Systematic Covered Writing

... more than just covered calls!

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Option Assigned Examples

THE STOCK: SYNA - Synaptics, Incorporated

POSITION ESTABLISHED DATE: March 2, 2005

ASSIGNMENT DATE: March 16, 2007

COMMENTS: This interesting issue with this position lies in the fact that the writer was able to use the same strike price throughout the two year holding period. As you can see, the SysCW Recover After expiration was used once and the SysCW Buy Back & Roll Out strategy was used twice.

      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
3-Mar-05 Initial Stock Purchase Buy 200 SYNA @ 22.699 ($4,539.80)      
    Synaptics, Incorporated        
3-Mar-05 Initial Call Option Sell two Sep $22.50 calls @ 4 Expired 9/17/05 $790.47    
19-Sep-05 Continued Trade  Sell two Mar $22.50 calls @ 1.05 Rolled 3/09/06 $200.49    
9-Mar-06 Buy Back & Roll Out Buy two Mar $22.50 calls @ 2.95   ($599.50)    
9-Mar-06 Continued Trade  Sell two Sep $22.50 calls @ 5.30 Rolled 8/31/06 $1,050.46 Email Example  
31-Aug-06 Buy Back & Roll Out Buy two Sep $22.50 calls @ 2.90   ($589.50)    
31-Aug-06 Continued Trade  Sell two Mar $22.50 calls @ 5 Exercised 3/16/07  $990.46    
16-Mar-07 Stock Assigned Sell 200 SYNA @ 22.50 $4,482.93 ($56.87)    Mo
16-Mar-07     Net Cash Gain     $1,786.01 Annualized
743 Days         39.34% 19.33%

Each position is but one piece of the investment puzzle, or as the writer has mentioned, but one tree in the forest. Each portfolio will contain positions that produce more than the 15% yearly cash generation target, as well as positions that fall short of that goal.  Needless to say, this one did just fine.

PLEASE NOTE THAT THIS EXAMPLE IS NOT TO BE CONSIDERED AS A RECOMMENDATION TO INVEST IN SYNA 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: 06/09/07