Wrote Apr 7.5 Covered Calls on LM Ericsson Telephone Company (ERIC)

We wrote April 7.5 covered calls against our Ericsson shares at 0.95. Ericsson (ERIC) reported earnings that were helped by the weakening of the Swedish Kroner. Also, they announced more cost-cutting initiatives: 5000 layoffs and moving facilities to less expensive countries. Those two factors combined to give almost a 15% spike in the share price yesterday. We wrote the calls against our entire holding following our strategy of writing near-term near-the-money covered calls against our defensive positions to give our portfolio an aggressive tilt that should help in an eventual market rebound. We plan to hold on to these calls till expiry or until they get called away.

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	16.97	4.45	1.71	0.16
Philip Morris International (PM)	1/4/2005	32.19	41.41	7.49	28.63	0.23
Kraft Foods (KFT)	Various	24.03	28.33	4.95	17.87	0.11
Pfizer (PFE)	Various	24.37	17.48	7.64	(28.27)	0.33
ICICI Bank (IBN)	5/18/2006 and 08/01/2008	25.28	15.59	6.82	(38.32)	0.17
Taiwan Semi (TSM) – Call Value	7/27/2006	8.71	7.21	6.31	(17.06)	0.24
Advantage Energy Fund (AAV)	11/2/2006	11.22	4.39	1.92	(60.89)	0.22
Central Europe & Russia Fund (CEE)	Various	39.23	15.40	4.71	(60.74)	1.85
Patni Computers (PTI)	8/10/2007	20.85	4.80	2.10	(77)	0.03
Itron Inc. (ITRI)	11/07/2007	85.01	58.99	5.16	(30.69)	None
Anthracite (AHR)	11/09/2007	7.97	1.79	0.78	(77.54)	0.35
ClickSoftware (CKSW)	11/09/2007	4.61	1.99	1.74	(56.85)	None
Harvest Energy (HTE)	11/28/2007	21.01	8.78	3.07	(58.22)	0.45
iRobot (IRBT)	12/18/2007	18.65	7.84	2.74	(57.60)	None
LDK Solar (LDK)	01/22/2008	30.49	11.83	3.10	(61.20)	None
Aegon N.V. (AEG)	04/28/2008	15.99	5.20	1.36	(67.47)	0.24
LM Ericsson (ERIC) (AEG)	05/05/2008	11.83	7.71	5.39	(34.81)	0.20
TD Ameritrade (AMTD)	05/21/2008	17.68	12.02	4.20	(32.03)	None
Trina Solar (TSL)	06/06/2008 and 07/31/2008	45.61	7.98	1.74	(81.05)	None
Costco (COST)	08/01/2008	62.28	47.90	4.19	(23.09)	0.03
Frontline Limited (FRO)	10/06/2008	36.95	30.12	3.95	(18.46)	0.41
DryShips Incorporated (DRYS)		11.66	14.50	7.61	24.37	0.41
Companhia Siderurgica Nacional (SID)	10/10/2008	11.47	15.55	5.44	41	0.02
Cash				3.37
Total Portfolio					(36.64)	5.46

• For Altria and Philip Morris International, assumed spin-off ratio of 30.83:69.17. Altria is yet to supply the cost-basis info
• The yield column is current as of 11/21/2008.
• For Taiwan Semi (TSM), we wrote Feb 7.5 covered calls on them on 01/05/2009.
• For DryShips (DRYS), we wrote Feb 15 covered calls on them on 01/16/2009.
• For LM Ericsson Telephone Company (ERIC), we wrote Apr 7.5 covered calls on them on 01/21/2009.