Investment Enhancing Systems, Inc. – Covered Call Analyzer

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Note: In all of our lists and portfolios, we have established a get-out price which we exercise when the stock price drops 15%. If this happens during the month, we will get-out and report the sale of the stock and the buy-back of the calls at the next expiration weekend postings.

	Income*	Cost*	Balance
Cash balance from August:			$408
400 shares of MATK purchased in May at $23.79 and sell 4 contracts of KQT FF (Jun$30.00) at $0.35 expiring on 6/17/2006. Not called in June. Price at $29.48 and value $11,792 on 6/17/2006. Sell 4 KQT GF (Jul30) at $1.95. Not called in July. Price at $26.21 and value $10,484 on 7/22/2006. Sell 4 KQT HF (Aug30) at $0.30. Not called in August. Price at $28.63 and value $11,452 on 8/19/2006. Sell 4 KQT IF (Sep30) at $1.10. Not called in September. Price at $21.87 and value $8,748 on 9/16/2006. Sell 4 KQT JE (Oct25) at $0.25. Note that we have lowered the strike price to $25.00 since it is still above the initial purchase price.	+$84	still own shares	$408
700 shares of HOTT purchased in July at $13.03 and sell 7 contracts of UHO HC (Aug$15.00) at $0.60 expiring on 8/19/2006. Not called in August. Price at $11.75 and value $8,225 on 8/19/2006. Holding, waiting for a better call price. Exercised get-out price at $11.08 on August 28. There were no calls to buy back since we were holding the stock waiting for a better call price. Proceeds $7,736.			$8,114
700 shares of NLS purchased in July at $13.12 and sell 7 contracts of NLS HC (Aug$15.00) at $0.25 expiring on 8/19/2006. Not called in August. Price at $13.06 and value $9,142 on 8/19/2006. Holding, waiting for a better call price. Price at $13.77 and value $9,637 on 9/16/2006. Sell 7 NLS JC (Oct15) at $0.20.	+$119	still own shares	$8,114
600 shares of ATHR purchased in July at $15.78 and sell 6 contracts of QRA HW (Aug$17.50) at $0.75 expiring on 8/19/2006. Not called in August. Price at $17.13 and value $10,278 on 8/19/2006. Sell 6 QRA IW (Sep17.5) at $0.95. Not called in September. Price at $17.49 and value $10,494 on 9/16/2006. Sell 6 C HW J (Oct17.5) at $1.25.	+$731	still own shares	$8,114
800 shares of RMBS purchased in August at $11.95 and sell 8 contracts of BNQ IC (Sep$15.00) at $0.25 expiring on 9/16/2006. Called in September at $15.00. Proceeds $11,980.			$20,094
500 shares of EPL purchased in August at $17.94 and sell 5 contracts of EPL ID (Sep$20.00) at $0.30 expiring on 9/16/2006. Called in September at $20.00. Proceeds $9,980.			$30,074
700 shares of MTEX purchased in August at $14.02 and sell 7 contracts of RYQ IC (Sep$15.00) at $0.70 expiring on 9/16/2006. Called in September at $15.00. Proceeds $10,480.			$40,554
500 shares of MFLX purchased in August at $18.49 and sell 5 contracts of FUX ID (Sep$20.00) at $0.60 expiring on 9/16/2006. Called in September at $20.00. Proceeds $9,980.			$50,534
From Conservative "Stocks-to-Consider" for September 16, 2006
Buy 500 shares of ATHR at $17.49 (closing last trade price) and sell 5 contracts of QRA JD (Oct$20.00) at $0.45 (closing bid price) expiring on 10/21/2006.	+$208	$8,765	$41,769
Buy 500 shares of RMBS at $18.11 (closing last trade price) and sell 5 contracts of BNQ JD (Oct$20.00) at $1.10 (closing bid price) expiring on 10/21/2006.	+$533	$9,075	$32,694
Buy 700 shares of TARO at $13.73 (closing last trade price) and sell 7 contracts of QTT JC (Oct$15.00) at $0.70 (closing bid price) expiring on 10/21/2006.	+$470	$9,631	$23,063
Buy 400 shares of GOLD at $20.53 (closing last trade price) and sell 4 contracts of GUD JX (Oct$22.50) at $0.55 (closing bid price) expiring on 10/21/2006.	+$204	$8,232	$14,831
Buy 400 shares of NFLX at $22.72 (closing last trade price) and sell 4 contracts of QNQ JE (Oct$25.00) at $0.50 (closing bid price) expiring on 10/21/2006.	+$184	$9,108	$5,753
Totals for September:	+$2,533		$5,753
Portfolio value at September 16, 2006 is $79,543 after $2,533 taken as income.

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 2006, 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 2006. 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.