Covered Call Analyzer from Investment Enhancing Systems, Inc.

The Covered Call Analyzer

$10,000 Monitored Aggressive Portfolio Trades for December 20, 2008

We suspended our get-out rule on September 15, 2008 due to volatility. They continue suspended for positions opened before October 18, 2008.

This is a rolling portfolio and we will look at open positions and make new trades using monies from called positions each month on expiration weekend.

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Call Premium Cost Balance

Balance from November: $290

From Aggressive "Stocks-to-Consider" for May 17, 2008 and putting $2,000 in the money available field

Buy 100 shares of MF GLOBAL LTD (MF) at $14.46 (closing last trade price) and sell 1 contracts of MF FC (Jun$15.00) at $1.10 (closing bid price) expiring on 6/21/2008. Cost is $1,456, and income from sale of the calls is $99 and includes your commissions. Annualized return if called is 102%. Stock tanked on June 19. Price at June 21 is $6.86. Decided to hold. Price at July 19 is $6.24 and value at $723, down (50.4%) . Continuing to hold. Price at August 16 is $7.34 and value at $734, down (42.8%) . Continuing to hold. Price at September 20 is $8.75 and value at $973, down (33.1%) . Continuing to hold. Price at $3.43 and value at $343 at 10/18/2008. Will now sell Nov5 at $0.25. Not called on November 22. Price at $1.91 and value at $191 at 11/22/2008. Will now sell Dec2.5 at $0.15. Note that we have lowered the strike price. Not called on December 20. Price at $2.05 and value at $205 at 12/20/2008. Will now sell Jan2.5 at $0.20. Called on January 17 at $2.50. Proceeds $240 after commission. Total return including call premium is $249, down (82.9%).
$530

From Aggressive "Stocks-to-Consider" for September 20, 2008 and putting $2,000 in the money available field

Buy 100 shares of UAL CORP (UAUA) at $13.24 (closing last trade price) and sell 1 call Out-of-the-Money contracts of UAL JC (Oct$15.00) at $2.05 (closing bid price) expiring on 10/18/2008. Cost is $1,344, and income from sale of the calls is $194 and includes your commissions. Annualized return if called is 340%. Not called on October 18. Price at $12.28 and value at $1,228 at 10/18/2008. Will now sell Nov15 at $1.65. Not called on November 22. Price at $7.67 and value at $767 at 11/22/2008. Will now sell Dec15 at $0.55. Not called on December 20. Price at $11.09 and value at $1,109 at 12/20/2008. Will now sell Jan12.5 at $1.15. Note that we have lowered the strike price. Not called on January 17. Sold all shares at $11.95 to close out position on January 17. Proceeds $1,185 after commission. Final value including sale of all calls is $1,298, down (3.9%)
$1,715

Buy 100 shares of HUNTSMAN CORP (HUN) at $10.88 (closing last trade price) and sell 1 call Out-of-the-Money contracts of HUN JV (Oct$12.50) at $1.95 (closing bid price) expiring on 10/18/2008. Cost is $1,108, and income from sale of the calls is $184 and includes your commissions. Annualized return if called is 384%. Not called on October 18. Price at $12.38 and value at $1,238 at 10/18/2008. Will now sell Nov12.5 at $3.00. Not called on November 22. Price at $6.54 and value at $654 at 11/22/2008. Will now sell Dec7.5 at $0.75. Note that we have lowered the strike price. Not called on December 20. Price at $3.46 and value at $346 at 12/20/2008. Will now sell Jan5 at $0.20. Note that we have lowered the strike price. Not called on January 17. Sold all shares at $3.11 to close out position on January 17. Proceeds $301 after commission. Final value including sale of all calls is $320, down (70.9%)
$2,016

Buy 100 shares of CONTINENTAL AIRLINES (CAL) at $18.40 (closing last trade price) and sell 1 call Out-of-the-Money contracts of CAL JD (Oct$20.00) at $1.95 (closing bid price) expiring on 10/18/2008. Cost is $1,860, and income from sale of the calls is $184 and includes your commissions. Annualized return if called is 227%. Not called on October 18. Price at $16.91 and value at $1,691 at 10/18/2008. Will now sell Nov20 at $1.25. Not called on November 22. Price at $11.30 and value at $1,130 at 11/22/2008. Will now sell Dec15 at $0.80. Note that we have lowered the strike price. Not called on December 20. Price at $16.93 and value at $1,693 at 12/20/2008. Will now sell Jan17.5 at $1.45. Note that we have lowered the strike price. Called on January 17 at $17.50. Proceeds $1,740 after commission. Total return including call premium is $1,874, up 1.3%.
$3,756

Buy 100 shares of TESSERA TECHNOLOGIES (TSRA) at $17.85 (closing last trade price) and sell 1 call Out-of-the-Money contracts of TJQ JD (Oct$20.00) at $1.40 (closing bid price) expiring on 10/18/2008. Cost is $1,805, and income from sale of the calls is $129 and includes your commissions. Annualized return if called is 234%. Not called on October 18. Price at $14.82 and value at $1,482 at 10/18/2008. Will now sell Nov17.5 at $1.05. Note that we have lowered the strike price. Not called on November 22. Price at $16.08 and value at $1,608 at 11/22/2008. Will now sell Dec17.5 at $1.45. Not called on December 20. Price at $11.97 and value at $1,197 at 12/20/2008. Will now sell Jan12.5 at $1.05. Note that we have lowered the strike price. Not called on January 17. Sold all shares at $11.32 to close out position on January 17. Proceeds $1,122 after commission. Final value including sale of all calls is $1,226, down (31.7%)
$4,878

From Aggressive "Stocks-to-Consider" for December 20, 2008 and putting $2,000 in the money available field

Buy 300 shares of CYPRESS BIOSCIENCE INC (CYPB) at $5.93 (closing last trade price) and sell 3 call Out-of-the-Money contracts of QGY AU (Jan$7.50) at $0.75 (closing bid price) expiring on 1/17/2009. Cost is $1,789, and income from sale of the calls is $211 and includes your commissions. Annualized return if called is 473%. Called on January 17 at $7.50. Proceeds $2,240 after commission. Total return including call premium is $2,451, up 37.0%.
$7,118

Buy 100 shares of INTERMUNE INC (ITMN) at $11.60 (closing last trade price) and sell 1 call Out-of-the-Money contracts of IQY AV (Jan$12.50) at $2.00 (closing bid price) expiring on 1/17/2009. Cost is $1,170, and income from sale of the calls is $189 and includes your commissions. Annualized return if called is 289%. RISKY!!! Exercised get-out price at $9.86 (-15%) on December 29 after buying back calls at $0.05. Proceeds $974 after commission and call buy back. Final value including sale of all calls is $1,175, up 0.4%.
$8,092

Buy 100 shares of MERITAGE HOME CORP (MTH) at $14.41 (closing last trade price) and sell 1 call Out-of-the-Money contracts of MTH AC (Jan$15.00) at $1.75 (closing bid price) expiring on 1/17/2009. Cost is $1,451, and income from sale of the calls is $164 and includes your commissions. Annualized return if called is 185%. Exercised get-out price at $12.25 (-15%) on December 22 after buying back calls at $0.05. Proceeds $1,198 after commission and call buy back. Final value including sale of all calls is $1,389, down (4.3%)..
$9,290

Totals for December:
$9,290

All positions closed out on January 17, 2009.

Portfolio value at January 17, 2009 is $9,290*, down (7.1%). The NASDAQ average for the year through January 17, 2009 was down (42.3%).

*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 19, 2008 (expiration weekend), Investment Enhancing Systems, Inc. initiated a new $10,000 aggressive portfolio for 2008, 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 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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	Call Premium	Cost	Balance
Balance from November:			$290
From Aggressive "Stocks-to-Consider" for May 17, 2008 and putting $2,000 in the money available field
Buy 100 shares of MF GLOBAL LTD (MF) at $14.46 (closing last trade price) and sell 1 contracts of MF FC (Jun$15.00) at $1.10 (closing bid price) expiring on 6/21/2008. Cost is $1,456, and income from sale of the calls is $99 and includes your commissions. Annualized return if called is 102%. Stock tanked on June 19. Price at June 21 is $6.86. Decided to hold. Price at July 19 is $6.24 and value at $723, down (50.4%) . Continuing to hold. Price at August 16 is $7.34 and value at $734, down (42.8%) . Continuing to hold. Price at September 20 is $8.75 and value at $973, down (33.1%) . Continuing to hold. Price at $3.43 and value at $343 at 10/18/2008. Will now sell Nov5 at $0.25. Not called on November 22. Price at $1.91 and value at $191 at 11/22/2008. Will now sell Dec2.5 at $0.15. Note that we have lowered the strike price. Not called on December 20. Price at $2.05 and value at $205 at 12/20/2008. Will now sell Jan2.5 at $0.20. Called on January 17 at $2.50. Proceeds $240 after commission. Total return including call premium is $249, down (82.9%).			$530
From Aggressive "Stocks-to-Consider" for September 20, 2008 and putting $2,000 in the money available field
Buy 100 shares of UAL CORP (UAUA) at $13.24 (closing last trade price) and sell 1 call Out-of-the-Money contracts of UAL JC (Oct$15.00) at $2.05 (closing bid price) expiring on 10/18/2008. Cost is $1,344, and income from sale of the calls is $194 and includes your commissions. Annualized return if called is 340%. Not called on October 18. Price at $12.28 and value at $1,228 at 10/18/2008. Will now sell Nov15 at $1.65. Not called on November 22. Price at $7.67 and value at $767 at 11/22/2008. Will now sell Dec15 at $0.55. Not called on December 20. Price at $11.09 and value at $1,109 at 12/20/2008. Will now sell Jan12.5 at $1.15. Note that we have lowered the strike price. Not called on January 17. Sold all shares at $11.95 to close out position on January 17. Proceeds $1,185 after commission. Final value including sale of all calls is $1,298, down (3.9%)			$1,715
Buy 100 shares of HUNTSMAN CORP (HUN) at $10.88 (closing last trade price) and sell 1 call Out-of-the-Money contracts of HUN JV (Oct$12.50) at $1.95 (closing bid price) expiring on 10/18/2008. Cost is $1,108, and income from sale of the calls is $184 and includes your commissions. Annualized return if called is 384%. Not called on October 18. Price at $12.38 and value at $1,238 at 10/18/2008. Will now sell Nov12.5 at $3.00. Not called on November 22. Price at $6.54 and value at $654 at 11/22/2008. Will now sell Dec7.5 at $0.75. Note that we have lowered the strike price. Not called on December 20. Price at $3.46 and value at $346 at 12/20/2008. Will now sell Jan5 at $0.20. Note that we have lowered the strike price. Not called on January 17. Sold all shares at $3.11 to close out position on January 17. Proceeds $301 after commission. Final value including sale of all calls is $320, down (70.9%)			$2,016
Buy 100 shares of CONTINENTAL AIRLINES (CAL) at $18.40 (closing last trade price) and sell 1 call Out-of-the-Money contracts of CAL JD (Oct$20.00) at $1.95 (closing bid price) expiring on 10/18/2008. Cost is $1,860, and income from sale of the calls is $184 and includes your commissions. Annualized return if called is 227%. Not called on October 18. Price at $16.91 and value at $1,691 at 10/18/2008. Will now sell Nov20 at $1.25. Not called on November 22. Price at $11.30 and value at $1,130 at 11/22/2008. Will now sell Dec15 at $0.80. Note that we have lowered the strike price. Not called on December 20. Price at $16.93 and value at $1,693 at 12/20/2008. Will now sell Jan17.5 at $1.45. Note that we have lowered the strike price. Called on January 17 at $17.50. Proceeds $1,740 after commission. Total return including call premium is $1,874, up 1.3%.			$3,756
Buy 100 shares of TESSERA TECHNOLOGIES (TSRA) at $17.85 (closing last trade price) and sell 1 call Out-of-the-Money contracts of TJQ JD (Oct$20.00) at $1.40 (closing bid price) expiring on 10/18/2008. Cost is $1,805, and income from sale of the calls is $129 and includes your commissions. Annualized return if called is 234%. Not called on October 18. Price at $14.82 and value at $1,482 at 10/18/2008. Will now sell Nov17.5 at $1.05. Note that we have lowered the strike price. Not called on November 22. Price at $16.08 and value at $1,608 at 11/22/2008. Will now sell Dec17.5 at $1.45. Not called on December 20. Price at $11.97 and value at $1,197 at 12/20/2008. Will now sell Jan12.5 at $1.05. Note that we have lowered the strike price. Not called on January 17. Sold all shares at $11.32 to close out position on January 17. Proceeds $1,122 after commission. Final value including sale of all calls is $1,226, down (31.7%)			$4,878
From Aggressive "Stocks-to-Consider" for December 20, 2008 and putting $2,000 in the money available field
Buy 300 shares of CYPRESS BIOSCIENCE INC (CYPB) at $5.93 (closing last trade price) and sell 3 call Out-of-the-Money contracts of QGY AU (Jan$7.50) at $0.75 (closing bid price) expiring on 1/17/2009. Cost is $1,789, and income from sale of the calls is $211 and includes your commissions. Annualized return if called is 473%. Called on January 17 at $7.50. Proceeds $2,240 after commission. Total return including call premium is $2,451, up 37.0%.			$7,118
Buy 100 shares of INTERMUNE INC (ITMN) at $11.60 (closing last trade price) and sell 1 call Out-of-the-Money contracts of IQY AV (Jan$12.50) at $2.00 (closing bid price) expiring on 1/17/2009. Cost is $1,170, and income from sale of the calls is $189 and includes your commissions. Annualized return if called is 289%. RISKY!!! Exercised get-out price at $9.86 (-15%) on December 29 after buying back calls at $0.05. Proceeds $974 after commission and call buy back. Final value including sale of all calls is $1,175, up 0.4%.			$8,092
Buy 100 shares of MERITAGE HOME CORP (MTH) at $14.41 (closing last trade price) and sell 1 call Out-of-the-Money contracts of MTH AC (Jan$15.00) at $1.75 (closing bid price) expiring on 1/17/2009. Cost is $1,451, and income from sale of the calls is $164 and includes your commissions. Annualized return if called is 185%. Exercised get-out price at $12.25 (-15%) on December 22 after buying back calls at $0.05. Proceeds $1,198 after commission and call buy back. Final value including sale of all calls is $1,389, down (4.3%)..			$9,290
Totals for December:			$9,290
All positions closed out on January 17, 2009. Portfolio value at January 17, 2009 is $9,290*, down (7.1%). The NASDAQ average for the year through January 17, 2009 was down (42.3%).