Systematic Covered Writing

... more than just covered calls!

(The SysCW Home Page)

Option Assigned Examples

THE STOCK: CYBX - Cyberonics, Inc.
POSITION ESTABLISHED DATE: August 16, 2006

ASSIGNMENT DATE: January 19, 2007

ANTICIPATION: The complete history of the position is maintained indefinitely in the Position Tracker. The Tracker becomes the SysCW evidence manual over time. See . . . some CYBX positions were established at a low . . .

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

Historical Data			Open Position
				Stock	Cash	Total Cash	Value as of
Date	Strategy	Status	Position	Investment	Generated	Generated	3-Jan-07
16-Aug-06	Initial Stock Purchase		Buy 100 CYBX @ 15.2879	($1,538.78)			$2,072.00
	Current Price	$20.72	Cyberonics, Inc.
16-Aug-06	Initial Call Option		Sell Jan $15 call @ 2.75		$264.25
	Cash in Hand	17.17%				$264.25

COMMENTS: As of January 3, 2007, there are about three weeks until expiration. The data above is how the position looks at this time. A $15 strike price with the stock trading at $20.72 would lead one to believe that this stock is 'going away'. With the strike price just slightly below the purchase price, there will be very little give back when the option is exercised. The net back-to-cash results will be displayed below (assuming the price holds).
Note that rolling the option is not reasonable. There is no compelling reason to continue to hold this particular stock in the portfolio. The writer will allow the stock to be assigned and then just move on.
_________________________________FOLLOW UP_____________________________

			SysCW Position Tracker

Historical Data			Closed Position
				Stock	Cash	Total Cash	Annualized
Date	Strategy	Status	Position	Investment	Generated	Generated	Return
16-Aug-06	Initial Stock Purchase		Buy 100 CYBX @ 15.2879	($1,538.78)
			Cyberonics, Inc.
16-Aug-06	Initial Call Option		Sell Jan $15 call @ 2.75	Exercised1/19/07	$264.25
19-Jan-07	Stock Assigned		Sell 100 CYBX @ 15	$1,480.96	($57.82)
19-Jan-07			Net Cash Gain			$206.43	Annualized
156	Days		Net Percentage Gain			13.42%	31.39%

CYBX closed at $19.58 on expiration Friday. The stock was assigned and this position is back-to-cash with the predetermined profit and rate of return.

PLEASE NOTE THAT THIS EXAMPLE IS NOT TO BE CONSIDERED AS A RECOMMENDATION TO INVEST IN CYBX 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: 02/05/07