Covered Call Analyzer from Investment Enhancing Systems, Inc.

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February 18, 2012
We’ve had a very good first month. On this February expiration weekend, the portfolios show the following returns: $10K Aggressive - +18.8% $25K Conservative - +8.7% $25K Aggressive - +13.6% $100K Retirement - +10.0% after $4,000 taken as income (total return +14.0%) S&P500 - +3.5% Some explanation is necessary for you to track the returns of our portfolios. I’ll take the $10K Aggressive as the example since it was the most explosive. On the first expiration of 2012 (January 21, 2012) last month, we opened this portfolio and showed an initial return of +5.8% right out of the gate. This was due to the call premium sold (a lot of it from ONTY). If you look at the “Results” tor this portfolio today, you will see that the return during the month to today, rose to 10.5%, primarily due to stock appreciation. Now if you check out the “Latest Update” for the $10K portfolio, you will note that the return has increased to 18.8%. This increase is due to the call premium realized ($879) as we start the February buy/writes. This is exactly what we want – call premium and stock appreciation.
You will note that I have sold more calls against ONTY. The premiums are just too high. We sold the Feb10 call at $1.25 and the Mar10 at $1.90. We bought the stock at $6.47 so the call premium has walked that price down to $3.32. The stock price this weekend is $8.60. Our return right now is 79.2%.

Good Luck and Profitable Investing!!!
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