Investment Enhancing Systems, Inc. – Covered Call Analyzer

$10,0000 Retirement Portfolio Trades for May 2005

	Income*	Cost*	Balance
300 shares of DRIV purchased at $32.34 in January. Sell 3 Feb40 at $0.65 not called. Price at $33.00 and value $9,900 on 2/20/05. Sell 3 Mar35 at $1.30. Strike price lowered to 35, still above purchase price. Not called in March. Price at $31.38 and value $9,714 on 3/18/05. Sell 3 Apr35 at $0.80. Not called in April. Price at $28.21 and value $8,463 on 4/16/05. Sold May35 at 0.45. Exercised get-out price at $27.49 after buying back calls at 0.17. Proceeds $8,227 after commission.	($65)		$10,749
700 shares of RMBS purchased at $13.19 in Mar. Sell 7 Apr15 at $0.35. Not called. Price at $13.78 and value $9,646 on 4/16/05. Sell 7 Apr15 at $0.45. Called at $15.00 in May. Proceeds $10,480 after commission.			$21,229
200 shares of CECO purchased at $37.10 in March. Sell 2 Apr40 at $0.85. Not called in April. Price at $32.73 and value $6,546 on 4/16/2005. Sell 2 May40 at $0.30. Exercised get-out price at $31.36 after buying back calls at 0.08. Proceeds $6,252 after commission.	($29)		$27,481
300 shares of SNDK purchased at $28.01 in March. Sell 3 Apr30 at $0.70. Not called in April. Price at $26.16 and value $7,848 on 4/16/2005. Sell 3 May30 at $0.60. Exercised get-out price at $23.81 after buying back calls at 0.13. Proceeds $7,123 after commission.	($53)		$34,604
300 shares of SLAB purchased at $29.36 in March. Sell 3 Apr40 at $1.10. Not called in April. Price at $27.34 and value $8,202 on 4/16/2005. Sell 3 May30 at $0.80. Not called in May. Price at $27.33 and value $8,199 on 5/20/2005. Will now sell Jun30 at 0.20.	$196	still own shares	$34,604
300 shares of XMSR purchased at $29.37 in March using Aggressive List. Sell 3 Apr30 at $1.15. Not called in April. Price at $27.50 and value $8,250 on 4/16/2005. Sell 3 May30 at $0.75. Called at $30.00 in May. Proceeds $8,980 after commission.			$43,584
900 shares of UTSI purchased in April at $10.22. Sell 9 Apr12.5 at $0.30. Exercised get-out price at $8.69 after buying back calls at 0.09. Proceeds $7,821 after commission.	($104)		$51,405
800 shares of CYD purchased in April at $11.09. Sell 8 Apr12.5 at $0.60. Not called in May. Price at $12.20 and value $9,760 on 5/20/2005. Will now sell Jun12.5 at 0.80.	$618	still own shares	$51,405
500 shares of PLAY purchased in April at $18.03. Sell 5 Apr20 at $0.90. Not called in May. Price at $18.92 and value $9,460 on 5/20/2005. Will now sell Jun20 at 0..45.	$208	still own shares	$51,405
300 shares of IMCL purchased in April at $31.37. Sell 3 May at $0.85. Not called in May. Price at $33.07 and value $9,921 on 5/20/2005. Will now sell Jun35 at 0.90.	$256	still own shares	$51,405
500 shares of MYGN purchased in April at $17.15 using Aggressive List. Sell 5 Apr22.5 at $0.95. Not called in May. Price at $17.33 and value $8,665 on 5/20/2005. Will now sell Jun17.5 at 0.75. Strike price lowered to 17.5, still above purchase price.	$358	still own shares	$51,405
From Conservative "Stocks-to-Consider" for May 20, 2005
Buy 800 shares of TASR at $11.13. Sell 8 Jun12.5 at $0.55.	$418	$8,924	$42,481
Buy 600 shares of NFLX at $15.89. Sell 6 Jun17.5 at $0.55.	$311	$9,554	$32,927
Buy 600 shares of OVTI at $16.18. Sell 6 Jun17.5 at $0.55.	$311	$9,728	$23,199
Buy 300 shares of DWA at $32.15. Sell 3 Jun35 at $0.70.	$196	$9,665	$13,544
Buy 600 shares of OS at $16.61. Sell 6 Apr17.5 at $0.80	$461	$9,986	$3,558
Totals for May:	$3,082		$3,558
Portfolio value at May 21, 2005 is $97,520 after $3,082 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 2005, 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 2005. 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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