Systematic Covered Writing

... more than just covered calls!

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Option Assigned Examples

THE STOCK: Elan Depository Receipt

POSITION ESTABLISHED DATE: February 6, 2006

ASSIGNMENT DATE: January 18, 2008

THE RESULTS: The complete history of all Closed Positions is maintained indefinitely in the Position Tracker for each portfolio.  The Tracker data becomes the SysCW evidence manual over time. The results are the results, which means subscribers can gleam the historical merits of the process as the results include all positions . . .  not just the 'pretty' ones.  

COMMENTS: A longer term ELN position.  Notice that the writer only used two options from February 2006 to January 2009. The return is above average, which will help make up for positions that do not do as well.  Remember . . . though we appreciate trees like this, we are also aware that they are just part of the forest!

      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 Gain
6-Feb-06 Initial Stock Purchase Buy 100 ELN @ 14.84 ($1,491.00)      
      Elan Depository Receipt        
6-Feb-06 Initial Call Option Sell Jul $15 call @ 3.30 Expired 7/15/06 $321.73    
16-Aug-06 Continued Trade Sell 08 Jan $15 LEAP @ 5.00 Exercised 1/15/08 $491.73    
18-Jan-08 Stock Assignment Sell 10 ELN @ $15 $1,482.97 ($8.03)   SMC
18-Jan-08     Net Cash Gain     $805.43 Annualized
711 Days   Net Percentage Gain     54.02% 27.73%

Some positions will do better, some will do worse. We always want to make sure we look at the overall cash generation of a portfolio, and not any individual position.  Yes, this is a good one.  We'll take it.

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

SYSTEMATIC COVERED WRITING
Copyright © 2005. All rights reserved.
Revised: 01/25/08