Systematic Covered Writing

... more than just covered calls!

(The SysCW Home Page)

Option Assigned Example

THE STOCK: Micron Technology, Inc.
POSITION ESTABLISHED DATE: October 10, 2005
ASSIGNMENT DATE: January 19, 2007

ASSIGNMENT: Note that more than one portfolio was invested in LEXR. The rational behind presenting all of the positions is to illustrate the repeatability of the SysCW process. This position happens to be from the online 100k Portfolio.

			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-Oct-05	Initial Stock Purchase		Buy 200 LEXR @ 7.52	($1,511.00)
			Now 119 MU Shares
10-Oct-05	Initial Call Option		Sell two '07 Jan $7.50 LEAPS @ 2.30		$450.48
19-Jan-07	Stock Assigned		Sell 119 MU (200 LEXR) @ 7.50	$1,492.96	($18.04)
19-Jan-07			Net Cash Gain			$432.44	Annualized
466	Days		Net Percentage Gain			28.62%	22.42%

CONCLUSION: When a position is closed and back-to-cash, the net profit and or loss of the position can be precisely determined. This is because both the long stock position and the short option position have been liquidated. Until this happens, one really does not know what will be made, or what could be lost.

This portion of the Web site is dedicated to providing the closing activity for every position established, and provided to subscribers. To that end, you will find that the number of examples increase monthly. This example illustrates that inexpensive stocks occasionally do work out as covered positions. If one never swings the bat, one will never know.

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