Systematic Covered Writing

... more than just covered calls!

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Assignment Examples

THE STOCK: Accredited Home Lenders Holding Co,.

POSITION ESTABLISHED DATE: April 23, 2007

ASSIGNMENT DATE: September 21, 2007

COMMENTS: On August 2, 2007, this stock traded as low as $3.90 a share.  If the writer was concerned with 'value', something may have been done, but as you should know by now . . . it is a rare occurrence for the writer to 'bail' on a position.  Concluded positions like this may help one understand why.

      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
23-Apr-07 Initial Stock Purchase Buy 200 LEND @ 10.9999 (2,026.98)      
      Accredited Home Lenders Holding Co        
23-Apr-07 Initial LEAP Option  Sell two Sep $10 calls @ 2.90   $570.49    
21-Sep-07  Stock Assigned  Sell 200 LEND @ $10 1,982.96 ($44.02)    
21-Sep-07     Net Cash Gain     $526.47 Annualized
151 Days   Net Percentage Gained     25.97% 62.78%

The position ended with back-to-cash annualized profit that was determined in April of 2007. The annualized gain is not a surprise, as we knew would it would be when the position was established.  The only thing that had to happen was for the stock to be trading above $10 on expiration Friday, which is was.

Systematic Covered Writing was never meant to be a 'get rich quick', short-term investment process. Those that understand and accept the conservative nature of SysCW will be better equipped for dealing with daily triple digit market swings as we all experienced on numerous occasions this past month.

PLEASE NOTE THAT THIS EXAMPLE IS NOT TO BE CONSIDERED AS A RECOMMENDATION TO INVEST IN LEND 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 © 2007. All rights reserved.
Revised: 09/30/07