Investment Enhancing Systems, Inc. – Covered Call Analyzer

$100,0000 Retirement Portfolio Trades for October 2007

NOTE: We had temporarily suspended out get-out rule (at -15%) between July 25 and September 22, 2007 because of the volatility in the markets. We have reinstated the get-out rule effective September 22 (expiration weekend). Any open positions on any list or portfolio will be sold if their price drops 15% below the stock price at September 22.

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	Income*	Cost*	Balance
From September:			$2,172
From Conservative "Stocks-to-Consider" for May 19, 2007 and putting $10,000 into the money available field.
300 shares of AMR at $27.00 and sell 3 contracts of AMR FY (Jun$27.50) at $1.40 expiring on 6/16/2007. Not called in June. Price at $25.91 and value at $7,773 on 6/16/2007. Will now sell Jul27.5 at $0.80. Not called in July. Price at $26.63 and Value at $7,989 on 7/21/2007. Will now sell Aug27.5 at $1.15. Not called in September. Price at $24.26 and Value at $7,278 on 9/22/2007. Will now sell Oct27.5 at $0.35. Not called in October. Price at $23.16 and Value at $6,949 on 10/20/2007. Will now sell Nov27.5 at $0.35.	+$91	Still own shares	$2,172
From Conservative "Stocks-to-Consider" for June 16, 2007 and putting $10,000 into the money available field.
500 shares of NFLX at $19.71 and sell 5 contracts of QNQ GE (Jul$25.00) at $0.25 expiring on 7/21/2007. Not called in July. Price at $19.63 and Value at $9,815 on 7/21/2007. Will now sell Aug22.5 at $0.45.Note that we have lowered the strike price. Not called in August. Price at $17.24 and Value at $8,620 on 7/21/2007. Will now sell Sep22.5 at $0.10. Not called in September. Price at $19.19 and Value at $9,595 on 9/22/2007. Will now sell Oct22.5 at $0.15. Called in October at $22.50. Proceeds $11,230 after commission.			$13,402
500 shares of USU at $19.80 and sell 5 contracts of USU GX (Jul$22.50) at $0.45 expiring on 7/21/2007. Not called in July. Price at $19.52 and Value at $9,760 on 7/21/2007. Will now sell Aug22.5 at $0.30. Not called in August. Price at $14.34 and Value at $5,545 on 7/21/2007. Will now sell Sep15 at $0.35. Note that we have lowered the strike price. Not called in September. Price at $10.40 and Value at $5,200 on 9/22/2007. Will now sell Oct12.5 at $0.20. Note that we have lowered the strike price. Exercised get-out price at $8.84 on October 8 after calling back calls at $0.05.. Proceeds $4,400 after commission.	($43)		$17,802
From Conservative "Stocks-to-Consider" for July 21, 2007 and putting $10,000 into the money available field.
Buy 500 shares of BZH at $19.62 and sell 5 contracts of BZH HE (Aug$25.00) at $0.30 expiring on 8/18/2007. Not called in August. Price at $11.09 and Value at $5,545 on 8/18/2007. Will now sell Sep15 at $0.60. Note that we have lowered the strike price. Not called in September. Price at $10.06 and Value at $5,030 on 9/22/2007. Will now sell Oct15 at $0.20. Exercised get-out price at $8.55 on September 25 after buying back calls at $0.05.. Proceeds $4,265 after commission.	($43)		$22,067
Buy 700 shares of AHM at $12.80 and sell 7 contracts of AHM HC (Aug$15.00) at $0.75 expiring on 8/18/2007. This company went bankrupt as a result of the sub-prime mortgage blowup on August 10. This stock now trades with the symbol AHMMQ.PK . We will continue to hold this stock even though it has minimal value, to see if comes out of bankruptcy. Price at $0.40 and value at $280 at 8/18/2007. Price at $0.95 and value at $665 at 9/22/2007. Price at $0.50 and value at $350 at 10/20/2007.		Still own shares	$22,067
500 shares of NFLX at $19.63 and sell 5 contracts of QNQ HX (Aug$22.50) at $0.45 expiring on 8/18/2007. Not called in August. Price at $17.24 and Value at $8,670 on 8/18/2007. Will now sell Sep20 at $0.20. Note that we have lowered the strike price. Not called in September. Price at $19.19 and Value at $9,595 on 9/22/2007. Will now sell Oct22.5 at $0.15. Called in October at $22.50. Proceeds $11,230 after commission.			$33,297
There were no purchases in August, 2007
From Conservative "Stocks-to-Consider" for September 22, 2007 and putting $10,000 into the money available field.
500 shares of MTH purchased in September at $16.66 and sell 5 contracts of MTH JW (Oct$17.50) at $1.05 expiring on 10/20/2007. Exercised get-out price at $14.16 on September 26 after buying back calls at $0.05. Proceeds $7,060 after commission.	($43)		$40,357
400 shares of RYL purchased in September at $23.98 and sell 4 contracts of RYL JE (Oct$25.00) at $1.25 expiring on 10/20/2007. Not called in October. Price at $23.91 and Value at $9,564 on 10/20/2007. Will now sell Nov27.5 at $0.60. Note that we have raised the strike price.	$224	Still own shares	$40,357
Buy 400 shares of SKX purchased in September at $22.14 and sell 4 contracts of SKX JX (Oct$22.50) at $1.10 expiring on 10/20/2007. Not called in October. Price at $20.95 and Value at $8,380 on 10/20/2007. Will now sell Nov22.5 at $0.90.	$344	Still own shares	$40,357
From Conservative "Stocks-to-Consider" for October 20, 2007 and putting $10,000 into the money available field.
Buy 300 shares of VCLK at $25.98 (closing last trade price) and sell 3 contracts of QCS KF (Nov$30.00) at $1.40 (closing bid price) expiring on 11/17/2007.	$406	$7,814	$32,543
Buy 400 shares of NFLX at $23.24 (closing last trade price) and sell 4 contracts of QNQ KE (Nov$25.00) at $1.10 (closing bid price) expiring on 11/17/2007.	$424	$9,316	$23,227
Buy 400 shares of IDCC at $21.09 (closing last trade price) and sell 4 contracts of DAQ KX (Nov$22.50) at $1.10 (closing bid price) expiring on 11/17/2007.	$424	$8,456	$14,771
Buy 800 shares of STMP at $11.95 (closing last trade price) and sell 8 contracts of JXQ KV (Nov$12.50) at $0.55 (closing bid price) expiring on 11/17/2007.	$418	$9,580	$5,191
Totals for October:	$2,202		$5,191
Portfolio value at October 20, 2007 is $65,519 after $2,202 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.

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