Investment Enhancing Systems, Inc. – Covered Call Analyzer

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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 November:			$917
400 shares of GOLD purchased in September at $20.53 and sell 4 contracts of GUD JX (Oct$22.50) at $0.55 expiring on 10/21/2006. Not called in October. Price at $21.56 and value $8,624 on 10/20/2006. Sell 4 GUD KX (Nov22.5) at $0.80. Not called in November. Price at $21.75 and value $8,700 on 9/16/2006. Sell 6 GUD LX (Dec22.5) at $0.70. Called in December at $22.50. Proceeds $8,980 after commission.			$9,897
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		still own shares	$9,897
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.	+$299	still own shares	$9,897
Buy 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.	+$107	still own shares	$9,897
500 shares of OVTI purchased in November at $17.63 (closing last trade price) and sell 5 contracts of UCM LD (Dec$20.00) at $0.70 (closing bid price) expiring on 12/16/2006. Exercised get-out price at $14.99 on December 1 after buying back calls at $0.10. Return $7,475 after commission			$17,372
Buy 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.	+$264	still own shares	$17,372
Buy 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.	+$264	still own shares	$17,372
Buy 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.		still own shares	$9,897
Buy 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.	+$644	still own shares	$9,897
From Conservative "Stocks-to-Consider" for December 16, 2006
Buy 400 shares of LIFC at $22.21 (closing last trade price) and sell 4 contracts of QKL AX (Jan$22.50) at $1.25 (closing bid price) expiring on 1/20/2007.	+$484	$8,904	$993
Totals for December:	+$2,062		$993
Portfolio value at December 16, 2006 is $106,974 after $2,062 taken as income .

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.