Covered Call Analyzer from Investment Enhancing Systems, Inc.

The Covered Call Analyzer

Portfolio Updates

Investment Enhancing Systems, Inc. provides subscribers with four (4) Monitored Portfolios. We are looking for good diversification in each of these portfolios. They are updated each month on expiration weekend (the third weekend of the month). Each of the portfolios start with running the Covered Call Analyzer^TM and "pasting" it's considerations into the portfolio in the Analyzer format:

Buy 100 shares of COBALT INTERNATIONAL (CIE) at $11.00 (closing last trade price) and sell 1 call Out-of-the-Money contracts of CIE1221A12.5 (Jan$12.50) at $0.90 (closing bid price) expiring on1/21/2012. Cost is $1,110, and income from sale of the calls is $79 and includes your commissions. Actual return if called at expiration is 19.7%.

Results for the portfolios from their inception can be viewed by clicking on "Results" tab above. The four active portfolios are defined below.

Our monitored portfolios are described below:

$10,000 Aggressive Covered Call Portfolio - This portfolio is started at the beginning of each calendar year. We start by running the Analyzer on the January expiration weekend with our default parameters and $2,000 for the money available. We assume default commissions as $9.95 per stock trade and $9.95 per call trade plus $1.50 per contract. We consider stocks with high PE or negative earnings, making it an Aggressive portfolio. Five or six stocks are selected as the basis for this portfolio, each with an initial cost of something less than $2,000 to produce a $10,000 portfolio. Extra cash is left in the portfolio for future use. Since it is an aggressive portfolio, we leave whatever we get from the sale of the calls in the portfolio, allowing us to grow the portfolio with both call premium and stock price appreciation. When a stock is called, sold or the get-out price is exercised, the proceeds are used to buy more stocks and sell more calls after running the Analyzer the following month. If stocks are not called, we sell more out-of-the-money calls on those stocks to increase the cash return for that month or sell a stock if it does not have good call premiums. Our objective in this portfolio is to aggressively grow this portfolio. Be aware that Aggressive portfolios have more risk and can produce big up and down movement. These activities are identified in our results for the $10,000 Aggressive Portfolio. We have been publishing this portfolio since 2005.

$25,000 Conservative Covered Call Portfolio - This portfolio is started at the beginning of each calendar year. We start by running the Analyzer on the January expiration weekend with our default parameters and $3,000 for the money available. We assume default commissions as $9.95 per stock trade and $9.95 per call trade plus $1.50 per contract. Eight (8) to ten (10) stocks are selected as the basis for this portfolio, each with an initial cost of something less than $3,000 to produce a $25,000 portfolio. Extra cash is left in the portfolio for future use. We leave whatever we get from the sale of the calls in the portfolio, allowing us to grow the portfolio with both call premium and stock price appreciation. When a stock is called, sold or the get-out price is exercised, the proceeds are used to buy more stocks and sell more calls after running the Analyzer the following month. If stocks are not called, we sell more out-of-the-money calls on those stocks to increase the cash return for that month or sell a stock if it does not have good call premiums. Our objective in this portfolio is to conservatively grow this portfolio. These activities are identified in our results for the $25,000 Conservative Portfolio. We began publishing results for this portfolio in 2012.

$25,000 Aggressive Covered Call Portfolio - This portfolio is started at the beginning of each calendar year. We start by running the Analyzer on the January expiration weekend with our default parameters and $3,000 for the money available. We assume default commissions as $9.95 per stock trade and $9.95 per call trade plus $1.50 per contract. We consider stocks with a high PE or no earnings, making it an very Aggressive portfolio. Eight (8) to ten (10) stocks are selected as the basis for this portfolio, each with an initial cost of something less than $3,000 to produce a $25,000 portfolio. Extra cash is left in the portfolio for future use. We leave whatever we get from the sale of the calls in the portfolio, allowing us to grow the portfolio with both call premium and stock price appreciation. When a stock is called, sold or the get-out price is exercised, the proceeds are used to buy more stocks and sell more calls after running the Analyzer the following month. If stocks are not called, we sell more out-of-the-money calls on those stocks to increase the cash return for that month or sell a stock if it does not have good call premiums. Our objective in this portfolio is to aggressively grow this portfolio. Be aware that Aggressive portfolios have more risk and can produce big up or down movement. These activities are identified in our results for the $25,000 Aggressive Portfolio. We began publishing results for this portfolio in 2012.

$100,000 Covered Call Retirement Portfolio - This portfolio assumes a $100,000 initial principle and that $2,000 will be taken out each month of the year for retirement income. This portfolio is started at the beginning of each calendar year. We start by running the Analyzer on the January expiration weekend with our default parameters and $10,000 for the money available. We assume efault commissions as $19.95 per stock trade and $9.95 per call trade plus $1.50 per contract. We do not consider stocks with high PE or negative earnings, making it a Conservative Retirement portfolio. Ten or eleven stocks are selected by the Analyzer as the basis for this portfolio, each with an initial cost of something less than $10,000 to produce a $100,000 portfolio. Extra cash is left in the portfolio for future use. We take $2,000 each month from the sale of the calls and use it for retirement income. The balance of the call premium goes back into the portfolio. We let the appreciation of called stocks remain in the portfolio to maintain the principal of the portfolio. When a stock is called, sold or the get-out price is exercised, the proceeds are used to buy more stocks and sell more calls after running the Analyzer the following month. If stocks are not called, we sell more out-of-the-money calls on those stocks to increase the income for that month or sell a stock if it does not have good call premiums. Our main objective is to maintain the $100,000 principle throughout the year while taking our the $2,000 each month for income. These activities are identified in our results for our $100,000 Retirement Portfolio on each subsequent expiration weekend. We have been publishing this portfolio since 2005.

Good Luck and Profitable Investing!!!

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