Today, as the market rallied, we sold covered calls on our Plum Creek Timber (TSM) shares – Dec 35 at $3.33 (PCLLG). We previously wrote November 35 covered calls that expired worthless last Saturday. The market rally resulted in the shares going well above 35 and enabled us to write the option with a good premium. If the shares get exercised, it would help our strategy to reduce our margin exposure. If it doesn’t, we plan to continue writing near-term in-or-near-the-money covered calls.
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 | 15.43 | 4.69 | (7.52) | 0.17 |
| Philip Morris International (PM) | 1/4/2005 | 32.19 | 41.83 | 7.54 | 29.94 | 0.24 |
| Kraft Foods (KFT) | Various | 24.03 | 26.96 | 5.46 | 12.17 | 0.12 |
| Plum Creek Timber (PCL) – Call Value | 5/12/2005 | 35.5 | 35 | 10.63 | (1.42) | 0.27 |
| Pfizer (PFE) | Various | 24.37 | 16.04 | 8.12 | (34.17) | 0.31 |
| ICICI Bank (IBN) | 5/18/2006 and 08/01/2008 | 25.28 | 13.94 | 7.06 | (44.85) | 0.14 |
| Taiwan Semi (TSM) | 7/27/2006 | 8.71 | 6.76 | 6.85 | (22.28) | 0.21 |
| Advantage Energy Fund (AAV) | 11/2/2006 | 11.22 | 5.11 | 3.36 | (54.47) | 0.38 |
| SunTech Power (STP) | 3/14/2007 | 36.73 | 6.69 | 1.35 | (81.78) | None |
| Central Europe & Russia Fund (CEE) | Various | 39.23 | 15.67 | 5.55 | (60.05) | 1.83 |
| Patni Computers (PTI) | 8/10/2007 | 20.85 | 5.46 | 2.76 | (73.83) | 0.03 |
| Itron Inc. (ITRI) | 11/07/2007 | 85.01 | 40.84 | 4.14 | (52.01) | None |
| Anthracite (AHR) | 11/09/2007 | 7.97 | 2.39 | 2.42 | (70.01) | 0.66 |
| ClickSoftware (CKSW) | 11/09/2007 | 4.61 | 2.25 | 2.28 | (51.19) | None |
| Harvest Energy (HTE) | 11/28/2007 | 21.01 | 10.56 | 4.28 | (49.75) | 0.55 |
| iRobot (IRBT) | 12/18/2007 | 18.65 | 9.24 | 3.74 | (50.03) | None |
| MCG Capital (MCGC) | Various | 10.86 | 0.73 | 0.59 | (93.28) | None |
| LDK Solar (LDK) | 01/22/2008 | 30.49 | 12.17 | 3.70 | (60.09) | None |
| Aegon N.V. (AEG) | 04/28/2008 | 15.99 | 4.15 | 2.52 | (74.04) | 0.31 |
| LM Ericsson (ERIC) (AEG) | 05/05/2008 | 11.83 | 6.63 | 5.37 | (43.94) | 0.18 |
| TD Ameritrade (AMTD) | 05/21/2008 | 17.68 | 12.03 | 4.87 | (31.98) | None |
| Trina Solar (TSL) | 06/06/2008 and 07/31/2008 | 45.61 | 7.96 | 2.02 | (81.10) | None |
| Costco (COST) | 08/01/2008 | 62.28 | 49.45 | 5.01 | (20.60) | 0.03 |
| Frontline Limited (FRO) | 10/06/2008 | 36.95 | 29.01 | 4.41 | (21.48) | 0.41 |
| DryShips Incorporated (DRYS) | 10/09/2008 | 11.66 | 4.50 | 2.73 | (61.40) | 0.19 |
| Companhia Siderurgica Nacional (SID) | 10/10/2008 | 11.47 | 9.95 | 3.02 | (13.28) | 0.01 |
| Cash | (15.40) | |||||
| Total Portfolio | (50.02) | 6.02 |
- 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 December 35 on 11/24/2008 at $3.33.
- The yield column is current as of 11/21/2008.
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