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 June:			$425
700 shares of HOTT purchased in March at $13.77 and sell 7 contracts of UHO DC (Apr15) at $0.25 expiring on 4/22/2006. Not called in April. Price at $14.33 and value $10,031 on 4/21/2006. Sell 7 UHO EC (May15) at $0.25. Not called in May. Price at $14.67 and value $10,269 on 5/19/2006. Sell 7 UHO FC (May15) at $0.40. Not called in June. Price at 12.25 and value at $8,575. Holding for better Jul15 call price. Exercised get-out price at $11.70 (-15%) on 6/19/2006. There were no calls outstanding that had to be bought back because we were holding. Proceeds $8,170 after commission.			$8,595
500 shares of AXL purchased in April at $17.69 and sell 5 contracts of AXL ED (May$20.00) at $0.60 expiring on 5/20/2006. Not called in May. Price at $17.29 and value $8,645 on 5/19/2006. Sell 5 AXLFD (Jun20) at $0.20. Not called in June. Price at $15.94 and value $7,970 on 6/17/2006. Sell 5 AXL GD (Jul20) at $0.15. Exercised get-out price at $15.04 (-15%) on 7/11/2006 after buying back calls at 0.05. Proceeds $7,500 after commission.	($43)		$16,095
700 shares of SNDA purchased in April at $13.65 and sell 7 contracts of QKU EC (May$15.00) at $0.30 expiring on 5/20/2006. Not called in May. Price at $14.32 and value $10,024 on 5/19/2006. Sell 7 QKUFC (Jun15) at $0.50. Not called in June. Price at $13.13 and value $9,191 on 6/17/2006. Sell 7 QKU GC (Jul15) at $0.20. Not called in July. Price at $13.26 and value $9,282 on 7/22/2006. Sell 7 QKU HC (Aug15) at $0.30.	+$190	still own shares	$16,095
400 shares of MATK purchased in May at $23.79 and sell 4 contracts of KQT FF (Jun$30.00) at $0.35 (closing bid price) expiring on 6/17/2006. Not called in June. Price at $29.48 and value $11,792 on 6/17/2006. Sell 4 KQT GF (Jul30) at $1.95. Not called in July. Price at $26.21 and value $10,484 on 7/22/2006. Sell 4 KQT HF (Aug30) at $0.30.	+$104	still own shares	$16,095
500 shares of TRLG purchased in June at $16.80 and sell 5 contracts of ZJQ GD (Jul$20.00) at $0.35 expiring on 7/22/2006. Not called in July. Price at $26.21 and value $8,800 on 7/22/2006. Sell 5 ZJQ HD (Aug20) at $0.40.	+$183	still own shares	$16,095
500 shares of TOMO purchased in June at $19.00 and sell 5 contracts of QWX GX (Jul$22.50) at $0.40 expiring on 7/22/2006. Not called in July. This stock tanked on July 7, going down to $12.89, well below our get-out price of $16.15. Following our rule for "tanked" stocks, we held the shares for on week, looking for a bounce. We sold all shares on July 14 at $14.05 (a little bounce). Proceeds $7,005 after commission.	($43)		$23,100
500 shares of PALM purchased in June at $17.15 and sell 5 contracts of UPY GD (Jul$20.00) at $0.35 expiring on 7/22/2006. Exercised get-out price at $14.58 (-15%) on 7/17/2006 after buying back calls at 0.05. Proceeds $7,270 after commission.	($43)		$30,370
700 shares of SPC purchased in June at $13.19 and sell 7 contracts of SPC GC (Jul$15.00) at $0.25 expiring on 7/22/2006. Exercised get-out price at $11.21 (-15%) on July 11 after buying back calls at 0.05. Proceeds $7,827 after commission.	($56)		$38,197
400 shares of NWRE purchased in June at $21.03 and sell 4 contracts of QQA GX (Jul$22.50) at $0.75 expiring on 7/22/2006. We had to move down the Analyzer to find a buy/write that was less than $8,884, our available cash. Stock tanked on June 29, opening at $12.16, well below our get-out price of $17.88 (-15%). Following our strategy and hoping for a bounce, we held the "tanked" stock for a week and then sold all shares for $13.98. Proceeds $5,572 after commission.	($36)		$43,769
From Conservative "Stocks-to-Consider" for July 17, 2006
Buy 900 shares of GNSS at $10.60 (closing last trade price) and sell 9 contracts of QFE HV (Aug$12.50) at $0.35 (closing bid price) expiring on 8/19/2006.	+$292	$9,560	$34,209
Buy 700 shares of HOTT at $13.03 (closing last trade price) and sell 7 contracts of UHO HC (Aug$15.00) at $0.60 (closing bid price) expiring on 8/19/2006.	+$400	$9,141	$25,068
Buy 700 shares of NLS at $13.12 (closing last trade price) and sell 7 contracts of NLS HC (Aug$15.00) at $0.25 (closing bid price) expiring on 8/19/2006.	+$155	$9,204	$15,864
Buy 600 shares of ATHR at $15.78 (closing last trade price) and sell 4 contracts of QRA HW (Aug$17.50) at $0.75 (closing bid price) expiring on 8/19/2006.	+$431	$9,488	$6,387
Totals for July:	+$1,724
Portfolio value at July 22, 2006 is $72,226 after $1,724 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.