Systematic Covered Writing

... more than just covered calls!

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Option Assigned Examples

THE STOCK: Isis Pharmaceuticals Inc.

POSITION ESTABLISHED DATE: July 30, 2007

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: Systematic Covered Writing suggests that positions be established with pre-determined back-to-cash gains. In that light, it is no surprise this position ended with a 32.03% annualized gain.

      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
30-Jul-07 Initial Stock Purchase Buy 100 ISIS @ 10.1799 ($1,024.99)      
      Isis Pharmaceuticals Inc        
30-Jul-07 Initial Call Option Sell Jan 10 call @ 2.05 Assigned 1/18/08 $196.74    
18-Jan-08 Stock Assigned Sell 100 ISIS @ 10 $982.98 ($42.01)    
18-Jan-08     Net Cash Gain     $154.73 Annualized
172 Days   Net Percentage Gain     15.10% 32.03%

Six month positions like this are very common.  They will generally provide better than average downside protection (19.19% in this case), and respectful gains if the option is assigned.  These are easy . . . and many services concentrate on only showing successful positions like this.  In reality, we all know that we will have winners, but we will also have positions were we are not finished yet.

PLEASE NOTE THAT THIS EXAMPLE IS NOT TO BE CONSIDERED AS A RECOMMENDATION TO INVEST IN ISIS 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: 02/23/08