Our November 7.5 covered calls on Taiwan Semi (TSMKU) and the November 35 covered calls on Plum Creek Timber (PCLKG) expired worthless. The options netted a gain of about 10% each on our investments in Taiwan Semi and Plum Creek Timber shares. We are showing a realized gain of just fewer than 5% for the year on our transactions. We are about 18% on margin and will try to continue to liquidate some of our defensive holdings to avoid margin exposure completely by the end of the year. This should also allow us to realize capital losses for next year tax purposes. TD Ameritrade currently charges 9% on our margin amount, which makes being on margin especially unattractive.
Early next year, we plan to liquidate some long-term ESPP holdings were we adopted the long-term capital gains realization strategy discussed previously. That should allow us to infuse between 5-10% more cash to this portfolio.
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* |
| LDK Solar (LDK) | 11/21/2007 | 30.30 | 01/08/2008 | 40.83 | 34.75 | 2.64 |
| Fannie Mae (FNM) | 02/15/2008 | 30.70 | 03/10/2008 | 19.82 | (35.44) | (2.18) |
| Navteq Inc.(NVT) | 03/11/2008 | 73.32 | 03/12/2008 | 72.15 | (1.62) | (0.06) |
| Suntech March 45 Call (STPCI) | 10/15/2007 | NA | 03/22/2008 | NA | NA | 0.50 |
| LDK Solar March 40 Call (LDKCH) | 02/13/2008 | NA | 03/22/2008 | NA | NA | 0.44 |
| Taiwan Semi April 12.5 Call (TSMDV) | 10/18/2007 | NA | 04/20/2008 | NA | NA | 0.1664 |
| Cypress Semi April 27 Call (CYDB) | 04/04/2008 | NA | 04/20/2008 | NA | NA | 0.2137 |
| Cypress Semi (CY) | 04/02/2008 | 24.89 | 04/20/2008 | 26.95 | 8.26 | 0.4113 |
| EMC Corporation May 16 (EMCEQ) Call | 04/23/2008 | NA | 05/17/2008 | NA | NA | 0.1639 |
| EMC Corporation (EMC) | 04/08/2008 | 15.00 | 05/17/2008 | 15.97 | 6.48 | 0.2915 |
| Suntech June 45 Call (STPFI) | 04/01/2008 | NA | 06/05/2008 | NA | NA | 0.3538 |
| Taiwan Semi Oct 12.5 Call (TSMJV) | 04/21/2008 | NA | 10/18/2008 | NA | NA | 0.2061 |
| Plum Creek Timber Nov 50 Call (PCLKJ) | 06/03/2008 | NA | 10/21/2008 | NA | NA | 0.2028 |
| Suntech Power Dec 50 Call (STPLJ) | 06/06/2008 | NA | 10/21/2008 | NA | NA | 0.4656 |
| Taiwan Semi Nov 7.5 Call (TSMKU) | 10/31/2008 | NA | 11/22/2008 | NA | NA | 0.4682 |
| Plum Creek Timber Nov 35 Call (PCLKG) | 10/28/2008 | NA | 11/22/2008 | NA | NA | 0.3931 |
| Realized Gain/(Loss) YTD | - | - | - | - | - | 4.5311 |
- % 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.
- Dividend returns are not included in the spreadsheet – they are expected to be about 4%.
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