Covered Call Analyzer from Investment Enhancing Systems, Inc.

The Covered Call Analyzer

Covered Call Analyzer Aggressive "Stocks to Consider" Results for 2011
(Closed out on January 21, 2012)

To see the details of all the covered call transactions in a particular month click on that month below. A new window will open and you can see just what happened with a particular transaction. Close that window to get back to this page.

2011 Month	Cost of this Month's twenty (20) "Stocks-to-Consider"	Income from All Calls Sold	Value of the twenty (20) "Stocks-to-Consider" including call income	Status	Percentage Change in Value of List during period list was open	Percentage change of S&P500 during period list was open
January	$86,117	$3,947	$91,991	opened on January 22 closed on February 19	+6.8%	+4.6%
February	$84,593	$2,774	$77,733	opened on February 19 closed on March 19	(8.1%)	(4.8%)
March	$81,360	$2,590	$85,659	opened on March 19 closed on April 16	+5.0%	+3.2%
April	$78,960	$2,085	$79,830	opened on April 16 closed on May 21	+1.1%	+1.0%
May	$83,458	$1,478	$78,187	opened on May 21 closed on June 18	(6.8%)	(4.6%)
June	$82,578	$2,233	$90,141	opened on June 18 closed on July 16	+9.2%	+2.6%
July	$78,032	$893	$69,158	opened on July 16 closed on August 20	(11.4%)	(14.6%)
August	$84,511	$2,487	$96,126	opened on August 20 closed on September 17	+13.7%	+8.2%
September	$83,871	$3,808	$77,188	opened on September 17 closed on October 22	(8.0%)	+1.8%
October	$88,383	$3,156	$89,544	opened on October 22 closed on November 19	+1.3%	(1.8%)
November	$81,748	$1,529	$79,551	opened on November 19 closed on December 17	(2.7%)	+0.3%
December	$83,619	$3,365	$92,115	opened on December 17 Closed out for they year 2011 on January 21, 2012.	+10.1%	+7.2%

*Our Subscribers see this list on expiration weekend each month.

In 1999 Investment Enhancing Systems, Inc. began publishing an Aggressive "Stocks-to-Consider" list. Each month on expiration weekend (the third weekend of the month) we run the Covered Call Analyzer using our default parameters and the "high PE or no earnings: selection and published a list of the ten (10) stock/call combinations, identified by the Analyzer, that have high dollar income for the sale of the calls. In 2008 we increased the list to twenty (20) selections to give our subscribers a bigger choice to consider. We have done this with education in mind. Our objective is to help the investor understand how to use covered calls and what to do if the stock does not get called or tanks. We publish our results here. Many of our customers Run the Analyzer, with their own parameters and make their own selections, or select stock/call combinations from our list. Because this is an aggressive list, it has more risk than the Conservative list because it includes stocks with high PEs or no earnings. Sometimes we label individual stock/call combinations as "risky".
We assume that there is $5,000 for the purchase of each stock listed (purchased in lots of 100 shares). In some cases we spend much less to purchase the stock. If the stock costs $35.00 we can only buy 100 shares and the cost is only $3500 plus commissions.
Our objective is to have the stock called in the next month, but that doesn't always happen. It then becomes necessary to decide whether to sell more calls for the next month, hold or sell out. Because this is an aggressive list, we establish a get-out price at -20% and sell the stock if it drops 20% below our purchase price. Because the stock purchased is "covered" by the sold calls, we must buy back the call contracts before selling the stock at the get-out price. The buy-back of the calls is usually at a much lower price than what they were originally sold for, producing some premium against the drop in stock price. We strongly recommend establishing a get-out price and then sticking to it.
Remember, PATIENCE pays off.

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