Investment Enhancing Systems, Inc. – Covered Call Analyzer

$100,0000 Retirement Portfolio Trades for March 2007

NOTE: The markets took a big one day hit on February 27, 2007 and became very volatile in the weeks following. We did not panic sell at that time. Instead we held all stocks, even though some got close to or went below our get-out price of -15%. We continued to hold out stocks through expiration in March (the 17th) in anticipation (and hope) of some rebound.

Close Window

	Income*	Cost*	Balance
From February:			$1,795
From Conservative "Stocks-to-Consider" for January 22, 2007 and putting $10,000 into the money available field.
400 shares of NFLX purchased in January at $22.56 and sell 4 contracts of QNQ BE (Feb$25.00) at $0.75 expiring on 2/17/2007. Not called in February. Price at $22.87 and value at $9,148 on 2/17/2007. Sold Mar25 at $0.25. Did not reach get-out price during volatility period. Not called in March. Price at $21.02 and value at $8,408 on 3/17/2007. Will now sell Apr22.5 at $0.35. Note that we have lowered the strike price since it is very close to the purchase price.	$124	Still own shares	$1,795
500 shares of BEBE purchased in January at $17.95 and sell 5 contracts of KUO BD (Feb$20.00) at $0.30 expiring on 2/17/2007. Not called in February. Price at $19.00 and value at $9,500 on 2/17/2007. Sold Mar20 at $0.35. Not called in March. Price at $17.05 and value at $8,525 on 3/17/2007. Will now sell Mar20 at $0.55. Note that we have lowered the strike price since is is very close to the purchase price.	$257	Still own shares	$1,795
500 shares of SNIC purchased in January at $18.01 and sell 5 contracts of QNI BD (Feb$20.00) at $0.30 expiring on 2/17/2007. Stock price dropped below the get-out price of $15.31 (-15%) on February 17, the last day before expiration. We did not sell and the stock was not called in February. Price at $14.70 and value at $7,350 on 2/17/2007. Holding since the news and trend during the day was up slightly. Waited one week for bounce and sold all shared at $15.27 on February 23 to close out position. Proceeds $7,635 after commission.			$9,430
700 shares of TOMO purchased in January at $13.77and sell 7 contracts of QWX BC (Feb$15.00) at $0.35expiring on 2/17/2007. Not called in February. Price at $12.79 and value at $8,953 on 2/17/2007. Sold Mar15 at $0.20. The price went below our get-out price ($11.70), dipped to $11.40, and then was halted. It rebounded nicely after the halt. Not called in March. Price at $14.44 and value at $10,108 on 3/17/2007. Will now sell Apr15 at $0.15.	$84	Still own shares	$9,430
From Conservative "Stocks-to-Consider" for February 17, 2007 and putting $10,000 into the money available field.
500 shares of NFI purchased in February at $17.19 and sell 5 contracts of NFI CX (Mar$22.50) at $0.50 expiring on 3/17/2007. Stock tanked on February 22, before the volatility period. We held the stock for five trading days (one week) anticipating a bounce and sold all shares at $8.15 on February 28 to close out position. Proceeds $4,055 after commission. Big negative hit that we will have to dig out of.			$13,485
500 shares of IIG purchased in February at $19.90 and sell 5 contracts of IIG CX (Mar$22.50) at $0.95 expiring on 3/17/2007. Did not reach get-out price during volatility period. Not called in March. Price at $20.25 and value at $10,125 on 3/17/2007. Will now sell Apr22.5 at $0.80.	$382	Still own shares	$13,485
400 shares of GGC purchased in February at $20.17 and sell 4 contracts of GGC CX (Mar$22.50) at $0.30 expiring on 3/17/2007. Price dipped below the get-out price ($17.14), on March 13, but we did not sell. Not called in March. Price at $17.65 and value at $7,060 on 3/17/2007. Will now sell Apr20 at $0.30. Note that we have lowered the strike price since it is very close to the purchase price.	$104	Still own shares	$13,485
700 shares of FMT purchased in February at $13.72 and sell 7 contracts of FMT CC (Mar$15.00) at $0.35 expiring on 3/17/2007. Stock tanked on February 28, during the volatility period. We held the stock for five trading days (one week) anticipating a bounce and sold all shares at $8.56 on March 7 to close out position. Proceeds $5,972 after commission. Another big negative hit that we will have to dig out of.			$19,457
200 shares of ILMN purchased in February at $36.81 and sell 2 contracts of IQA CH (Mar$40.00) at $0.75 expiring on 3/17/2007. Exercised get-out price at $31.29 (-15%) on March 5 after buying back calls at $0.05. Proceeds $6,238 after commission.	($23)		$25,695
300 shares of ISLE purchased in February at $27.55 and sell 3 contracts of QEP CF (Mar$30.00) at $0.45 expiring on 3/17/2007. Did not reach get-out price during volatility period. Not called in March. Price at $24.97 and value at $7,491 on 3/17/2007. Holding.		Still own shares	$25,695
400 shares of MATK purchased in February at at $23.28 and sell 4 contracts of KQT CE (Mar$25.00) at $0.65 expiring on 3/17/2007. Did not reach get-out price during volatility period. Not called in March. Price at $20.25 and value at $8,100 on 3/17/2007. Holding.		Still own shares	$25,695
From Conservative "Stocks-to-Consider" for March 17, 2007 and putting $10,000 into the money available field.
Buy 700 shares of SWIR at $13.64 (closing last trade price) and sell 7 contracts of IYQ DC (Apr$15.00) at $0.25 (closing bid price) expiring on 4/21/2007.	+$155	$9,568	$16,127
Buy 200 shares of CAL at $36.83 (closing last trade price) and sell 2 contracts of CAL DH (Apr$40.00) at $1.15 (closing bid price) expiring on 4/21/2007.	+$217	$7,386	$8,741
Buy 200 shares of IBN at $36.91 (closing last trade price) and sell 2 contracts of IBN DH (Apr$40.00) at $0.90 (closing bid price) expiring on 4/21/2007.	+$167	$7,402	$1,339
Totals for March:	$1,467		$1,339
Portfolio value at March 17, 2007 is $85,512 after $1,467 taken as income .

*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 2007, 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 2007. 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. 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.

top