Covered Call Analyzer from Investment Enhancing Systems, Inc.

The Covered Call Analyzer

$100,0000 Retirement Portfolio Trades for December 17, 2011

This is a rolling portfolio and we will look at open positions and make new trades using monies from called and sold positions each month on expiration weekend. The statements starting "Buy...." is what the Covered Call Analyzer tells you to do after finding the best buy/writes and calculating the values.

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Income* Cost*
Balance

From November:

$3,506

From Conservative "Stocks-to-Consider" for August 16, 2011 and putting $10,000 into the money available field.

Buy 1000 shares of HARVEST NATURAL RESOURCES (HNR) at $9.12 (closing last trade price) and sell 10 call Out-of-the-Money contracts of HNR1117I12.5 (Sep$12.50) at $0.30 (closing bid price) expiring on 9/17/2011. Cost is $9,140, and income from sale of the calls is $275 and includes your commissions. Actual return if called at expiration is 39.8%. Not called on September 17. Will now sell Oct15 at $0.35. Note that we have raised the strike price. Price at $12.50 and value at $13,080, including sale of all calls, up +43.1%. Not called on October 22. Will now sell Nov12.5 at $0.55. Price at $11.28 and value at $12,405, including sale of all calls, up +35.7%. Not called on November 19. Will now sell Dec10 at $0.30. Note that we have lowered the strike price but it is still above the purchase price. Price at $8.74 and value at $10,140, including sale of all calls, up +10.9%. Exercised get-out price at $7.75 (-15%) on December 8 after buying back calls at $0.05. Proceeds $7,730 after commission. Final value including sale of all calls is $9,075, down (0.7%).
$11,236

From Conservative "Stocks-to-Consider" for October 22, 2011 and putting $10,000 into the money available field.

Buy 200 shares of INTERDIGITAL(IDCC) at $47.65 (closing last trade price) and sell 2 call Out-of-the-Money contracts of IDCC1119K55 (Nov$55.00) at $3.60 (closing bid price) expiring on 11/19/2011. Cost is $9,550, and income from sale of the calls is $707 and includes your commissions. Actual return if called at expiration is 22.6%. Not called on November 19. Will now sell Dec55 at $3.20. Price at $47.37 and value at $10,808, including sale of all calls, up +13.2%. Exercised get-out price at $40.50 (-15%) on November 23 after buying back calls at $0.05. Proceeds $8,080 after commission. Final value including sale of all calls is $9,411, down (1.5%). $19,316

Buy 1100 shares of GENCO SHIPPING & TRADING(GNK) at $8.45 (closing last trade price) and sell 11 call Out-of-the-Money contracts of GNK1119K10 (Nov$10.00) at $0.30 (closing bid price) expiring on 11/19/2011. Cost is $9,315, and income from sale of the calls is $304 and includes your commissions. Actual return if called at expiration is 21.4%. Not called on November 19. Will now sell Dec10 at $0.25. Price at $8.72 and value at $10,144, including sale of all calls, up +8.9%. Exercised get-out price at $7.18 (-15%) on November 23 after buying back calls at $0.05. Proceeds $7,878 after commission. Final value including sale of all calls is $8,450, down (9.3%).

$27,194

Buy 600 shares of FIRST MAJESTIC SILVER(AG) at $15.34 (closing last trade price) and sell 6 call Out-of-the-Money contracts of AG1119K17.5 (Nov$17.50) at $0.50 (closing bid price) expiring on 11/19/2011. Cost is $9,224, and income from sale of the calls is $281 and includes your commissions. Actual return if called at expiration is 16.9%. Not called on November 19. Will now sell Dec17.5 at $0.30. Price at $15.15 and value at $9,532, including sale of all calls, up +3.3%. Not called on December17. Will now sell Jan17.5 at $0.95. Price at $17.09 and value at $11,247, including sale of all calls, up +21.9%.
$551 $27,194

Buy 100 shares of CLIFFS NATURAL RESOURCES(CLF) at $60.03 (closing last trade price) and sell 1 call Out-of-the-Money contracts of CLF1119K75 (Nov$75.00) at $0.45 (closing bid price) expiring on 11/19/2011. Cost is $6,023, and income from sale of the calls is $34 and includes your commissions. Actual return if called at expiration is 25.1%. Not called on November 19. Will now sell Dec75 at $1.54. Price at $67.46 and value at $6,922, including sale of all calls, up +14.9%. Not called on November 19. Will now sell Jan65 at $3.50. Note that we have lowered the strike price but it is still above the purchase price. Price at $63.95 and value at $3,910, including sale of all calls, up +14.7%.
$339 $27,194

From Conservative "Stocks-to-Consider" for November 19, 2011 and putting $10,000 into the money available field.

Buy 1900 shares of CHINACAST EDUCATION (CAST) at $5.11  (closing last trade price) and sell 19 call Out-of-the-Money contracts of CAST1117L7.5 (Dec$7.50) at $0.25 (closing bid price) expiring on12/17/2011. Cost is $9,729, and income from sale of the calls is $437 and includes your commissions. Actual return if called at expiration is 51.0%. Not called on December 17. Sold all shares at $5.40 because there were no good premiums.Proceeds $10,240 after commission. Price at $5.40 and value at $10,697, including sale of all calls, up +9.9%. $37,434

Buy 500 shares of RESEARCH IN MOTION (RIMM) at $18.19  (closing last trade price) and sell 5 call Out-of-the-Money contracts of RIMM1117L22.5 (Dec$22.50) at $0.55 (closing bid price) expiring on12/17/2011. Cost is $9,115, and income from sale of the calls is $258 and includes your commissions. Actual return if called at expiration is 26.3%.Exercised get-out price at $15.46 (-15%) on Decemer 13 after buying back calls at $0.05. Proceeds $7,710 after commission. Final value including sale of all calls is $7,945, down (12.8%). $45,144

Buy 1000 shares of CENTURY ALUMINUM (CENX) at $9.52  (closing last trade price) and sell 10 call Out-of-the-Money contracts of CENX1117L11 (Dec$11.00) at $0.27 (closing bid price) expiring on12/17/2011. Cost is $9,540, and income from sale of the calls is $245 and includes your commissions. Actual return if called at expiration is 17.9%. Not called on December 17. Sold all shares at $8.64 because there were no good premiums.Proceeds $8,620 after commission. Price at $8.64 and value at $8,885, including sale of all calls, down (6.9%). $53,764

Buy 200 shares of DIAMOND FOODS (DMND) at $35.86  (closing last trade price) and sell 2 call Out-of-the-Money contracts of DMND1117L45 (Dec$45.00) at $0.90 (closing bid price) expiring on 12/17/2011. Cost is $7,192, and income from sale of the calls is $167 and includes your commissions. Actual return if called at expiration is 27.5%. Exercised get-out price at $30.48 (-15%) on November 23 after buying back calls at $0.05. Proceeds $6,076 after commission. Final value including sale of all calls is $6,240, down (13.2%). $59,840

From Conservative "Stocks-to-Consider" for December 17, 2011 and putting $10,000 into the money available field.

OUR SUBACRIBERS SAW THESE BUY/WRITES ON DECEMBER 17 $541 $8,126 $51,714

OUR SUBACRIBERS SAW THESE BUY/WRITES ON DECEMBER 17 $337 $7,914 $43,800

OUR SUBACRIBERS SAW THESE BUY/WRITES ON DECEMBER 17 $288 $9,190 $34,610

OUR SUBACRIBERS SAW THESE BUY/WRITES ON DECEMBER 17 $281 $9,206 $25,404

OUR SUBACRIBERS SAW THESE BUY/WRITES ON DECEMBER 17 $258 $8,850 $16,554

OUR SUBACRIBERS SAW THESE BUY/WRITES ON DECEMBER 17 $236 $8,720 $7,834

OUR SUBACRIBERS SAW THESE BUY/WRITES ON DECEMBER 17 $103 $7,949 ($115)

Totals for December:
$2,934 $59,955 ($115)

Taking $2,000 out as income total leaves $934 that will be added to the cash balance:
$819

Portfolio value at opening on December 17, 2011 is $80,803* after $24,000 taken as income in ten months. Total return including income is $104,803, up 4.3%. The S&P500 average for the year so far is down (5.0%).

*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.

Starting on January 22, 2011, 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 22, 2011. Since it is a retirement portfolio, we take $2,000 premium income each month as income. We reinvest (keep in the portfolio) stock price appreciation to the strike price and the balance of call premium. Our objective is to maintain and grow the portfolio while maintaining a monthly income of $2,000. We will update this portfolio each month on expiration weekend, using the Analyzer, to find more buy/writes using the monies realized from called or "get-out" sales. Because this is a conservative portfolio, we have established the get-out price at -15% below the purchase price.

	Income*	Cost*	Balance
From November:			$3,506
From Conservative "Stocks-to-Consider" for August 16, 2011 and putting $10,000 into the money available field.
Buy 1000 shares of HARVEST NATURAL RESOURCES (HNR) at $9.12 (closing last trade price) and sell 10 call Out-of-the-Money contracts of HNR1117I12.5 (Sep$12.50) at $0.30 (closing bid price) expiring on 9/17/2011. Cost is $9,140, and income from sale of the calls is $275 and includes your commissions. Actual return if called at expiration is 39.8%. Not called on September 17. Will now sell Oct15 at $0.35. Note that we have raised the strike price. Price at $12.50 and value at $13,080, including sale of all calls, up +43.1%. Not called on October 22. Will now sell Nov12.5 at $0.55. Price at $11.28 and value at $12,405, including sale of all calls, up +35.7%. Not called on November 19. Will now sell Dec10 at $0.30. Note that we have lowered the strike price but it is still above the purchase price. Price at $8.74 and value at $10,140, including sale of all calls, up +10.9%. Exercised get-out price at $7.75 (-15%) on December 8 after buying back calls at $0.05. Proceeds $7,730 after commission. Final value including sale of all calls is $9,075, down (0.7%).			$11,236
From Conservative "Stocks-to-Consider" for October 22, 2011 and putting $10,000 into the money available field.
Buy 200 shares of INTERDIGITAL(IDCC) at $47.65 (closing last trade price) and sell 2 call Out-of-the-Money contracts of IDCC1119K55 (Nov$55.00) at $3.60 (closing bid price) expiring on 11/19/2011. Cost is $9,550, and income from sale of the calls is $707 and includes your commissions. Actual return if called at expiration is 22.6%. Not called on November 19. Will now sell Dec55 at $3.20. Price at $47.37 and value at $10,808, including sale of all calls, up +13.2%. Exercised get-out price at $40.50 (-15%) on November 23 after buying back calls at $0.05. Proceeds $8,080 after commission. Final value including sale of all calls is $9,411, down (1.5%).			$19,316
Buy 1100 shares of GENCO SHIPPING & TRADING(GNK) at $8.45 (closing last trade price) and sell 11 call Out-of-the-Money contracts of GNK1119K10 (Nov$10.00) at $0.30 (closing bid price) expiring on 11/19/2011. Cost is $9,315, and income from sale of the calls is $304 and includes your commissions. Actual return if called at expiration is 21.4%. Not called on November 19. Will now sell Dec10 at $0.25. Price at $8.72 and value at $10,144, including sale of all calls, up +8.9%. Exercised get-out price at $7.18 (-15%) on November 23 after buying back calls at $0.05. Proceeds $7,878 after commission. Final value including sale of all calls is $8,450, down (9.3%).			$27,194
Buy 600 shares of FIRST MAJESTIC SILVER(AG) at $15.34 (closing last trade price) and sell 6 call Out-of-the-Money contracts of AG1119K17.5 (Nov$17.50) at $0.50 (closing bid price) expiring on 11/19/2011. Cost is $9,224, and income from sale of the calls is $281 and includes your commissions. Actual return if called at expiration is 16.9%. Not called on November 19. Will now sell Dec17.5 at $0.30. Price at $15.15 and value at $9,532, including sale of all calls, up +3.3%. Not called on December17. Will now sell Jan17.5 at $0.95. Price at $17.09 and value at $11,247, including sale of all calls, up +21.9%.	$551		$27,194
Buy 100 shares of CLIFFS NATURAL RESOURCES(CLF) at $60.03 (closing last trade price) and sell 1 call Out-of-the-Money contracts of CLF1119K75 (Nov$75.00) at $0.45 (closing bid price) expiring on 11/19/2011. Cost is $6,023, and income from sale of the calls is $34 and includes your commissions. Actual return if called at expiration is 25.1%. Not called on November 19. Will now sell Dec75 at $1.54. Price at $67.46 and value at $6,922, including sale of all calls, up +14.9%. Not called on November 19. Will now sell Jan65 at $3.50. Note that we have lowered the strike price but it is still above the purchase price. Price at $63.95 and value at $3,910, including sale of all calls, up +14.7%.	$339		$27,194
From Conservative "Stocks-to-Consider" for November 19, 2011 and putting $10,000 into the money available field.
Buy 1900 shares of CHINACAST EDUCATION (CAST) at $5.11 (closing last trade price) and sell 19 call Out-of-the-Money contracts of CAST1117L7.5 (Dec$7.50) at $0.25 (closing bid price) expiring on12/17/2011. Cost is $9,729, and income from sale of the calls is $437 and includes your commissions. Actual return if called at expiration is 51.0%. Not called on December 17. Sold all shares at $5.40 because there were no good premiums.Proceeds $10,240 after commission. Price at $5.40 and value at $10,697, including sale of all calls, up +9.9%.			$37,434
Buy 500 shares of RESEARCH IN MOTION (RIMM) at $18.19 (closing last trade price) and sell 5 call Out-of-the-Money contracts of RIMM1117L22.5 (Dec$22.50) at $0.55 (closing bid price) expiring on12/17/2011. Cost is $9,115, and income from sale of the calls is $258 and includes your commissions. Actual return if called at expiration is 26.3%.Exercised get-out price at $15.46 (-15%) on Decemer 13 after buying back calls at $0.05. Proceeds $7,710 after commission. Final value including sale of all calls is $7,945, down (12.8%).			$45,144
Buy 1000 shares of CENTURY ALUMINUM (CENX) at $9.52 (closing last trade price) and sell 10 call Out-of-the-Money contracts of CENX1117L11 (Dec$11.00) at $0.27 (closing bid price) expiring on12/17/2011. Cost is $9,540, and income from sale of the calls is $245 and includes your commissions. Actual return if called at expiration is 17.9%. Not called on December 17. Sold all shares at $8.64 because there were no good premiums.Proceeds $8,620 after commission. Price at $8.64 and value at $8,885, including sale of all calls, down (6.9%).			$53,764
Buy 200 shares of DIAMOND FOODS (DMND) at $35.86 (closing last trade price) and sell 2 call Out-of-the-Money contracts of DMND1117L45 (Dec$45.00) at $0.90 (closing bid price) expiring on 12/17/2011. Cost is $7,192, and income from sale of the calls is $167 and includes your commissions. Actual return if called at expiration is 27.5%. Exercised get-out price at $30.48 (-15%) on November 23 after buying back calls at $0.05. Proceeds $6,076 after commission. Final value including sale of all calls is $6,240, down (13.2%).			$59,840
From Conservative "Stocks-to-Consider" for December 17, 2011 and putting $10,000 into the money available field.
OUR SUBACRIBERS SAW THESE BUY/WRITES ON DECEMBER 17	$541	$8,126	$51,714
OUR SUBACRIBERS SAW THESE BUY/WRITES ON DECEMBER 17	$337	$7,914	$43,800
OUR SUBACRIBERS SAW THESE BUY/WRITES ON DECEMBER 17	$288	$9,190	$34,610
OUR SUBACRIBERS SAW THESE BUY/WRITES ON DECEMBER 17	$281	$9,206	$25,404
OUR SUBACRIBERS SAW THESE BUY/WRITES ON DECEMBER 17	$258	$8,850	$16,554
OUR SUBACRIBERS SAW THESE BUY/WRITES ON DECEMBER 17	$236	$8,720	$7,834
OUR SUBACRIBERS SAW THESE BUY/WRITES ON DECEMBER 17	$103	$7,949	($115)
Totals for December:	$2,934	$59,955	($115)
Taking $2,000 out as income total leaves $934 that will be added to the cash balance:			$819
Portfolio value at opening on December 17, 2011 is $80,803* after $24,000 taken as income in ten months. Total return including income is $104,803, up 4.3%. The S&P500 average for the year so far is down (5.0%).