Systematic Covered Writing

... more than just covered calls!

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Assignment Examples

THE STOCK: PDLI - PDL BioPharma Inc.

POSITION ESTABLISHED DATE: December 19, 2005

ASSIGNMENT DATE: August 17, 2007

COMMENTS: This position was established with a typical SysCW long-term call option. Some 241 days later, that option was exercised and the stock assigned.  The data below is a historical record of these events.

      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
19-Dec-06 Initial Stock Purchase Buy 100 PDLI @ 20.7486 ($2,081.86)      
      PDL BioPharma Inc        
19-Dec-06 Initial Call Option Sell Aug $20 call @ 3.20   $311.74 Email 12/19  
17-Aug-07 Stock Assigned Sell 100 PDLI @ 20 $1,982.96 ($98.90)    
17-Aug-07     Net Cash Gain     $212.84  Annualized 
241 Days   Net Percentage Gained     10.22% 15.48%

The position ended with back-to-cash annualized profit that was determined in December of 2005. It's not the best position, but it is also only one tree out of the forest!

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 PDLI 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: 08/22/07