$10,000 Monitored Aggressive Portfolio Trades for November 2006
| Call Premium | Cost | Balance | |
| From Oct. | $547 | ||
| 100 shares of RMBS purchased in September at $18.11 not called in October. Price at $16.71, Value $1,671 on 10/20/06. Sell 1 Nov20 at $0.35. Called at $20.00 in November. Proceeds $1,990 after commission. | $2,537 | ||
| 100 shares of MFLX purchased in September at $23.27 not called in October. Price at $22.47, Value $2,247 on 10/20/06. Sell 1 Nov25 at $0.90. Not called in November. Price at $21.57, Value $2,157 on 11/18/06. Sell 1 Dec25 at $0.20. | +$8 | $2,545 | |
| 100 shares of IOC purchased in September at $16.10 not called in October. Price at $17.49, Value $1,749 on 10/20/06. Sell 1 Nov17.5 at $1.85. Called at $17.50 in November. Proceeds $1,740 after commission. | $4,285 | ||
| Risky (it was) - 100 shares of RNVS purchased in October at $14.84 tanked on October 26, on bad news. Held stock for 7 days hopping for a bounce and sold all shares at $3.35 on November 2. Proceeds $325 after commission. This identifies why diversity is so important. This portfolio held seven different stocks when the tank occurred. We took a total loss of $1,169 on this hit but have been able to recover all of it this month. | $4,610 | ||
| 100 shares of FLML purchased in October at $21.78 called at $25.00 in November. Proceeds $2,490 after commission. | $7,100 | ||
| 100 shares of MEE purchased in October at $23.72 not called in November. Price at $24.72, Value $2,472 on 11/17/06. Sell 1 Dec25 at $1.00. | +88 | $7,188 | |
| Buy 100 shares of PLLL purchased in October at $19.54 called at $20.00 in November. Proceeds $1,990 after commission. | $9,178 | ||
| From Aggressive "Stocks-to-Consider" for November 21, 2006 and putting $2,500 in money available, using the high PE or no earnings button and then finding the buy/writes identified by the Analyzer with the highest Income from the sale of the calls. | |||
| Buy 200 shares of BCRX at $11.73 (closing last trade price) and sell 2 contracts of BIU LV (Dec$12.50 ) at $0.60 (closing bid price) expiring on 12/16/2006. | +107 | $2,356 | $6,929 |
| Buy 100 shares of IOC at $21.80 (closing last trade price) and sell 1 contracts of IOC LX (Dec$22.50 ) at $1.50 (closing bid price) expiring on 12/16/2006. | +$139 | $2,190 | $4,878 |
| Buy 100 shares of BCSI at $24.35 (closing last trade price) and sell 1 contracts of IYU LE (Dec$25.00 ) at $1.75 (closing bid price) expiring on 12/16/2006. | +$164 | $2,445 | $2,597 |
| RISKY - Buy 100 shares of ONXX at $18.02 (closing last trade price) and sell 1 contracts of OIQ LD (Dec$20.00 ) at $2.25 (closing bid price) expiring on 12/16/2006. | +$214 | $1,812 | $999 |
|
Totals for November: |
+$720 | ||
| Portfolio value at November 18, 2006 after selling the calls is $14,471. We will review results on the weekend of December 22, 2006 (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 January 21, 2006 (expiration weekend), Investment Enhancing Systems, Inc. initiated a new $10,000 aggressive portfolio for 2006, 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 $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 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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