Options Expiry – Our Taiwan Semi (TSM) Covered Calls Expired Worthless

Taiwan Semi (TSM) closed Friday at $7.46. The covered calls we wrote 01/09/2009 on our holdings on Taiwan Semi expired worthless. We will continue to look into writing similar calls on our shares of Taiwan Semi as we attempt to reposition our portfolio with a growth tilt as the market bottoms.

We also started writing covered calls against long-term holdings in our employee stock purchase plan shares. There are several issues with adopting such a strategy but the net effect can be beneficial – we will look into the details in a separate post.

Our cash position now stands at 9.1% of our total portfolio value. Valuations have come down again following the correction and we will look into deploying the cash.

Below is our updated portfolio:
















































































StockBuy DateBuy PriceCurrent PriceCurrent % Of PortfolioUnrealized % ReturnYield as % of BOY Portfolio Value Plus Deposits
Altria (MO) Various16.6915.464.79(7.34)0.16
Philip Morris International (PM)1/4/200532.1935.638.0910.680.23
Kraft Foods (KFT)Various24.0323.514.86(2.18)0.11
Pfizer (PFE)Various24.3713.717.08(43.74)0.33
ICICI Bank (IBN)5/18/2006 and 08/01/200825.2813.787.11(45.48)0.17
Taiwan Semi (TSM) – Call Value7/27/20068.717.577.81(13.00)0.24
Advantage Energy Fund (AAV)11/2/200611.222.361.22(78.97)0.22
Central Europe & Russia Fund (CEE)Various39.2312.424.49(68.31)1.85
Patni Computers (PTI)8/10/200720.854.922.54(76.42)0.03
Itron Inc. (ITRI)11/07/200785.0146.844.84(44.96)None
Anthracite (AHR)11/09/20077.971.150.59(85.57)0.35
ClickSoftware (CKSW)11/09/20074.612.852.94(38.18)None
Harvest Energy (HTE)11/28/200721.016.352.62(69.78)0.45
iRobot (IRBT)12/18/200718.657.763.21(58.03)None
LDK Solar (LDK)01/22/200830.496.121.90(79.93)None
Aegon N.V. (AEG)04/28/200815.994.291.33(73.16)0.24
LM Ericsson (ERIC) – Call Value
05/05/200811.83 7.506.20(36.59)0.20
TD Ameritrade (AMTD)05/21/200817.68 12.815.29(27.56)None
Trina Solar (TSL)06/06/08, 07/31/08, 01/23/09
24.78 7.493.87(69.85)None
Costco (COST)08/01/200862.28 42.764.42(31.34)0.03
Frontline Limited (FRO)10/06/200836.95 24.103.73(34.75)0.41
DryShips Limited (DRYS)02/09/20086.96 3.792.74(45.58)0
Cash











9.07







Total Portfolio















(46.43)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 LM Ericsson Telephone Company (ERIC), we wrote Apr 7.5 covered calls on them on 01/21/2009.


And, below is the list of transactions done during the year:





























StockBuy DateBuy PriceSell DateSell Price% Gain (Loss)% Portfolio Return*
DryShips (DRYS) Various11.66 01/29/2008 8.96 (23.29) (1.42)
DryShips Feb 15 Calls (OOCBC) 01/29/20090.20 01/16/2008 2.50 922 0.58
Companhia Siderugica Nacional (SID) Various11.03 01/29/2008 16.01 44.86 1.73
Taiwan Semi Feb 7.5 Calls (TSMBU) ExpiredNA 01/09/2009
0.90
NA 0.77
Total 2009 Stock Transactions - Gain/(Loss) -----1.66
Income (Dividends, Interests, etc.) -----NC
Net Realized 2009 Gain/(Loss)-----1.66



  • % 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.

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