Sold March 40 Calls of LDK Solar (LDK)

We sold LDK March 2008 40 Calls at $3 per share. As with the previous call options we wrote last year, these are also covered, as we own the underlying stock in our portfolio. We are betting on the stock’s stagnancy for the next 36 days.

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 March 22 and the stock closes below $40 on the date of expiration.
• The option is exercised: We will realize a total profit of roughly 40% (we purchased LDK solar 1/22/2008 at $30.49/share).

Either scenario lowers our cost basis by $3 per share although taxes would take away its due.

Below are our updated stock positions:

Stock	Buy Date	Buy Price	Current Price	Current % Of Portfolio	Unrealized % Return	Current Yield
Philip Morris (MO)	1/4/2005	46.54	72.85	9.59	56.53	3.90
Kraft Foods (KFT)	1/4/2005	21.11	29.56	2.68	40.00	3.30
Plum Creek Timber (PCL)	5/12/2005	35.5	40.30	7.95	13.51	3.60
Pfizer (PFE)	2/6/2006	25.15	22.74	5.98	(9.60)	5.60
ICICI Bank (IBN)	5/18/2006	27.57	57.70	11.39	109.26	0.80
Taiwan Semi (TSM)	7/27/2006	8.71	9.75	6.41	11.93	3.60
Advantage Energy Fund (AAV)	11/2/2006	11.22	10.61	4.54	(5.47)	16.80
SunTech Power (STP)	3/14/2007	36.73	45	6.32	22.53	None
Central Europe & Russia Fund (CEE)	6/28/2007	51.5	49.90	6.57	(2.22)	17.90
Patni Computers (PTI)	8/10/2007	20.85	13.23	4.35	(36.60)	0.80
Itron Inc. (ITRI)	11/07/2007	85.01	80.30	5.28	(5.65)	None
Anthracite (AHR)	11/09/2007	7.97	6.90	4.54	(13.42)	15.60
ClickSoftware (CKSW)	11/09/2007	4.61	3.13	2.06	(32.10)	None
Harvest Energy (HTE)	11/28/2007	21.01	24.98	6.57	18.87	16.30
iRobot (IRBT)	12/18/2007	18.65	19.44	4.16	4.23	None
MCG Capital (MCGC)	12/21/2007	11.86	12.55	4.95	5.85	14.00
LDK Solar (LDK)	01/22/2008	30.49	35.67	7.04	16.98	None
Cash				8.09
Total Portfolio					10.93

• For SunTech Power (STP), we wrote a covered call option for 2008 March 45 on 10/15/2007 at $5 and so the price is listed as $45 as we won’t participate in the appreciation beyond that plus the premium received.
• For Taiwan Semiconductor (TSM), we wrote a covered call option for 2008 April 12.5 at $0.35 on 10/18/2007.
• For LDK Solar (LDK), we wrote a covered call option for 2008 March 40 at $3 on 2/13/2008.