Systematic Covered Writing

... more than just covered calls!

(The SysCW Home Page)

Option Assigned Examples

THE STOCK: GOL - GOL Linhas Aereas Inteligentes
POSITION ESTABLISHED DATE: July 10, 2006

ASSIGNMENT DATE: January 19, 2007

COMMENTS: The interesting thing about this example is the stock lost about 10% during the holding period while the position is back-to-cash with an annualized gain of over 29%.

			Systematic Covered Writing
			. . . 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
10-Jul-06	Initial Stock Purchase		Buy 100 GOL @ 33.07	($3,315.00)
			GOL Linhas Aereas Inteligentes SA (ADR)
10-Jul-06	Initial Call Option		Sell Jan $30 call @ 7.20		$710.72	Email 7/10
27-Nov-06			Dividend Received w/tax adjustment		$5.89
27-Nov-06			Dividend Received w/tax adjustment		$7.70
19-Jan-07	Stock Assigned		Sell 100 GOL @ 30	$2,982.96	($332.04)		LinkList
19-Jan-07			Net Cash Gain			$392.27	Annualized
193	Days		Net Percentage Gain			11.83%	22.38%

On expiration Friday, GOL closed at $30.52. The stock was up sixty cents on the day, which made the difference between being assigned and just expiring. This is a perfect example of why the downside protection is important. Long holders of the stock during this time frame are down about 10%, where as the covered call position is up over 11%.

PLEASE NOTE THAT THIS EXAMPLE IS NOT TO BE CONSIDERED AS A RECOMMENDATION TO INVEST IN GOL 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