Systematic Covered Writing

... more than just covered calls!

(The SysCW Home Page)

Option Assigned Example

THE STOCK: CY - Cypress Semiconductor Corporation
POSITION ESTABLISHED DATE: January 26, 2004
ASSIGNMENT DATE: February 17, 2007

			Systematic Covered Writing				KK
			. . . More than just covered calls . . .
			SysCW Position Tracker

Historical Data			Closed Position
				Stock	Cash	Total Cash	Annualized
Date	Strategy	Status	Position	Investment	Generated	Generated	Return
26-Jan-04	Initial Stock Purchase		Buy 100 CY @ 22.17	($2,258.35)
			Cypress Semiconductor Corporation
26-Jan-04	Initial Call Option		Sell Sep $22.50 Call	Expired 9/17/04	$253.63
1-Nov-04	Dollar Cost Averaging		Buy 100 CY @ 10.55	($1,062.00)
$CA	$3,320.35	200 @ $16.60	Combined Position
1-Nov-04	Interim Trade		Sell two Mar $12 calls @ .45	Rolled 3/17/05	$79.99
17-Mar-05	Buy Back & Roll Out & Up		Buy two Mar $12.50 calls @ .65		($139.50)
17-Mar-05	Interim Trade		Sell two '06 Jan $15 LEAPS @ 1.45	Rolled 1/19/06	$280.49
19-Jan-06	Buy Back & Roll Out & Up		Buy two Jan $15 calls @ 1.25		($259.50)
19-Jan-06	Appreciated Trade		Sell two '07 Jan $17.50 LEAPS @ 2.25	Expired 1/19/07	$440.48
29-Jan-07	New Continued Trade		Sell two Feb $17.50 calls 1.05	Exercised 2/17/07	$200.49
17-Feb-07	Stock Assigned		Sell 200 CY @ 17.50	$3,482.89	$162.54
17-Feb-07			Net Cash Gain			$1,018.62	Annualized
1118	Days		Net Percentage Gain			30.68%	10.02%

COMMENTS: This position ended positively thanks to the use of the Dollar Cost Average strategy in 2004. Given that the stock lost over half it's initial value, the annualized cash generated is acceptable.
CONCLUSION: When a position is closed and back-to-cash, the net profit and or loss of a position can be precisely determined. This is because both the long stock position and the short option position have been liquidated. Until this happens, one really does not know what will be made, or what could be lost.

This portion of the Web site is dedicated to providing the closing activity for every position established and provided to subscribers. To that end, you will find that the number of examples increase monthly.

PLEASE NOTE THAT THIS EXAMPLE IS NOT TO BE CONSIDERED AS A RECOMMENDATION TO INVEST IN CY STOCK OR ANY OTHER EQUITY. THE INFORMATION IS PROVIDED FOR EDUCATIONAL PURPOSES ONLY. THERE IS NO GUARANTEE THAT SIMILAR TRANSACTIONS CAN BE EXECUTED IN THE FUTURE. INVESTING IN THE STOCK MARKET INVOLVES RISKS, DO SO ONLY WITH A KNOWLEDGE AND UNDERSTANDING OF THE RISKS INVOLVED!
The information provided above is for informational purposes only, and no mention of a particular security constitutes a recommendation to buy, sell, or hold that or any other security, or that any particular security, portfolio of securities, transaction, investment strategy is suitable for any specific person. You further understand that the Covered Writer will not advise you personally concerning the nature, potential, value or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. To the extent any of the information available on this website may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person. Always remember that past results are not necessarily indicative of future performance.
These are the terms of use. Why are they here? Because the examples provided are real. The transactions actually took place. The dates are real, the positions are real. Some transactions will have been executed on the day you receive the email. What you are agreeing to, is the fact that in no way is it being suggesting that you can, or should, enter a similar position. Why? Because that would be providing investment advice and the Covered Writer is not authorized to do that. There is also no guarantee that similar transactions could be executed at any time in the future. Only licensed brokers are allowed to provide investment advice. Therefore, you are agreeing that the preceding example was provide for 'educational purposes' for the sole purpose of illustrating the Systematic Covered Writing strategies.
Thank you! Bq

SYSTEMATIC COVERED WRITING
Copyright © 2005. All rights reserved.
Revised: 04/28/07