Wrote Feb 7.5 Covered Calls on Taiwan Semi Shares

We wrote Feb 7.5 covered calls against our Tawan Semi shares at 0.90 today. The calls are in the money and will get exercised unless the shares are below 7.5 on the expiration day (February 21st). Our plan is to liquidate some of our defensive stocks and position the portfolio for an eventual rebound. Writing near-the-money near-term covered calls helps us realize a slight premium. Also, the strategy provides flexibility – we could decide to close or rollover the call.

And, 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	15.38	3.76	(7.82)	0.16
Philip Morris International (PM)	1/4/2005	32.19	44.47	7.37	38.14	0.23
Kraft Foods (KFT)	Various	24.03	27.62	4.51	14.92	0.11
Pfizer (PFE)	Various	24.37	18.16	7.41	(25.47)	0.33
ICICI Bank (IBN)	5/18/2006 and 08/01/2008	25.28	21.00	8.57	(16.92)	0.17
Taiwan Semi (TSM) – Call Value	7/27/2006	8.71	7.50	6.12	(13.77)	0.24
Advantage Energy Fund (AAV)	11/2/2006	11.22	4.85	1.98	(56.79)	0.22
Central Europe & Russia Fund (CEE)	Various	39.23	18.14	5.18	(53.75)	1.85
Patni Computers (PTI)	8/10/2007	20.85	6.07	2.48	(70.91)	0.03
Itron Inc. (ITRI)	11/07/2007	85.01	65.73	5.36	(22.77)	None
Anthracite (AHR)	11/09/2007	7.97	2.41	0.98	(69.76)	0.35
ClickSoftware (CKSW)	11/09/2007	4.61	2.00	1.63	(56.62)	None
Harvest Energy (HTE)	11/28/2007	21.01	9.53	3.11	(54.65)	0.45
iRobot (IRBT)	12/18/2007	18.65	9.59	3.13	(48.14)	None
LDK Solar (LDK)	01/22/2008	30.49	14.84	3.63	(51.33)	None
Aegon N.V. (AEG)	04/28/2008	15.99	6.83	1.67	(57.28)	0.24
LM Ericsson (ERIC) (AEG)	05/05/2008	11.83	7.99	5.21	(32.44)	0.20
TD Ameritrade (AMTD)	05/21/2008	17.68	13.84	4.52	(21.74)	None
Trina Solar (TSL)	06/06/2008 and 07/31/2008	45.61	10.09	2.06	(76.04)	None
Costco (COST)	08/01/2008	62.28	52.29	4.27	(16.04)	0.03
Frontline Limited (FRO)	10/06/2008	36.95	31.62	3.87	(14.41)	0.41
DryShips Incorporated (DRYS)	10/09/2008	11.66	13.85	6.78	(18.80)	0.41
Companhia Siderurgica Nacional (SID)	10/10/2008	11.47	15.14	4.94	37.28	0.02
Cash				1.59
Total Portfolio					(31.36)	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.