The Covered Call Analyzer

 

$10,000 Monitored Aggressive Portfolio Trades for May 2008

see below

 

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 April: $237
From Aggressive "Stocks-to-Consider" for March 22, 2008 and putting $2,000 in the money available field      

Buy 100 shares of SLM at $15.78 and sell 1 contracts of SLM DW (Apr$17.50 ) at $1.15 expiring on 4/19/2008. Not called in April. Price at $17.20 and value at $1,720 at 4/19/2008. Will now sell May17.5 at $1.20. Called on May 17 at $17.50. Proceeds $1,740 after commission.

    $1,977

Buy 100 shares of MDCO at $18.20 and sell 1 contracts of MQL DD (Apr$20.00 ) at $1.30 expiring on 4/19/2008. Not called in April. Price at $18.02 and value at $1,802 at 4/19/2008. Will now sell May20 at $0.40. Not called in May. Price at $19.02 and value at $1,902 at 5/17/2008. Will now sell Jun20 at $0.90. 

$78 still own shares $2,055

Buy 100 shares of XMSR at $11.94 and sell 1 contracts of QSY DV (Apr$12.50 ) at $1.30 expiring on 4/19/2008. Not called in April. Price at $10.75 and value at $1,075 at 4/19/2008. Will now sell May12 at $0.25. Note that the strike price is now in $1.00 increments. Not called in May. Price at $11.91 and value at $1,191 at 5/17/2008. Will now sell Jun13 at $0.35.Note that we have raised strike price.

$23 still own shares $2,078

Buy 100 shares of IDCC at $19.46  (closing last trade price) and sell 1 contracts of DAQ DD (Apr$20.00 ) at $1.20 (closing bid price) expiring on 4/19/2008. Not called in April. Price at $18.82 and value at $1,882 at 4/19/2008. Will now sell May20 at $0.80. Called on May 17 at $20.00. Proceeds $1,990 after commission.

    $4,068
From Aggressive "Stocks-to-Consider" for April 19, 2008 and putting $2,000 in the money available field      

Buy 100 shares of GTX INC (GTXI) at $14.98  (closing last trade price) and sell 1 contracts of GQH EW (May$17.50) at $1.35 (closing bid price) expiring on 5/17/2008. Cost is $1,508, and income from sale of the calls is $124 and includes your commissions.  Annualized return if called is 295%. Not called in May. Price at $15.76 and value at $1,576 at 5/17/2008. Will now sell Jun17.5 at $1.85. 

$173 still own shares $4,241

Buy 100 shares of DOWNEY FINANCIAL CORP (DSL) at $16.15  (closing last trade price) and sell 1 contracts of DSL EW (May$17.50) at $1.65 (closing bid price) expiring on 5/17/2008. Cost is $1,625, and income from sale of the calls is $154 and includes your commissions.  Annualized return if called is 207%. Exercised get-out price at $13.73 after buying back call at $0.05 on April 22. Proceeds $1,363 after commission.

($17)   $5,587

Buy 100 shares of INTEROIL CORP (IOC) at $18.55  (closing last trade price) and sell 1 contracts of IOC ED (May$20.00) at $1.45 (closing bid price) expiring on 5/17/2008. Cost is $1,865, and income from sale of the calls is $134 and includes your commissions.  Annualized return if called is 174%. Called on May 17 at $20.00. Proceeds $1,990 after commission.

    $7,577
From Aggressive "Stocks-to-Consider" for May 17, 2008 and putting $2,000 in the money available field      

Buy 200 shares of EVERGREEN SOLAR INC (ESLR) at $9.45  (closing last trade price) and sell 2 contracts of QLU FB (Jun$10.00) at $0.60 (closing bid price) expiring on 6/21/2008. Cost is $1,900, and income from sale of the calls is $107 and includes your commissions.  Annualized return if called is 114%.

$107 $1,900 $5,784

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%.

$99 $1,456 $4,427

Buy 100 shares of E-HOUSE CHINA HLDGS ADS (EJ) at $16.27  (closing last trade price) and sell 1 contracts of EJ FW (Jun$17.50) at $1.00 (closing bid price) expiring on 6/21/2008. Cost is $1,637, and income from sale of the calls is $89 and includes your commissions.  Annualized return if called is 129%.

$89 $1,637 $2,879

Buy 100 shares of SILVER WHEATON CORP (SLW) at $14.44  (closing last trade price) and sell 1 contracts of SLW FC (Jun$15.00) at $0.65 (closing bid price) expiring on 6/21/2008. Cost is $1,454, and income from sale of the calls is $54 and includes your commissions.  Annualized return if called is 72%.

$54 $1,454 $1,479

Buy 100 shares of SANGAMO BIOSCIENCES INC (SGMO) at $13.30  (closing last trade price) and sell 1 contracts of UGD FC (Jun$15.00) at $0.50 (closing bid price) expiring on 6/21/2008. Cost is $1,340, and income from sale of the calls is $39 and includes your commissions.  Annualized return if called is 155%.

$39 $1,340 $175

Totals for May:

$642 $7,787 $175
Portfolio value at May 17, 2008 is $12,581*, up 25.8%.      

*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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