The Covered Call Analyzer
$10,000 Monitored Aggressive Portfolio Trades for September 2008
We suspended our get-out rule on September 15, 2008 due to volatility. They continue suspended.
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.
| Call Premium | Cost | Balance | |
| Balance from August: | $676 | ||
| From Aggressive "Stocks-to-Consider" for May 17, 2008 and putting $2,000 in the money available field | |||
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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%. Stock tanked on June 19. Price at June 21 is $6.86. Decided to hold. Price at July 19 is $6.24 and value at $723, down (50.4%) . Continuing to hold. Price at August 16 is $7.34 and value at $734, down (42.8%) . Continuing to hold. Price at September 20 is $8.75 and value at $973, down (33.1%) . Continuing to hold. |
still own shares | $676 | |
| From Aggressive "Stocks-to-Consider" for June 21, 2008 and putting $2,000 in the money available field | |||
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Buy 100 shares of CHINA FINANCE ONLINE ADS (JRJC) at $18.25 (closing last trade price) and sell 1 contracts of JQJ GD (Jul$20.00) at $1.05 (closing bid price) expiring on 7/19/2008. Cost is $1,835, and income from sale of the calls is $94 and includes your commissions. Annualized return if called is 176%. Not called in July. Price at $17.79 and value at $1,779 at 7/19/2008. Will now sell Aug20 at $0.85. Not called on August 16. Price at $15.66 and value at $1,566 at 8/16/2008. Will now sell Sep20 at $0.45. Exercised get-out price at $15.51 (-15%) on August 18 after buying back calls at $0.05. Proceeds $1,541. Final value including sale of all calls is $1,735, down (5.4%). |
$2,217 | ||
| From Aggressive "Stocks-to-Consider" for July 19, 2008 and putting $2,000 in the money available field | |||
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Buy 300 shares of MF GLOBAL LTD (MF) at $6.24 (closing last trade price) and sell 3 call Out-of-the-Money contracts of MF HU (Aug$7.50) at $0.75 (closing bid price) expiring on 8/16/2008. Cost is $1,882, and income from sale of the calls is $211 and includes your commissions. Annualized return if called is 387%. Not called on August 16. Price at $7.34 and value at $2,202 at 8/16/2008. Will now sell Sep7.5 at $0.70. Called on September 20 at $7.50. Proceeds $2,240 after commission. Total return including call premium is $2,646, up 40.6%. |
$2,240 | ||
| From Aggressive "Stocks-to-Consider" for August 16, 2008 and putting $2,000 in the money available field | |||
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Buy 200 shares of DELTA AIR LINES INC (DAL) at $9.41 (closing last trade price) and sell 2 call Out-of-the-Money contracts of DAL IB (Sep$10.00) at $1.15 (closing bid price) expiring on 9/20/2008. Cost is $1,892, and income from sale of the calls is $217 and includes your commissions. Annualized return if called is 174%. Exercised get-out price at $8.00 (-15%) on August 27 after buying back calls at $0.05. Proceeds $1,590. Final value including sale of all calls is $1,794, down (5.2%). |
$6,047 | ||
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Buy 200 shares of US AIRWAYS GROUP INC (LCC) at $9.02 (closing last trade price) and sell 2 call Out-of-the-Money contracts of LCC IB (Sep$10.00) at $1.10 (closing bid price) expiring on 9/20/2008. Cost is $1,814, and income from sale of the calls is $207 and includes your commissions. Annualized return if called is 220%. Exercised get-out price at $7.67 (-15%) on August 19 after buying back calls at $0.05. Proceeds $1,524. Final value including sale of all calls is $1,718, down (5.3%). |
$7,571 | ||
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Buy 200 shares of WESTERN REFINING INC (WNR) at $9.06 (closing last trade price) and sell 2 call Out-of-the-Money contracts of WNR IB (Sep$10.00) at $0.80 (closing bid price) expiring on 9/20/2008. Cost is $1,822, and income from sale of the calls is $147 and includes your commissions. Annualized return if called is 181%. Called on September 20 at $10.00. Proceeds $1,990 after commission. Total return including call premium is $2,137, up 17.3%. |
$9,561 | ||
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Buy 100 shares of HUNTSMAN CORP (HUN) at $14.26 (closing last trade price) and sell 1 call Out-of-the-Money contracts of HUN IC (Sep$15.00) at $1.50 (closing bid price) expiring on 9/20/2008. Cost is $1,436, and income from sale of the calls is $139 and includes your commissions. Annualized return if called is 143%. Exercised get-out price at $12.12 (-15%) on September 5 after buying back calls at $0.05. Proceeds $1,202. Final value including sale of all calls is $1,334, down (7.1%). |
$10,763 | ||
| From Aggressive "Stocks-to-Consider" for September 20, 2008 and putting $2,000 in the money available field | |||
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Buy 100 shares of UAL CORP (UAUA) at $13.24 (closing last trade price) and sell 1 call Out-of-the-Money contracts of UAL JC (Oct$15.00) at $2.05 (closing bid price) expiring on 10/18/2008. Cost is $1,344, and income from sale of the calls is $194 and includes your commissions. Annualized return if called is 340%. |
$194 | $1,344 | $9,613 |
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Buy 100 shares of HUNTSMAN CORP (HUN) at $10.88 (closing last trade price) and sell 1 call Out-of-the-Money contracts of HUN JV (Oct$12.50) at $1.95 (closing bid price) expiring on 10/18/2008. Cost is $1,108, and income from sale of the calls is $184 and includes your commissions. Annualized return if called is 384%. |
$184 | $1,108 | $8,689 |
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Buy 100 shares of CONTINENTAL AIRLINES (CAL) at $18.40 (closing last trade price) and sell 1 call Out-of-the-Money contracts of CAL JD (Oct$20.00) at $1.95 (closing bid price) expiring on 10/18/2008. Cost is $1,860, and income from sale of the calls is $184 and includes your commissions. Annualized return if called is 227%. |
$184 | $1,860 | $7,013 |
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Buy 200 shares of SALIX PHARMACEUTICALS (SLXP) at $6.87 (closing last trade price) and sell 2 call Out-of-the-Money contracts of PQN JU (Oct$7.50) at $0.80 (closing bid price) expiring on 10/18/2008. Cost is $1,394, and income from sale of the calls is $147 and includes your commissions. Annualized return if called is 237%. |
$147 | $1,394 | $5,766 |
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Buy 200 shares of SILVER WHEATON CORP (SLW) at $9.49 (closing last trade price) and sell 2 call Out-of-the-Money contracts of SLW JB (Oct$10.00) at $0.70 (closing bid price) expiring on 10/18/2008. Cost is $1,918, and income from sale of the calls is $127 and includes your commissions. Annualized return if called is 142%. |
$127 | $1,918 | $3,975 |
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Buy 100 shares of SAVIENT PHARMACEUTICALS (SVNT) at $19.73 (closing last trade price) and sell 1 call Out-of-the-Money contracts of UVP JX (Oct$22.50) at $1.45 (closing bid price) expiring on 10/18/2008. Cost is $1,993, and income from sale of the calls is $134 and includes your commissions. Annualized return if called is 256%. |
$134 | $1,993 | $2,116 |
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Buy 100 shares of TESSERA TECHNOLOGIES (TSRA) at $17.85 (closing last trade price) and sell 1 call Out-of-the-Money contracts of TJQ JD (Oct$20.00) at $1.40 (closing bid price) expiring on 10/18/2008. Cost is $1,805, and income from sale of the calls is $129 and includes your commissions. Annualized return if called is 234%. |
$129 | $1,805 | $440 |
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Totals for September: |
$1,099 | $11,422 | $440 |
| Portfolio value at September 20, 2008 is $12,597*, up 26.0%. | |||
*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.
© 1996-2008 Investment Enhancing Systems, Inc.- Incorporated in Illinois and registered in the Cook County