Opening Positions

Here are the opening positions for this demonstration, adjusted for commissions:

Positions:

Buy Date	Symbol	Price Paid	Call sell date	Month	Strike	Premium	Notes
10/16/2007	WFMI	49.45	10/29/2007	Jan	52.5	2.34	Div. expected in Jan.
10/25/2007	NUAN	21.65	10/25/2007	Apr	25	1.99
10/26/2007	CYBS	16.41	10/26/2007	Jan	17.5	.89
10/29/2007	EGLE	34.54	10/29/2007	Mar	35	3.39	Div: .50 on 11/28/07
10/30/2007	NVDA	34.09	10/30/2007	Nov	35	1.59
10/30/2007	ACAS	41.61	10/31/2007	Feb	45	1.79	Div: 1.00 on 1/16/08

The stock purchases cost $ 19,775, and the sold calls brought in $ 1,119 in premiums, leaving a cash balance of $1,424 (vs $225 for the notional Buy Only investor).

Just a quick note about my stock selection here. As I noted earlier, these are actual trades that I am tracking as a separate part of my personal equities portfolio. I took the positions for this demonstration of the BHW vs BO strategies because they are companies that I have already been investing in and selling calls against for months or years. I’m a lazy investor who doesn’t spend all my waking hours researching new ideas, nor do I like to fuss with or fret over my core holdings too much — I often go weeks or months without logging into my brokerage account. Which goes to show that the average joe-investor could deploy the BHW strategy without too much extra effort than what they are already doing.