The Covered Call Analyzer
$10,000 Monitored Aggressive Portfolio Trades for January 17, 2009
This is the start of a new year
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.
The statements starting "Buy...." is what the Covered Call Analyzer tells you to
do after finding the best buy/writes and calculating the values.
NOTE: Because the markets tanked
on Tuesday, January 20 (Inauguration Day), the first day of trading after
publishing this list, we held off placing trades until about midday. We show our
actual trades after the suggested trades listed below and have modified the
trade values accordingly.
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Buy
100 shares of
LINCOLN NATIONAL CORP
(LNC)
at $18.21 (closing last trade price) and sell 1 call Out-of-the-Money
contracts of LNC BD (Feb$20.00) at $2.00 (closing bid price) expiring on
2/21/2009. Cost is
$1,831, and income from sale of
the calls is $189 and includes your commissions. Annualized return if
called is 197%.
ACTUAL:
Bought
100 shares of
LINCOLN NATIONAL CORP
(LNC)
at $16.37 (closing last trade price) and sell 1 call Out-of-the-Money
contracts of LNC BD (Feb$20.00) at $1.50 (closing bid price) expiring on
2/21/2009. Cost is
$1,647, and income from sale of
the calls is $139 and includes your commissions.
Buy
300 shares of
DEVELOPERS DIVERSIFIED
(DDR)
at $6.28 (closing last trade price) and sell 3 call Out-of-the-Money
contracts of DDR BU (Feb$7.50) at $0.60 (closing bid price) expiring on
2/21/2009. Cost is
$1,894, and income from sale
of the calls is $166 and includes your commissions. Annualized return if
called is 280%.
ACTUAL:
Bought
300 shares of
DEVELOPERS DIVERSIFIED
(DDR)
at $5.63 (closing last trade price) and sell 3 call Out-of-the-Money
contracts of DDR BU (Feb$7.50) at $0.45 (closing bid price) expiring on
2/21/2009. Cost is
$1,699, and income from sale
of the calls is $121 and includes your commissions.
Buy
300 shares of
KEYCORP
(KEY)
at $6.31 (closing last trade price) and sell 3 call Out-of-the-Money
contracts of KEY BU (Feb$7.50) at $0.55 (closing bid price) expiring on
2/21/2009. Cost is
$1,903, and income from sale of
the calls is $151 and includes your commissions. Annualized return if
called is 266%.
ACTUAL:
Bought
300 shares of
KEYCORP
(KEY)
at $6.29 (closing last trade price) and sell 3 call Out-of-the-Money
contracts of KEY BU (Feb$7.50) at $0.55 (closing bid price) expiring on
2/21/2009. Cost is
$1,897, and income from sale of
the calls is $151 and includes your commissions.
Buy
200 shares of
EXCO RESOURCES INC
(XCO)
at $8.84 (closing last trade price) and sell 2 call Out-of-the-Money
contracts of XCO BB (Feb$10.00) at $0.80 (closing bid price) expiring on
2/21/2009. Cost is
$1,778, and income from sale of
the calls is $147 and includes your commissions. Annualized return if
called is 209%.
ACTUAL:
Bought
200 shares of
EXCO RESOURCES INC
(XCO)
at $8.21 (closing last trade price) and sell 2 call Out-of-the-Money
contracts of XCO BB (Feb$10.00) at $0.70 (closing bid price) expiring on
2/21/2009. Cost is
$1,652, and income from sale of
the calls is $127 and includes your commissions.
Buy
300 shares of
SANDRIDGE ENERGY INC
(SD)
at $6.57 (closing last trade price) and sell 3 call Out-of-the-Money
contracts of SD BU (Feb$7.50) at $0.50 (closing bid price) expiring on
2/21/2009. Cost is
$1,981, and income from sale of
the calls is $136 and includes your commissions. Annualized return if
called is 207%.
ACTUAL:
Bought
300 shares of
SANDRIDGE ENERGY INC
(SD)
at $6.15 (closing last trade price) and sell 3 call Out-of-the-Money
contracts of SD BU (Feb$7.50) at $0.55 (closing bid price) expiring on
2/21/2009. Cost is
$1,854, and income from sale of
the calls is $150 and includes your commissions.
Buy
100 shares of
UAL CORP
(UAUA)
at $11.95 (closing last trade price) and sell 1 call Out-of-the-Money
contracts of UAL BV (Feb$12.50) at $1.45 (closing bid price) expiring on
2/21/2009. Cost is
$1,205, and income from sale of
the calls is $134 and includes your commissions. Annualized return if
called is 145%.
ACTUAL:
Bought
100 shares of
UAL CORP
(UAUA)
at $12.24 (closing last trade price) and sell 1 call Out-of-the-Money
contracts of UAL BC (Feb$15.00) at $0.70 (closing bid price) expiring on
2/21/2009. Cost is
$1,234, and income from sale of
the calls is $58 and includes your commissions.
Totals for
January:
*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 17, 2009 (expiration weekend), Investment Enhancing Systems, Inc.
initiated a new $10,000 aggressive portfolio for 2009, 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.
Call Premium
Cost
Balance
Beginning Cash:
$10,000
From Aggressive
"Stocks-to-Consider" for
January 17, 2009 and putting $2,000 in the money
available field
$139
$1,647
$8,492
$121
$1,699
$6,914
$151
$1,897
$5,168
$127
$1,652
$3,643
$150
$1,854
$1,939
$58
$1,234
$763
$746
$9,983
$763
Portfolio value at January 17 is
$10,687*,
up +6.9%.
The NASDAQ average for the year so far is up +0.0%