Investment Enhancing Systems, Inc. – Covered Call Analyzer

$100,0000 Retirement Portfolio Trades for December 2006

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.

	Income*	Cost*	Balance
Cash balance from December:			$993
400 shares of MFLX purchased in October at $22.47 and sell 4 contracts of FUX KF (Nov$30.00) at $0.30 expiring on 11/18/2006. Not called in November. Price at $21.57 and value $8,628 on 11/18/2006. Sell 4 FUX LX (Dec22.5) at $0.70. Note that we have lowered the strike price to $22.50 since it is above the original purchase price. Not called in December. Price at $21.26 and value $8,501 on 12/16/2006. Holding. Exercised get-out price at $19.10 on January 4, 2007 after buying back calls at $0.05. Proceeds $7,620 after commission.	($36)		$8,613
900 shares of ORCT purchased in November at $10.56 and sell 9 contracts of QEO LV (Dec$12.50) at $0.25 expiring on 12/16/2006. Not called in December. Price at $10.64 and value $9,576 on 12/16/2006. Sell 4 QEO AV (Jan12.5) at $0.25. Not called in January. Sold all shares at $9.83 at January expiration to closes out position. Proceeds $8,827 after commission.			$17,440
500 shares of MRVL purchased in November at $19.05 and sell 5 contracts of UVM LX (Dec$22.50) at $0.35 expiring on 12/16/2006. Not called in December. Price at $20.01 and value $10,005 on 12/16/2006. Sell 5 UVM AX (Jan22.5) at $0.25. Not called in January. Sold all shares at $18.45 at January expiration to closes out position. Proceeds $9,205 after commission.			$26,645
400 shares of MSCC purchased in November at $20.35 and sell 4 contracts of QMS LX (Dec$22.50) at $0.80 expiring on 12/16/2006. Not called in December. Price at $19.71 and value $7,884 on 12/16/2006. Will now sell Jan20 at 0.70. Note that we have lowered the strike price because our purchase price and December premium lowers price below $20.00. Not called in January. Sold all shares at $17.30 at January expiration (which was get-out price) to close out position for the year. Proceeds $6,900 after commission.			$35,565
400 shares of URBN purchased in November at $22.39 and sell 4 contracts of URQ LE (Dec$25.00) at $0.30 expiring on 12/16/2006. Not called in December. Price at $XX.XX and value $X,XXX on 12/16/2006. Sell 4 URQ AX (Jan22.5) at $0.XX. Note that we have lowered the strike price to $22.50 since it is above the original purchase price. Not called in December. Price at $24.00 at 12/16/2006. Will now sell Jan25 at 0.70. Not called in January. Sold all shares at $24.72 at January expiration to closes out position. Proceeds $9,868 after commission.			$45,433
600 shares of PALM purchased in November at $15.87 and sell 6 contracts of UPY LW (Dec$17.50) at $0.30 expiring on 12/16/2006. Not called in December. Price at $14.08 at 12/16/2006. Holding. Exercised get-out price at $13.49 on December 19, 2007 after buying back calls at $0.10. Proceeds $8,074 after commission.	($78)		$53,507
700 shares of TOMO purchased in November at $13.75 and sell 7 contracts of QWX LC (Dec$15.00) at $0.35 expiring on 12/16/2006. Not called in December. Price at $14.99 at 12/16/2006 (close to strike price). Will now sell Jan15 at 0.95. Not called in January. Sold all shares at $13.77 at January expiration to closes out position. Proceeds $9,609 after commission.			$63,126
400 shares of LIFC purchased in December at $22.21 and sell 4 contracts of QKL AX (Jan$22.50) at $1.25 expiring on 1/20/2007. Called in January at $22.50. Proceeds $8,980 after commission.			$72,106
Totals for December:	($114)		$72,106
Portfolio value at January expiration (close of 2006) is $XX,XXX after $XX,XXX was taken as income throughout 2006.

*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.

Starting in January 2006, Investment Enhancing Systems, Inc. provided this retirement portfolio using the stocks identified in our Conservative "Stocks-to-Consider" list. We started by investing $100,000 in stock buy/writes identified by the Covered Call Analyzer on expiration weekend for January 2006. Since it is a retirement portfolio, we take the premium income each month as income. We reinvest (keep in the portfolio) stock price appreciation to the strike price. Our objective is to maintain and grow the portfolio while maintaining a monthly income of over $2000. Click on the month below to view details of stocks bought and calls sold and when we held the stock or exercised our get-out price. We anticipate good months and poor months, with a general gain at year end. PATIENCE usually wins.

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