Investment Enhancing Systems, Inc. – Covered Call Analyzer

The Covered Call Analyzer

AGGRESSIVE "STOCKS-TO-CONSIDER" for August, 2008

NOTE: In April 2008, we have increased this list from 10 to 20 and reduced the money available from $10,000 to $5,000 for each stock purchase. The text in the table below is what the Analyzer provides for each buy/write. The Comments row will provide what happened to each of these buy/writes next month on expiration weekend.

On the weekend following the third Friday of each month (expiration weekend), this page will list several stocks that were found using the online Covered Call Analyzer. A review of all the stock/call combinations listed by the Analyzer is made and certain qualifying combinations are listed here. We are using the default values of the Covered Call Analyzer, with the exception of the money available which is set to $5,000 (our default value), and we usually include some stocks selected from the "Stock/Call Combinations with high PE or negative earnings" list, but these are carefully selected after reviewing the data presented in the "Analyze these stock/call combinations" page. We are looking for combinations that provide a high cash premium. These are the ones that the markets are saying should go up. Each listing is exactly what the Analyzer provides when it is run.

Click on the stock symbol and you will be taken to MSN Money stock analysis page for the stock to consider. You can click on the options link on that page to take you to a full set of option chains for the stock

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.

This list was published on August 16, 2008. Next update of this page will be the weekend of September 20, 2008.

Buy 500 shares of DELTA AIR LINES INC (DAL) at $9.41 (closing last trade price) and sell 5 call Out-of-the-Money contracts of DAL IV (Sep$12.50) at $0.50 (closing bid price) expiring on 9/20/2008. Cost is $4,725, and income from sale of the calls is $233 and includes your commissions. Annualized return if called is 388%.
Comments:
Buy 400 shares of NORTHWEST AIRLINES CORP (NWA) at $11.34 (closing last trade price) and sell 4 call Out-of-the-Money contracts of NWA IC (Sep$15.00) at $0.60 (closing bid price) expiring on 9/20/2008. Cost is $4,556, and income from sale of the calls is $224 and includes your commissions. Annualized return if called is 382%.
Comments:
Buy 500 shares of BIDZ.COM INC (BIDZ) at $9.79 (closing last trade price) and sell 5 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 $4,915, and income from sale of the calls is $283 and includes your commissions. Annualized return if called is 343%.
Comments:
Buy 300 shares of HUNTSMAN CORP (HUN) at $14.26 (closing last trade price) and sell 3 call Out-of-the-Money contracts of HUN IW (Sep$17.50) at $0.75 (closing bid price) expiring on 9/20/2008. Cost is $4,298, and income from sale of the calls is $211 and includes your commissions. Annualized return if called is 282%.
Comments:
Buy 500 shares of US AIRWAYS GROUP INC (LCC) at $9.02 (closing last trade price) and sell 5 call Out-of-the-Money contracts of LCC IB (Sep$10.00) at $1.10 (closing bid price) expiring on 9/20/2008. Cost is $4,530, and income from sale of the calls is $533 and includes your commissions. Annualized return if called is 231%.
Comments:
Buy 300 shares of SOLARFUN POWER HLDGS ADR (SOLF) at $15.17 (closing last trade price) and sell 3 call Out-of-the-Money contracts of QFG IW (Sep$17.50) at $1.15 (closing bid price) expiring on 9/20/2008. Cost is $4,571, and income from sale of the calls is $331 and includes your commissions. Annualized return if called is 230%.
Comments:
Buy 400 shares of NORTHWEST AIRLINES CORP (NWA) at $11.34 (closing last trade price) and sell 4 call Out-of-the-Money contracts of NWA IV (Sep$12.50) at $1.35 (closing bid price) expiring on 9/20/2008. Cost is $4,556, and income from sale of the calls is $524 and includes your commissions. Annualized return if called is 222%.
Comments:
Buy 500 shares of RASER TECHNOLOGIES INC (RZ) at $8.63 (closing last trade price) and sell 5 call Out-of-the-Money contracts of RZ IB (Sep$10.00) at $0.50 (closing bid price) expiring on 9/20/2008. Cost is $4,335, and income from sale of the calls is $233 and includes your commissions. Annualized return if called is 216%.
Comments:
Buy 400 shares of SANGAMO BIOSCIENCES INC (SGMO) at $10.74 (closing last trade price) and sell 4 call Out-of-the-Money contracts of UGD IV (Sep$12.50) at $0.50 (closing bid price) expiring on 9/20/2008. Cost is $4,316, and income from sale of the calls is $184 and includes your commissions. Annualized return if called is 210%.
Comments:
Buy 500 shares of WESTERN REFINING INC (WNR) at $9.06 (closing last trade price) and sell 5 call Out-of-the-Money contracts of WNR IB (Sep$10.00) at $0.80 (closing bid price) expiring on 9/20/2008. Cost is $4,550, and income from sale of the calls is $383 and includes your commissions. Annualized return if called is 191%.
Comments:
Buy 500 shares of DELTA AIR LINES INC (DAL) at $9.41 (closing last trade price) and sell 5 call Out-of-the-Money contracts of DAL IB (Sep$10.00) at $1.15 (closing bid price) expiring on 9/20/2008. Cost is $4,725, and income from sale of the calls is $558 and includes your commissions. Annualized return if called is 184%.
Comments:
Buy 200 shares of RENESOLA LTD ADR (SOL) at $18.13 (closing last trade price) and sell 2 call Out-of-the-Money contracts of SOL ID (Sep$20.00) at $1.40 (closing bid price) expiring on 9/20/2008. Cost is $3,646, and income from sale of the calls is $267 and includes your commissions. Annualized return if called is 178%.
Comments:
Buy 500 shares of CHINA SUNERGY CO LTD ADS (CSUN) at $9.05 (closing last trade price) and sell 5 call Out-of-the-Money contracts of FTU IB (Sep$10.00) at $0.65 (closing bid price) expiring on 9/20/2008. Cost is $4,545, and income from sale of the calls is $308 and includes your commissions. Annualized return if called is 175%.
Comments:
Buy 300 shares of YINGLI GREEN ENERGY ADS (YGE) at $15.64 (closing last trade price) and sell 3 call Out-of-the-Money contracts of YGE IW (Sep$17.50) at $0.80 (closing bid price) expiring on 9/20/2008. Cost is $4,712, and income from sale of the calls is $226 and includes your commissions. Annualized return if called is 169%.
Comments:
Buy 300 shares of BOYD GAMING CORP (BYD) at $13.52 (closing last trade price) and sell 3 call Out-of-the-Money contracts of BYD IC (Sep$15.00) at $0.75 (closing bid price) expiring on 9/20/2008. Cost is $4,076, and income from sale of the calls is $211 and includes your commissions. Annualized return if called is 162%.
Comments:
Buy 300 shares of VERIFONE HOLDINGS INC (PAY) at $16.00 (closing last trade price) and sell 3 call Out-of-the-Money contracts of PAY IW (Sep$17.50) at $1.10 (closing bid price) expiring on 9/20/2008. Cost is $4,820, and income from sale of the calls is $316 and includes your commissions. Annualized return if called is 161%.
Comments:
Buy 500 shares of REGIONS FINANCIAL CORP (RF) at $9.10 (closing last trade price) and sell 5 call Out-of-the-Money contracts of RF IB (Sep$10.00) at $0.55 (closing bid price) expiring on 9/20/2008. Cost is $4,570, and income from sale of the calls is $258 and includes your commissions. Annualized return if called is 157%.
Comments:
Buy 300 shares of HUNTSMAN CORP (HUN) at $14.26 (closing last trade price) and sell 3 call Out-of-the-Money contracts of HUN IC (Sep$15.00) at $1.50 (closing bid price) expiring on 9/20/2008. Cost is $4,298, and income from sale of the calls is $436 and includes your commissions. Annualized return if called is 155%.
Comments:
Buy 300 shares of DELTA PETROLEUM CORP (DPTR) at $16.10 (closing last trade price) and sell 3 call Out-of-the-Money contracts of QHR IW (Sep$17.50) at $1.05 (closing bid price) expiring on 9/20/2008. Cost is $4,850, and income from sale of the calls is $301 and includes your commissions. Annualized return if called is 151%.
Comments:
Buy 700 shares of ISTAR FINANCIAL INC (SFI) at $6.97 (closing last trade price) and sell 7 call Out-of-the-Money contracts of SFI IU (Sep$7.50) at $0.50 (closing bid price) expiring on 9/20/2008. Cost is $4,899, and income from sale of the calls is $330 and includes your commissions. Annualized return if called is 145%.
Comments:
Income from sale of calls is +$6,343.
Cost of these ten (20) stocks is $90,492. At August 16, 2008 (expiration weekend), this list value is $96,138, up 5.1%.

*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.

top