) and sell 1 call Out-of-the-Money contracts of BPI1021H17.5 (Aug$17.50) at $0.85 (closing bid price) expiring on 8/21/2010. Cost is $1,580, and income from sale of the calls is $74 and includes your commissions. Actual return if called at expiration is 15% .Exercised get-out price at $13.35 (-15%) on August 17 after buying back calls at $0.05. Proceeds $1,325 after commission. Final value including sale of all calls is $1,392, down (11.9%).
($17) $3,680

Buy 200 shares of US AIRWAYS GROUP (LCC) at $8.95 (closing last trade price) and sell 2 call Out-of-the-Money contracts of LCC1021H10 (Aug$10.00) at $0.40 (closing bid price) expiring on 8/21/2010. Cost is $1,800, and income from sale of the calls is $67 and includes your commissions. Actual return if called at expiration is 15%. Not called on August 21. Will now sell Sep10 at $0.31. Price at $9.10 and value at $1,936, up 7.6%, including sale of all calls.
$49 $3,729

Buy 200 shares of POWER-ONE (PWER) at $8.50 (closing last trade price) and sell 2 call Out-of-the-Money contracts of PWER1021H10 (Aug$10.00) at $0.40 (closing bid price) expiring on 8/21/2010. Cost is $1,710, and income from sale of the calls is $67 and includes your commissions. Actual return if called at expiration is 21%. Called on August 21 at $10.00. Proceeds $1,990 after commission. Final value including sale of all calls is $2,057, up 20.3%
$5,729

Buy 100 shares of MCMORAN EXPLORATION (MMR) at $10.78 (closing last trade price) and sell 1 call Out-of-the-Money contracts of MMR1021H12.5 (Aug$12.50) at $0.35 (closing bid price) expiring on 8/21/2010. Cost is $1,088, and income from sale of the calls is $24 and includes your commissions. Actual return if called at expiration is 17%. Not called on August 21. Will now sell Sep12.5 at $0.58. Price at $11.63 and value at $1,233, up 13.3%, including sale of all calls.
$46 $5,765

Buy 300 shares of MELA SCIENCES INC (MELA) at $6.61 (closing last trade price) and sell 3 call Out-of-the-Money contracts of MELA1021H7.5 (Aug$7.50) at $0.30 (closing bid price) expiring on 8/21/2010. Cost is $1,993, and income from sale of the calls is $76 and includes your commissions. Actual return if called at expiration is 17%. Not called on August 21. Price at $6.86 and value at $2,134, up 7.1%, including sale of all calls. Sold all shares at $6.86 to close out position on August 21. Proceeds $2,048 after commission.
$7,813

Buy 100 shares of OVERSTOCK.COM (OSTK) at $17.86 (closing last trade price) and sell 1 call Out-of-the-Money contracts of OSTK1021H20 (Aug$20.00) at $0.80 (closing bid price) expiring on 8/21/2010. Cost is $1,796, and income from sale of the calls is $69 and includes your commissions. Actual return if called at expiration is 15%. Exercised get-out price at $15.81 (-15%) on August 9 after buying back calls at $0.05. Proceeds $1,571 after commission. Final value including sale of all calls is $1,633, down (9.1%).
($17) $9,384

Buy 100 shares of PATRIOT COAL (PCX) at $11.73 (closing last trade price) and sell 1 call Out-of-the-Money contracts of PCX1021H14 (Aug$14.00) at $0.25 (closing bid price) expiring on 8/21/2010. Cost is $1,183, and income from sale of the calls is $14 and includes your commissions. Actual return if called at expiration is 20%. Not called on August 21. Will now sell Sep12 at $0.52. Price at $11.44 and value at $1,198, up 1.3%, including sale of all calls. Note that we have lowered the strike price, that is still above the purchase price.
$40 $9,424

From Aggressive "Stocks-to-Consider" for August 21, 2010 and putting $2,000 in the money available field

Buy 200 shares of ARENA PHARMACEUTICALS (ARNA) at $6.93 (closing last trade price) and sell 2 call Out-of-the-Money contracts of ARNA1018I10 (Sep$10.00) at $0.80 (closing bid price) expiring on 9/18/2010. Cost is $1,396, and income from sale of the calls is $147 and includes your commissions. Actual return if called at expiration is 53.8%. RISKY!!!
$147 $1,396 $8,135

Buy 100 shares of DIREXION DAILY FINANCIAL BUL (FAS) at $18.99 (closing last trade price) and sell 1 call Out-of-the-Money contracts of FAS1018I20 (Sep$20.00) at $1.21 (closing bid price) expiring on 9/18/2010. Cost is $1,909, and income from sale of the calls is $110 and includes your commissions. Actual return if called at expiration is 10.5%.
$110 $1,909 $6,336

Buy 200 shares of L-1 IDENTITY SOLUTIONS (ID) at $9.02 (closing last trade price) and sell 2 call Out-of-the-Money contracts of ID1018I10 (Sep$10.00) at $0.50 (closing bid price) expiring on 9/18/2010. Cost is $1,814, and income from sale of the calls is $87 and includes your commissions. Actual return if called at expiration is 15.1%.
$87 $1,814 $4,609

Buy 100 shares of SAVIENT PHARMACEUTICALS (SVNT) at $14.80 (closing last trade price) and sell 1 call Out-of-the-Money contracts of SVNT1018I16 (Sep$16.00) at $1.59 (closing bid price) expiring on 9/18/2010. Cost is $1,490, and income from sale of the calls is $148 and includes your commissions. Actual return if called at expiration is 17.3%. RISKY!!!
$148 $1,490 $3,267

Buy 200 shares of L & L ENERGY (LLEN) at $9.28 (closing last trade price) and sell 2 call Out-of-the-Money contracts of LLEN1018I10 (Sep$10.00) at $0.40 (closing bid price) expiring on 9/18/2010. Cost is $1,866, and income from sale of the calls is $67 and includes your commissions. Actual return if called at expiration is 10.8%.
$67 $1,866 $1,468

Buy 100 shares of OFFICEMAX (OMX) at $11.14 (closing last trade price) and sell 1 call Out-of-the-Money contracts of OMX1018I12.5 (Sep$12.50) at $0.25 (closing bid price) expiring on 9/18/2010. Cost is $1,124, and income from sale of the calls is $14 and includes your commissions. Actual return if called at expiration is 12.5%.
$14 $1,124 $358

Totals for July:
$721 $9,599 $358

Portfolio value at August 21, 2010 is $15,544*, up +55.4%. The S&P500 average for the year so far is down (5.7%).

*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 16, 2010 (expiration weekend), Investment Enhancing Systems, Inc. initiated a new $10,000 aggressive portfolio for 2010, 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 $2,000 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 and sold more calls 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.

	Call Premium	Cost	Balance
From July:			$335
From Aggressive "Stocks-to-Consider" for June 19, 2010 and putting $2,000 in the money available field
Buy 200 shares of MEDICINES (MDCO) at $7.85 (closing last trade price) and sell 2 call Out-of-the-Money contracts of MDCO1017G10 (Jul$10.00) at $0.55 (closing bid price) expiring on 7/17/2010. Cost is $1,580, and income from sale of the calls is $97 and includes your commissions. Annualized return if called is 427%. Not called on July 17. Will now sell Aug10 at $0.40. Price at $8.00 and value at $1,764, up 11.7% on July 17 including sale of all calls. Called on August 21 at $10.00. Proceeds $1,990 after commission. Final value including sale of all calls is $2,154, up 36.3%			$2,325
From Aggressive "Stocks-to-Consider" for July 17, 2010 and putting $2,000 in the money available field
Buy 200 shares of SIGA TECHNOLOGIES (SIGA) at $7.92 (closing last trade price) and sell 2 call Out-of-the-Money contracts of SIGA1021H10 (Aug$10.00) at $0.35 (closing bid price) expiring on 8/21/2010. Cost is $1,594, and income from sale of the calls is $57 and includes your commissions. Actual return if called at expiration is 29%. Not called on August 21. Will now sell Sep10 at $0.30. Price at $7.60 and value at $1,624, up 1.9%, including sale of all calls.	$47		$2,372
Buy 100 shares of BRIDGEPOINT EDUCATION (BPI) at $15.70 (closing last trade price) and sell 1 call Out-of-the-Money contracts of BPI1021H17.5 (Aug$17.50) at $0.85 (closing bid price) expiring on 8/21/2010. Cost is $1,580, and income from sale of the calls is $74 and includes your commissions. Actual return if called at expiration is 15% .Exercised get-out price at $13.35 (-15%) on August 17 after buying back calls at $0.05. Proceeds $1,325 after commission. Final value including sale of all calls is $1,392, down (11.9%).	($17)		$3,680
Buy 200 shares of US AIRWAYS GROUP (LCC) at $8.95 (closing last trade price) and sell 2 call Out-of-the-Money contracts of LCC1021H10 (Aug$10.00) at $0.40 (closing bid price) expiring on 8/21/2010. Cost is $1,800, and income from sale of the calls is $67 and includes your commissions. Actual return if called at expiration is 15%. Not called on August 21. Will now sell Sep10 at $0.31. Price at $9.10 and value at $1,936, up 7.6%, including sale of all calls.	$49		$3,729
Buy 200 shares of POWER-ONE (PWER) at $8.50 (closing last trade price) and sell 2 call Out-of-the-Money contracts of PWER1021H10 (Aug$10.00) at $0.40 (closing bid price) expiring on 8/21/2010. Cost is $1,710, and income from sale of the calls is $67 and includes your commissions. Actual return if called at expiration is 21%. Called on August 21 at $10.00. Proceeds $1,990 after commission. Final value including sale of all calls is $2,057, up 20.3%			$5,729
Buy 100 shares of MCMORAN EXPLORATION (MMR) at $10.78 (closing last trade price) and sell 1 call Out-of-the-Money contracts of MMR1021H12.5 (Aug$12.50) at $0.35 (closing bid price) expiring on 8/21/2010. Cost is $1,088, and income from sale of the calls is $24 and includes your commissions. Actual return if called at expiration is 17%. Not called on August 21. Will now sell Sep12.5 at $0.58. Price at $11.63 and value at $1,233, up 13.3%, including sale of all calls.	$46		$5,765
Buy 300 shares of MELA SCIENCES INC (MELA) at $6.61 (closing last trade price) and sell 3 call Out-of-the-Money contracts of MELA1021H7.5 (Aug$7.50) at $0.30 (closing bid price) expiring on 8/21/2010. Cost is $1,993, and income from sale of the calls is $76 and includes your commissions. Actual return if called at expiration is 17%. Not called on August 21. Price at $6.86 and value at $2,134, up 7.1%, including sale of all calls. Sold all shares at $6.86 to close out position on August 21. Proceeds $2,048 after commission.			$7,813
Buy 100 shares of OVERSTOCK.COM (OSTK) at $17.86 (closing last trade price) and sell 1 call Out-of-the-Money contracts of OSTK1021H20 (Aug$20.00) at $0.80 (closing bid price) expiring on 8/21/2010. Cost is $1,796, and income from sale of the calls is $69 and includes your commissions. Actual return if called at expiration is 15%. Exercised get-out price at $15.81 (-15%) on August 9 after buying back calls at $0.05. Proceeds $1,571 after commission. Final value including sale of all calls is $1,633, down (9.1%).	($17)		$9,384
Buy 100 shares of PATRIOT COAL (PCX) at $11.73 (closing last trade price) and sell 1 call Out-of-the-Money contracts of PCX1021H14 (Aug$14.00) at $0.25 (closing bid price) expiring on 8/21/2010. Cost is $1,183, and income from sale of the calls is $14 and includes your commissions. Actual return if called at expiration is 20%. Not called on August 21. Will now sell Sep12 at $0.52. Price at $11.44 and value at $1,198, up 1.3%, including sale of all calls. Note that we have lowered the strike price, that is still above the purchase price.	$40		$9,424
From Aggressive "Stocks-to-Consider" for August 21, 2010 and putting $2,000 in the money available field
Buy 200 shares of ARENA PHARMACEUTICALS (ARNA) at $6.93 (closing last trade price) and sell 2 call Out-of-the-Money contracts of ARNA1018I10 (Sep$10.00) at $0.80 (closing bid price) expiring on 9/18/2010. Cost is $1,396, and income from sale of the calls is $147 and includes your commissions. Actual return if called at expiration is 53.8%. RISKY!!!	$147	$1,396	$8,135
Buy 100 shares of DIREXION DAILY FINANCIAL BUL (FAS) at $18.99 (closing last trade price) and sell 1 call Out-of-the-Money contracts of FAS1018I20 (Sep$20.00) at $1.21 (closing bid price) expiring on 9/18/2010. Cost is $1,909, and income from sale of the calls is $110 and includes your commissions. Actual return if called at expiration is 10.5%.	$110	$1,909	$6,336
Buy 200 shares of L-1 IDENTITY SOLUTIONS (ID) at $9.02 (closing last trade price) and sell 2 call Out-of-the-Money contracts of ID1018I10 (Sep$10.00) at $0.50 (closing bid price) expiring on 9/18/2010. Cost is $1,814, and income from sale of the calls is $87 and includes your commissions. Actual return if called at expiration is 15.1%.	$87	$1,814	$4,609
Buy 100 shares of SAVIENT PHARMACEUTICALS (SVNT) at $14.80 (closing last trade price) and sell 1 call Out-of-the-Money contracts of SVNT1018I16 (Sep$16.00) at $1.59 (closing bid price) expiring on 9/18/2010. Cost is $1,490, and income from sale of the calls is $148 and includes your commissions. Actual return if called at expiration is 17.3%. RISKY!!!	$148	$1,490	$3,267
Buy 200 shares of L & L ENERGY (LLEN) at $9.28 (closing last trade price) and sell 2 call Out-of-the-Money contracts of LLEN1018I10 (Sep$10.00) at $0.40 (closing bid price) expiring on 9/18/2010. Cost is $1,866, and income from sale of the calls is $67 and includes your commissions. Actual return if called at expiration is 10.8%.	$67	$1,866	$1,468
Buy 100 shares of OFFICEMAX (OMX) at $11.14 (closing last trade price) and sell 1 call Out-of-the-Money contracts of OMX1018I12.5 (Sep$12.50) at $0.25 (closing bid price) expiring on 9/18/2010. Cost is $1,124, and income from sale of the calls is $14 and includes your commissions. Actual return if called at expiration is 12.5%.	$14	$1,124	$358
Totals for July:	$721	$9,599	$358
Portfolio value at August 21, 2010 is $15,544*, up +55.4%. The S&P500 average for the year so far is down (5.7%).