The Covered Call Analyzer
$10,000 Monitored Aggressive Portfolio Trades for May 16, 2009
This is a rolling portfolio and we will look at open positions and make new trades using monies from called and sold positions each month on expiration weekend. The statements starting "Buy...." is what the Covered Call Analyzer tells you to do.
| Call Premium | Cost | Balance | |
| From April: | $1,558 | ||
| From Aggressive "Stocks-to-Consider" for April 18, 2009 and putting $2,000 in the money available field | |||
| Buy 300 shares of MGM MIRAGE INC (MGM) at $6.30 (closing last trade price) and sell 3 call Out-of-the-Money contracts of MGM EU (May$7.50) at $0.85 (closing bid price) expiring on 5/16/2009. Cost is $1,900, and income from sale of the calls is $241 and includes your commissions. Annualized return if called is 406%. Exercised get-out price at $5.36 (-15%) on April 20 after buying back calls at $0.05. Proceeds $1,598 after commission and call buy back. Final value including sale of all calls is $1,819, down (4.3%). | ($30) | $3,126 | |
| Buy 100 shares of JAMES RIVER COAL COMPANY (JRCC) at $14.48 (closing last trade price) and sell 1 call Out-of-the-Money contracts of JQM EC (May$15.00) at $1.35 (closing bid price) expiring on 5/16/2009. Cost is $1,458, and income from sale of the calls is $124 and includes your commissions. Annualized return if called is 148%. Called on May 16 at $15.00. Proceeds $1,490 after commission. Total return including call premium is $1,614, up 10.7%. | $4,616 | ||
| Buy 100 shares of MCDERMOTT INTERNAT INC (MDR) at $16.98 (closing last trade price) and sell 1 call Out-of-the-Money contracts of MDR EW (May$17.50) at $1.30 (closing bid price) expiring on 5/16/2009. Cost is $1,708, and income from sale of the calls is $119 and includes your commissions. Annualized return if called is 123%. Called on May 16 at $17.50. Proceeds $1,740 after commission. Total return including call premium is $1,859, up 8.7%. | $6,356 | ||
| Buy 300 shares of UAL CORP (UAUA) at $6.45 (closing last trade price) and sell 3 call Out-of-the-Money contracts of UAL EU (May$7.50) at $0.55 (closing bid price) expiring on 5/16/2009. Cost is $1,945, and income from sale of the calls is $151 and includes your commissions. Annualized return if called is 306%. Exercised get-out price at $5.48 (-15%) on April 30 after buying back calls at $0.05. Proceeds $1,634 after commission and call buy back. Final value including sale of all calls is $1,765, down (9.2%). | ($30) | $7,960 | |
| Buy 300 shares of CANADIAN SOLAR INC (CSIQ) at $6.46 (closing last trade price) and sell 3 call Out-of-the-Money contracts of GQA EU (May$7.50) at $0.50 (closing bid price) expiring on 5/16/2009. Cost is $1,948, and income from sale of the calls is $136 and includes your commissions. Annualized return if called is 293%. Called on May 16 at $7.50. Proceeds $2,240 after commission. Total return including call premium is $2,376, up 22.0%. | $10,200 | ||
| Buy 200 shares of MARSHALL & ILSLEY CORP (MI) at $8.97 (closing last trade price) and sell 2 call Out-of-the-Money contracts of MI EB (May$10.00) at $0.70 (closing bid price) expiring on 5/16/2009. Cost is $1,804, and income from sale of the calls is $127 and includes your commissions. Annualized return if called is 233%. Exercised get-out price at $7.62 (-15%) on April 20 after buying back calls at $0.05. Proceeds $1,514 after commission and call buy back. Final value including sale of all calls is $1,628, down (9.7%). | ($23) | $11,691 | |
| Buy 200 shares of WYNDHAM WORLDWIDE CORP (WYN) at $8.92 (closing last trade price) and sell 2 call Out-of-the-Money contracts of WYN EB (May$10.00) at $0.60 (closing bid price) expiring on 5/16/2009. Cost is $1,794, and income from sale of the calls is $107 and includes your commissions. Annualized return if called is 227%. Called on May 16 at $10.00. Proceeds $1,990 after commission. Total return including call premium is $2,097, up 16.9%. | $13,681 | ||
| From Aggressive "Stocks-to-Consider" May 16, 2009 and putting $2,000 in the money available field | |||
Buy 300 shares of SAVIENT PHARMACEUTICALS (SVNT) at $5.30 (closing last trade price) and sell 3 call Out-of-the-Money contracts of UVP FU (Jun$7.50) at $1.05 (closing bid price) expiring on 6/20/2009. Cost is $1,600, and income from sale of the calls is $301 and includes your commissions. Annualized return if called is 610%. RISKY! |
$301 | $1,600 | $12,382 |
Buy 200 shares of YINGLI GREEN ENERGY ADS (YGE) at $8.50 (closing last trade price) and sell 2 call Out-of-the-Money contracts of YGE FB (Jun$10.00) at $0.80 (closing bid price) expiring on 6/20/2009. Cost is $1,710, and income from sale of the calls is $147 and includes your commissions. Annualized return if called is 259%. |
$147 | $1,710 | $10,819 |
Buy 100 shares of TESSERA TECHNOLOGIES (TSRA) at $15.48 (closing last trade price) and sell 1 call Out-of-the-Money contracts of TJQ FW (Jun$17.50) at $1.60 (closing bid price) expiring on 6/20/2009. Cost is $1,558, and income from sale of the calls is $149 and includes your commissions. Annualized return if called is 220%. |
$149 | $1,558 | $9,410 |
Buy 200 shares of MONARCH CASINO & RESORT (MCRI) at $8.95 (closing last trade price) and sell 2 call Out-of-the-Money contracts of QIK FB (Jun$10.00) at $1.00 (closing bid price) expiring on 6/20/2009. Cost is $1,800, and income from sale of the calls is $187 and includes your commissions. Annualized return if called is 217%. |
$187 | $1,800 | $7,797 |
Buy 300 shares of EAGLE BULK SHIPPING INC (EGLE) at $6.59 (closing last trade price) and sell 3 call Out-of-the-Money contracts of QEK FU (Jun$7.50) at $0.55 (closing bid price) expiring on 6/20/2009. Cost is $1,987, and income from sale of the calls is $151 and includes your commissions. Annualized return if called is 211%. |
$151 | $1,987 | $5,961 |
Buy 200 shares of HELIX ENERGY SOLUTION GP (HLX) at $9.33 (closing last trade price) and sell 2 call Out-of-the-Money contracts of HLX FB (Jun$10.00) at $0.70 (closing bid price) expiring on 6/20/2009. Cost is $1,876, and income from sale of the calls is $127 and includes your commissions. Annualized return if called is 133%. |
$127 | $1,876 | $4,212 |
Buy 100 shares of TRINA SOLAR LTD ADS (TSL) at $16.95 (closing last trade price) and sell 1 call Out-of-the-Money contracts of TSL FW (Jun$17.50) at $1.75 (closing bid price) expiring on 6/20/2009. Cost is $1,705, and income from sale of the calls is $164 and includes your commissions. Annualized return if called is 121%. |
$164 | $1,705 | $2,671 |
Buy 100 shares of ROYAL CARIBBEAN CRUISES (RCL) at $14.30 (closing last trade price) and sell 1 call Out-of-the-Money contracts of RCL FC (Jun$15.00) at $1.20 (closing bid price) expiring on 6/20/2009. Cost is $1,440, and income from sale of the calls is $109 and includes your commissions. Annualized return if called is 114%. |
$109 | $1,440 | $1,340 |
|
Totals for May: |
$1,252 | $13,676 | $1,340 |
| Portfolio value at May 16 is $14,936*, up +49.4%. The NASDAQ average for the year so far is up +9.9% | |||
*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 and sold more calls 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.