Investment Enhancing Systems, Inc. – Covered Call Analyzer

$10,000 Monitored Aggressive Portfolio Trades for December 2005

	Call Premium	Cost	Balance
From Nov.			$428
300 shares of SGTL purchased in October at $14.51. Sell 3 Nov15 at $0.75 not called in November. Price $13.53. Value at $4,059 on 11/18/2005. Sell Dec15 at 0.25 not called in December. Price $13.34. Value at $4,002 on 12/16/2005. Sell Jan15 at 0.30.	$76		$508
300 shares of ISPH purchased in November at $6.47. Sell 3 Dec7.5 at $0.80. Exercised get-out price at $5.50 after buying back calls at 0.12. Proceeds $1,640 after commission. Cost to buy back calls ($41) after commission. Return ($126).	($41)		$2,107
From Aggressive "Stocks-to-Consider" for December 17, 2005
Buy 300 shares of BIVN at $6.34. Sell 3 Dec7.5 at $0.40.	$106	$1,912	$301
Totals for December:	$141		$301
Portfolio value at December 16, 2005 after selling the calls is $6,225. We will review results on the weekend of January 21, 2006 (expiration weekend), close out this portfolio for 2005 and start a new one.
To close out Portfolio for 2005 on January expiration weekend (January 21, 2006)
Sell 300 shares of SGTL purchased in October at $14.51 for $13.50 to close out position. Proceeds $4,040 after commission.			$4,351
Sell 300 shares of BIVN purchased in December at $6.34 for $7.76 to close out position. Proceeds $2,328 after commission.			$6,679
Portfolio value at close out is $6,679.

*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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