Investment Enhancing Systems, Inc. – Covered Call Analyzer

$10,000 Monitored Aggressive Portfolio Trades for September 2006

	Call Premium	Cost	Balance
From Aug.			$415
200 shares of RMBS purchased in August at $11.95 called at a strike price of $12.50 in September. Proceeds $2,490 after commission.			$2,905
200 shares of KFX purchased in August. Exercised get-out price at $12.33 (-15%) on September 12, after buying back calls at $0.05. Proceeds $2,456 after commission.	($23)		$5,338
200 shares of MTEX purchased in August at $14.02 called in September. Proceeds $2,990 after commission.			$8,328
200 shares of AKS purchased in August at $12.23 called at a strike price of $12.50 in September. Proceeds $2,490 after commission.			$10,818
100 shares of TRID purchased in August at $19.61 called at a strike price of $20.00 in September. Proceeds $1,990 after commission.			$12,808
From Aggressive "Stocks-to-Consider" for September 16, 2006 and putting $2,500 in money available and then finding the buy/writes identified by the Analyzer with the highest Income from the sale of the calls.
Buy 100 shares of RMBS at $18.11 (closing last trade price) and sell 1 contracts of BNQ JD (Oct$20.00 ) at $1.10 (closing bid price) expiring on 10/21/2006.	+$99	$1,821	$11,086
Buy 100 shares of CUTR at $24.69 (closing last trade price) and sell 1 contracts of QCV JE (Oct$25.00 ) at $1.75 (closing bid price) expiring on 10/21/2006.	+$164	$2,479	$8,771
Buy 200 shares of GRA at $12.22 (closing last trade price) and sell 2 contracts of GRA JV (Oct$12.50 ) at $0.80 (closing bid price) expiring on 10/21/2006.	+$147	$2,454	$6,464
Buy 100 shares of MFLX at $23.27 (closing last trade price) and sell 1 contracts of FUX JE (Oct$25.00 ) at $1.05 (closing bid price) expiring on 10/21/2006.	+$94	$2,337	$4,221
Buy 100 shares of IOC at $16.10 (closing last trade price) and sell 1 contracts of IOC JW (Oct$17.50 ) at $0.75 (closing bid price) expiring on 10/21/2006.	+$64	$1,620	$2,665
Totals for September:	+$605		$2,665
Portfolio value at September 16, 2006 after selling the calls is $13,318. We will review results on the weekend of October 21, 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.

top