Systematic Covered Writing

... more than just covered calls!

Option Assigned Examples

THE STOCK: Seabridge Gold Inc.

POSITION ESTABLISHED DATE: September 4, 2007

ASSIGNMENT DATE: February 15, 2008

THE RESULTS: The complete history of ll 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: It is great to have positions work as planned.  FYI ... on February 15, 2008, SA closed at $26.10, which happens to be forty-four cents higher than when it was purchased in September!  The Position Tracker below indicates that the net back-to-cash gain from this position is $4.62 per share in just 164 days. 

Please . . . allowing assignment is the best way to increase profits with any given stock, and when we are talking about Initial Positions.  The writer likes this stock, and it is entirely possible that a similar position will be established on the Monday after expiration.

			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
4-Sep-07	Initial Stock Purchase		Buy 100 SA @ 25.66	($2,573.00)
			Seabridge Gold Inc
4-Sep-07	Initial Call Option		Sell Feb $25 call @ 5.30	Assigned 2/15/08	$521.74
15-Feb-08	Stock Assigned		Sell 100 SA @ $25	$2,482.94	($90.06)		MG
15-Feb-08			Net Cash Gain			$431.68	Annualized
164	Days		Net Percentage Gain			16.78%	37.34%

February is generally one of the slower months in terms of assignment activity as so many positions end in January.  In fact . . . knowing this in September led the writer to select the February expiration for this position.  Obviously, the 'math' also worked. Please note that this was an excellent SysCW Initial Position. It was a 'good' one and they are always the easiest to deal with . . . we basically do nothing but count the money! Anyone can deal with winning positions . . . all that is required is for the position to be set up correctly in the first place, which is exactly why we use the Math Exercise.

Under the guise of taking the good with the bad . . . we will humbly accept this position as having been the 'right' stock.

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PLEASE NOTE THAT THIS EXAMPLE IS NOT TO BE CONSIDERED AS A RECOMMENDATION TO INVEST IN SA 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: 02/17/08