Covered Call Analyzer from Investment Enhancing Systems, Inc.

The Covered Call Analyzer

$100,0000 Retirement Portfolio Trades for October 2008

We suspended our get-out rule on September 15, 2008 due to volatility. They continue suspended for positions opened before October 18, 2008.

This is a rolling portfolio and we will look at open positions and make new trades using monies from called positions each month on expiration weekend.

NOTE: Beginning in April we began taking out call premium up to $2,000 per month rather than all the call premium. The balance is put back into the Retirement portfolio and used to purchase more stock. This should produce $24,000 of income in 2008 from this $100,000 portfolio.

Close Window

	Income*	Cost*	Balance
Balance from September:			$1,417
From Conservative "Stocks-to-Consider" for August 16, 2008 and putting $10,000 into the money available field.
Buy 1000 shares of BIDZ.COM INC (BIDZ) at $9.79 (closing last trade price) and sell 10 call Out-of-the-Money contracts of QGZ IV (Sep$12.50) at $0.60 (closing bid price) expiring on 9/20/2008. Cost is $9,810, and income from sale of the calls is $575 and includes your commissions. Annualized return if called is 347%. Not called on September 20. Price at $10.40 and value at $12,550 at 9/20/2008. Will now sell Oct10 at $1.60. Note that we have lowered the strike price because it is above the purchase price. Not called on October 18. Price at $6.65 and value at $9,225 at 10/18/2008. Will now sell Nov7.5 at $0.45. Note that we have lowered the strike price.	$425	still own shares	$1,417
Buy 300 shares of CBRL GROUP INC (CBRL) at $28.81 (closing last trade price) and sell 3 call Out-of-the-Money contracts of CBQ IF (Sep$30.00) at $1.75 (closing bid price) expiring on 9/20/2008. Cost is $8,663, and income from sale of the calls is $511 and includes your commissions. Annualized return if called is 102%. Not called on September 20. Price at $29.00 and value at $9,721, up 12.2%, at 9/20/2008. Will now sell Oct30 at $1.75. Not called on October 18. Price at $19.14 and value at $7,154 at 10/18/2008. Will now sell Nov20 at $1.35. Note that we have lowered the strike price.	$391	still own shares	$1,417
From Conservative "Stocks-to-Consider" for September 20, 2008 and putting $10,000 into the money available field.
Buy 500 shares of CONTINENTAL AIRLINES (CAL) at $18.40 (closing last trade price) and sell 5 call Out-of-the-Money contracts of CAL JD (Oct$20.00) at $1.95 (closing bid price) expiring on 10/18/2008. Cost is $9,220, and income from sale of the calls is $958 and includes your commissions. Annualized return if called is 246%. Not called on October 18. Price at $16.91 and value at $10,020 at 10/18/2008. Will now sell Nov20 at $1.25.	$608	still own shares	$1,417
Buy 1000 shares of E-HOUSE CHINA HLDGS ADS (EJ) at $9.50 (closing last trade price) and sell 10 call Out-of-the-Money contracts of EJ JB (Oct$10.00) at $0.55 (closing bid price) expiring on 10/18/2008. Cost is $9,520, and income from sale of the calls is $525 and includes your commissions. Annualized return if called is 138%. Not called on October 18. Price at $5.01 and value at $6,130 at 10/18/2008. Will now sell Nov5 at $0.65. Note that we have lowered the strike price.	$625	still own shares	$1,417
Buy 600 shares of CALPINE CORP (CPN) at $14.31 (closing last trade price) and sell 6 call Out-of-the-Money contracts of CPN JC (Oct$15.00) at $0.90 (closing bid price) expiring on 10/18/2008. Cost is $8,606, and income from sale of the calls is $521 and includes your commissions. Annualized return if called is 139%. Not called on October 18. Price at $10.58 and value at $7,210 at 10/18/2008. Will now sell Nov12.5 at $0.60. Note that we have lowered the strike price.	$341	still own shares	$1,417
Buy 300 shares of ICICI BANK LTD ADS (IBN) at $27.99 (closing last trade price) and sell 3 call Out-of-the-Money contracts of IBN JF (Oct$30.00) at $1.75 (closing bid price) expiring on 10/18/2008. Cost is $8,417, and income from sale of the calls is $511 and includes your commissions. Annualized return if called is 169%. Not called on October 18. Price at $16.11 and value at $5,944 at 10/18/2008. Will now sell Nov17.5 at $2.05. Note that we have lowered the strike price.	$601	still own shares	$1,417
Buy 300 shares of TEREX CORP (TEX) at $33.18 (closing last trade price) and sell 3 call Out-of-the-Money contracts of TEX JG (Oct$35.00) at $1.75 (closing bid price) expiring on 10/18/2008. Cost is $9,974, and income from sale of the calls is $511 and includes your commissions. Annualized return if called is 136%. Not called on October 18. Price at $20.35 and value at $6,931 at 10/18/2008. Will now sell Nov25 at $1.10. Note that we have lowered the strike price.	$316	still own shares	$1,417
Buy 700 shares of GERDAU SA ADS (GGB) at $14.22 (closing last trade price) and sell 7 call Out-of-the-Money contracts of GGB JC (Oct$15.00) at $0.70 (closing bid price) expiring on 10/18/2008. Cost is $9,974, and income from sale of the calls is $470 and includes your commissions. Annualized return if called is 130%. Not called on October 18. Price at $6.44 and value at $5,517 at 10/18/2008. Will now sell Nov7.5 at $0.80. Note that we have lowered the strike price.	$540	still own shares	$1,417
Buy 400 shares of FRONTIER OIL CORPORATION (FTO) at $21.63 (closing last trade price) and sell 4 call Out-of-the-Money contracts of FTO JX (Oct$22.50) at $1.25 (closing bid price) expiring on 10/18/2008. Cost is $8,672, and income from sale of the calls is $484 and includes your commissions. Annualized return if called is 122%. Not called on October 18. Price at $10.86 and value at $5,232 at 10/18/2008. Will now sell Nov12.5 at $1.05. Note that we have lowered the strike price.	$404	still own shares	$1,417
Buy 500 shares of B E AEROSPACE INC (BEAV) at $18.71 (closing last trade price) and sell 5 call Out-of-the-Money contracts of BQV JD (Oct$20.00) at $0.85 (closing bid price) expiring on 10/18/2008. Cost is $9,375, and income from sale of the calls is $408 and includes your commissions. Annualized return if called is 144%. Not called on October 18. Price at $9.93 and value at $5,655 at 10/18/2008. Will now sell Nov12.5 at $0.60. Note that we have lowered the strike price.	$283	still own shares	$1,417
Buy 400 shares of DENBURY RESOURCES INC (DNR) at $23.17 (closing last trade price) and sell 4 call Out-of-the-Money contracts of DNR JE (Oct$25.00) at $1.05 (closing bid price) expiring on 10/18/2008. Cost is $9,288, and income from sale of the calls is $404 and includes your commissions. Annualized return if called is 157%. Not called on October 18. Price at $11.40 and value at $5,208 at 10/18/2008. Will now sell Nov15 at $0.65. Note that we have lowered the strike price.	$244	still own shares	$1,417
Totals for October:	$4,534
Taking $2,000 out as income total leaves $2,534 that will be added to cash balance.	$2,534		$3,951
Portfolio value at October 18, 2008 is $78,178* after $29,399 taken as income in seven months. Total return including income is *$94,840,** down (5.2%).

*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 2008, 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 2008.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 $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