The Covered Call Analyzer
$100,0000 Retirement Portfolio Trades for May 16, 2009
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.
| Income* | Cost* |
Balance |
|
|
From April: |
$3,837 |
||
| From Conservative "Stocks-to-Consider" for April 18, 2009 and putting $10,000 into the money available field. | |||
| Buy 1400 shares of MECHEL OAO (MTL) at $6.68 (closing last trade price) and sell 14 call Out-of-the-Money contracts of MTL EU (May$7.50) at $0.50 (closing bid price) expiring on 5/16/2009. Cost is $9,372, and income from sale of the calls is $669 and includes your commissions. Annualized return if called is 250%. Exercised get-out price at $5.68 (-15%) on April 30 after buying back calls at $0.05. Proceeds $7,932 after commission. Final value including sale of all calls is $8,520, down (9.1%). | ($101) | $11,769 | |
|
Buy 1400 shares of EAGLE
BULK SHIPPING INC (EGLE)
at $6.89 (closing last trade price) and sell 14 call
Out-of-the-Money contracts of QEK EU (May$7.50) at $0.55 (closing bid
price) expiring on 5/16/2009. Cost is $9,666, and income from sale of the
calls is $739 and includes your commissions. Annualized return if
called is 212%.
Exercised get-out price at $5.86 (-15%) on April 20 after buying back calls at $0.05. Proceeds $8,184 after commission. Final value including sale of all calls is $8,842, down (8.5%). |
($101) | $19,953 | |
|
Buy 600 shares of RAYMOND
JAMES FINANCIAL (RJF)
at $16.28 (closing last trade price) and sell 6 call
Out-of-the-Money contracts of RJF EW (May$17.50) at $1.05 (closing bid
price) expiring on 5/16/2009. Cost is $9,788, and income from sale of the
calls is $611 and includes your commissions. Annualized return if
called is 176%.
Not called on May 16. Will now sell Jun17.5 at $0.60. Price at $15.48 and value at $10,240 , up 4.6% on May 16 including sale of all calls. |
$341 | $19,953 | |
|
Buy 800 shares of ROYAL
CARIBBEAN CRUISES (RCL)
at $11.98 (closing last trade price) and sell 8 call
Out-of-the-Money contracts of RCL EV (May$12.50) at $1.10 (closing bid
price) expiring on 5/16/2009. Cost is $9,604, and income from sale of the
calls is $858 and includes your commissions. Annualized return if
called is 170%.
Called on May 16 at $12.50. Proceeds $9,980 after commission. Total return including call premium is $10,838, up 12.9%. |
$29,933 | ||
| Buy 600 shares of PENN VIRGINIA CORP (PVA) at $14.41 (closing last trade price) and sell 6 call Out-of-the-Money contracts of PVA EC (May$15.00) at $0.95 (closing bid price) expiring on 5/16/2009. Cost is $8,666, and income from sale of the calls is $551 and includes your commissions. Annualized return if called is 133%. Called on May 16 at $15.00. Proceeds $8,980 after commission. Total return including call premium is $9,531, up 10.0%. | $38,913 | ||
| Buy 400 shares of HOLLY CORP (HOC) at $23.98 (closing last trade price) and sell 4 call Out-of-the-Money contracts of HOC EE (May$25.00) at $1.40 (closing bid price) expiring on 5/16/2009. Cost is $9,612, and income from sale of the calls is $544 and includes your commissions. Annualized return if called is 126%. Not called on May 16. Will now sell Jun25 at $1.00. Price at $23.53 and value at $10,340 , up 7.6% on May 16 including sale of all calls. | $384 | $38,913 | |
| Buy 400 shares of HCP INC (HCP) at $21.79 (closing last trade price) and sell 4 call Out-of-the-Money contracts of HCP EX (May$22.50) at $1.40 (closing bid price) expiring on 5/16/2009. Cost is $8,736, and income from sale of the calls is $544 and includes your commissions. Annualized return if called is 121%. Not called on May 16. Will now sell Jun22.5 at $0.80. Price at $20.60 and value at $9,088 , up 4.0% on May 16 including sale of all calls. | $304 | $38,913 | |
| Buy 400 shares of GARMIN LTD (GRMN) at $22.00 (closing last trade price) and sell 4 call Out-of-the-Money contracts of GQR EX (May$22.50) at $1.40 (closing bid price) expiring on 5/16/2009. Cost is $8,820, and income from sale of the calls is $544 and includes your commissions. Annualized return if called is 107%. Not called on May 16. Will now sell Jun22.5 at $0.55. Price at $20.74 and value at $9,044 , up 2.5% on May 16 including sale of all calls. | $204 | $38,913 | |
| Buy 400 shares of GUESS? INC (GES) at $24.44 (closing last trade price) and sell 4 call Out-of-the-Money contracts of GES EE (May$25.00) at $1.30 (closing bid price) expiring on 5/16/2009. Cost is $9,796, and income from sale of the calls is $504 and includes your commissions. Annualized return if called is 94%. Not called on May 16. Will now sell Jun25 at $0.95. Price at $22.62 and value at $9,916 , up 1.2% on May 16 including sale of all calls. | $364 | $38,913 | |
| Buy 500 shares of HERBALIFE LTD (HLF) at $18.63 (closing last trade price) and sell 5 call Out-of-the-Money contracts of HLF ED (May$20.00) at $0.80 (closing bid price) expiring on 5/16/2009. Cost is $9,335, and income from sale of the calls is $383 and includes your commissions. Annualized return if called is 146%. Called on May 16 at $20.00. Proceeds $9,980 after commission. Total return including call premium is $10,363, up 11.0%. | $48,893 | ||
| Buy 300 shares of TERRA
INDUSTRIES INC (TRA)
at $28.19 (closing last trade price) and sell 3 call
Out-of-the-Money contracts of TRA EF (May$30.00) at $1.40 (closing bid
price) expiring on 5/16/2009. Cost is $8,477, and income from sale of the
calls is $406 and includes your commissions. Annualized return if
called is 143%.
Not called on May 16. Will now sell Jun30 at $1.65. Price at $28.36 and value at $9,394 , up 10.8% on May 16 including sale of all calls. |
$481 | $48,893 | |
| From Conservative "Stocks-to-Consider" for May 16, 2009 and putting $10,000 into the money available field. | |||
Buy 1500 shares of EAGLE BULK SHIPPING INC (EGLE) at $6.59 (closing last trade price) and sell 15 call Out-of-the-Money contracts of QEK FU (Jun$7.50) at $0.55 (closing bid price) expiring on 6/20/2009. Cost is $9,905, and income from sale of the calls is $793 and includes your commissions. Annualized return if called is 225%. |
$793 | $9,905 | $38,988 |
Buy 600 shares of BARCLAYS PLC ADR (BCS) at $15.86 (closing last trade price) and sell 6 call Out-of-the-Money contracts of BCS FW (Jun$17.50) at $1.15 (closing bid price) expiring on 6/20/2009. Cost is $9,536, and income from sale of the calls is $671 and includes your commissions. Annualized return if called is 179%. |
$671 | $9,536 | $29,452 |
Buy 600 shares of ROYAL CARIBBEAN CRUISES (RCL) at $14.30 (closing last trade price) and sell 6 call Out-of-the-Money contracts of RCL FC (Jun$15.00) at $1.20 (closing bid price) expiring on 6/20/2009. Cost is $8,600, and income from sale of the calls is $701 and includes your commissions. Annualized return if called is 134%. |
$701 | $8,600 | $20,852 |
Buy 400 shares of GOODRICH PETROL CORP (GDP) at $23.11 (closing last trade price) and sell 4 call Out-of-the-Money contracts of GDP FE (Jun$25.00) at $1.50 (closing bid price) expiring on 6/20/2009. Cost is $9,264, and income from sale of the calls is $584 and includes your commissions. Annualized return if called is 149%. |
$584 | $9,264 | $11,588 |
Buy 600 shares of TRINITY INDUSTRIES INC (TRN) at $14.41 (closing last trade price) and sell 6 call Out-of-the-Money contracts of TRN FC (Jun$15.00) at $1.00 (closing bid price) expiring on 6/20/2009. Cost is $8,666, and income from sale of the calls is $581 and includes your commissions. Annualized return if called is 110%. |
$581 | $8,666 | $2,822 |
|
Totals for May: |
$5,206 | $45,971 | $2,822 |
|
Taking $2,000 out as income total leaves $3,206 that will be added to cash balance: |
$6,028 | ||
| Portfolio value at April 18, 2009 is $111,251* after $10,000 taken as income in five months. Total return including income is $121,251*, up 21.3% The DOW average for the year so far is down (0.2%) |
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 17, 2009, 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 17, 2009.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.