Sold April 12.5 Calls of Taiwan Semiconductor Manufacturing Company Limited (TSM)

We sold TSM April 2008 12.5 Calls at $0.35 per share. As with the previous call option we wrote, these are also covered, as we own the underlying stock in our portfolio. We are betting on the stock’s stagnancy for the coming seven months.

Here is a quick analysis of how this could play out:

• The option expires worthless: This is a possibility only if the option is not exercised between now and next April and the stock closes below $12.5 on the date of expiration.
• The option is exercised: We will realize a total profit of almost 50% (we purchased TSM stock 7/27/2006 at $8.71/share).

Either scenario lowers our cost basis by $0.35 per share although taxes would take away its due.

The list of stocks/options sold during the year and the gain/losses are listed below:

Stock	Buy Date	Buy Price	Sell Date	Sell Price	% Gain (Loss)	% Portfolio Return*
Harrah’s (HET)	10/2/2006	75.61	8/7/2007	83.68	10.66	0.62
St. Joe (JOE)	8/7/2007	39.4	8/8/2007	41.8	6.23	0.47
Google (GOOG)	3/14/2007	441	8/10/2007	515.99	16.86	1.14
LOCM (LOCM)	8/10/2007	5.47	9/17/2007	6.094	11.31	0.71
PetroChina (PTR)	9/12/2006	106	10/1/2007	188.5	78.14	2.85
PetroChina (PTR)	9/12/2006	106	10/3/2007	178.05	68.39	2.22
ValueClick (VCLK)	9/12/2007	19.4	10/12/2007	28.28	45.79	3.4
Suntech March 45 Call	-	-	10/15/2007	5.00	-	-
TSM April 12.5 Call	-	-	10/18/2007	0.35	-	-
Realized Gain/(Loss) YTD	-	-	-	-	-	11.41

• % Gain/Loss Relative to Portfolio Value at Beginning of Year + Deposits
• The table assumes realization of profits associated with selling options only after the option is exercised or expiry.