Wrote Nov 7.5 Covered Calls on Taiwan Semiconductor Shares (TSM)

As noted in our previous post, we are aggressively selling in-the-money or near-the-money near-term covered calls on some of our defensive holdings. Today, as the market rallied, we sold covered calls on our Taiwan Semiconductor (TSM) shares – Nov 7.5 at $1 (TSMKU). The expectation is that one or more of these will get called away thereby allowing us to raise cash to cover some or all of our margin position. If they do not get called away, we will continue to write the same type of covered calls after November 15. The idea is to tilt the portfolio more towards growth-oriented investments as the market bottoms.

Below is our updated portfolio:

Stock	Buy Date	Buy Price	Current Price	Current % Of Portfolio	Unrealized % Return	Yield as % of BOY Portfolio Value Plus Deposits
Altria (MO)	Various	16.69	19.19	4.78	15.01	0.14
Philip Morris International (PM)	1/4/2005	32.19	43.47	6.62	35.03	0.15
Kraft Foods (KFT)	Various	24.03	29.18	4.84	21.41	0.10
Plum Creek Timber (PCL) – Call Value	5/12/2005	35.5	35	8.72	(1.42)	0.20
Pfizer (PFE)	Various	24.37	17.71	7.35	(27.32)	0.27
ICICI Bank (IBN)	5/18/2006 and 08/01/2008	28.30	17.32	7.19	(31.48)	0.05
Taiwan Semi (TSM)	7/27/2006	8.71	7.50	6.23	(13.77)	0.12
Advantage Energy Fund (AAV)	11/2/2006	11.22	6.15	3.32	(45.17)	0.23
SunTech Power (STP)	3/14/2007	36.73	17.50	2.91	(52.35)	None
Central Europe & Russia Fund (CEE)	Various	51.03	19	5.52	(51.56)	0.65
Patni Computers (PTI)	8/10/2007	20.85	5.80	2.41	(72.70)	0.16
Itron Inc. (ITRI)	11/07/2007	85.01	48.48	4.02	(43.04)	None
Anthracite (AHR)	11/09/2007	7.97	4.34	3.60	(45.54)	0.32
ClickSoftware (CKSW)	11/09/2007	4.61	2.90	2.41	(37.09)	None
Harvest Energy (HTE)	11/28/2007	21.01	9.80	3.25	(53.37)	0.30
iRobot (IRBT)	12/18/2007	18.65	10.32	3.43	(44.19)	None
MCG Capital (MCGC)	Various	10.86	0.82	0.54	(92.45)	None
LDK Solar (LDK)	01/22/2008	30.49	18.19	4.53	(40.35)	None
Aegon N.V. (AEG)	04/28/2008	15.99	4.11	2.05	(74.29)	0.07
LM Ericsson (ERIC) (AEG)	05/05/2008	11.83	7.07	4.70	(40.22)	0.10
TD Ameritrade (AMTD)	05/21/2008	17.68	13.29	4.41	(24.85)	None
Trina Solar (TSL)	06/06/2008 and 07/31/2008	45.61	10.49	2.18	(75.09)	None
Costco (COST)	08/01/2008	62.28	57.07	4.73	(8.46)	0.03
Frontline Limited (FRO)	10/06/2008	36.95	31.80	3.96	(13.93)	0.69
DryShips Incorporated (DRYS)	10/09/2008	19.30	19.25	4.79	(0.27)	0.12
Companhia Siderurgica Nacional (SID)	10/10/2008	11.47	13.60	3.39	18.54	0.08
Cash				(12.48)
Total Portfolio					(38.72)	3.58

• For Altria and Philip Morris International, assumed spin-off ratio of 30.83:69.17. Altria is yet to supply the cost-basis info
• For Plum Creek Timber (PCL), we wrote covered calls for 2008 November 35 on 10/28/2008 at $2.75.
• For Taiwan Semiconductors (TSM), we wrote covered calls for 2008 November 7.5 on 10/31/2008 at $1.0.