Investment Enhancing Systems, Inc. – Covered Call Analyzer

$10,000 Monitored Aggressive Portfolio Trades for June 2005

	Call Premium	Cost	Balance
From May			$597
200 shares of EYET at $23.75 purchased in May. This stock tanked on May 24 on bad news dropping to $12.95. We could not exercise our get-out price because the stock price dropped so fast. Usually in these circumstances, there is a bounce in the stock price after such a tank. Therefore, we held the stock for several days and sold all shares at $13.50 to get out of position after buying back calls at $0.02. We want to use this money on another buy/write. Proceeds $2,690 after commissions. Cost to buy back calls ($17) after commissions. Return ($1,666).	($17)		$3,270
200 shares of IDCC purchased at $16.75 in May called at the strike price of $17.50. Proceeds $3,490 after commission. Return $447.			$6,760
100 shares of DWA purchased at $32.15 in May declined 15%. Exercised get-out price at $27.33 after buying back calls at 0.24. Proceeds $2,723 after commission. Cost to buy back calls ($37) after commission. Return ($539).	($37)		$9,446
From Aggressive "Stocks-to-Consider" for June 18, 2005
Buy 400 shares of IIG at $11.20. Sell 4 Jul12.5 at $0.55.	$204	$4,490	$5,160
Buy 300 shares of TELK at $15.70. Sell 3 Jul17.5 at $0.40.	$106	$4,720	$546
Totals for June	$256		$546
Portfolio value at June 18, 2005 after selling the calls is $9,756. We will review results on the weekend of July 16, 2005 (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 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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