Telefonaktiebolaget LM Ericsson (ERIC) April 7.5 Calls Exercised

The Telefonaktiebolaget LM Ericsson (ERIC) April 7.5 covered calls we wrote on 1/29/2009 were called away following options expiry as the shares closed well above 7.5. The net effect of those two transactions is roughly 2.5% hit on the return. The total returns from all our transactions are just about break even.

Below is our updated portfolio - it is about 30% in the red. It includes FAZ (Direxion 3X Bear) transaction we exited, as we twittered previously. Our cash position is about 18% - it is expected to go above 20% as we liquidate our FAS (Direxion 3X Bull) position within the next few days.:

Stock	Buy Date	Buy Price	Current Price	Current % Of Portfolio	Unrealized % Return	Yield as % of Portfolio Value
Altria (MO)	Various	16.69	16.99	4.54	(1.83)	0.38
Philip Morris International (PM)	1/4/2005	32.19	37.32	8.57	15.93	0.45
Kraft Foods (KFT)	Various	24.03	22.67	4.04	(5.68)	0.23
Pfizer (PFE)	Various	24.37	14.16	6.31	(41.89)	0.30
ICICI Bank (IBN)	5/18/2006 and 08/01/2008	25.28	17.51	7.80	(30.72)	0.30
Advantage Energy Fund (AAV)	11/2/2006	11.22	2.82	1.26	(74.88)	0.17
Central Europe & Russia Fund (CEE)	Various	39.23	18.37	5.73	(53.16)	0.03
Patni Computers (PTI)	8/10/2007	20.85	6.65	2.96	(68.13)	0.08
Itron Inc. (ITRI)	11/07/2007	85.01	46.55	4.15	(45.31)	None
Anthracite (AHR)	11/09/2007	7.97	0.49	0.22	(93.85)	0.00
ClickSoftware (CKSW)	11/09/2007	4.61	3.65	3.25	(20.82)	None
Harvest Energy (HTE)	11/28/2007	21.01	5.06	1.81	(75.89)	0.22
iRobot (IRBT)	12/18/2007	18.65	8.35	2.97	(54.84)	None
LDK Solar (LDK)	01/22/2008	30.49	8.39	2.24	(72.49)	None
Aegon N.V. (AEG)	04/28/2008	15.99	4.70	1.26	(70.60)	0.00
TD Ameritrade (AMTD)	05/21/2008	17.68	16.34	5.82	(7.60)	None
Trina Solar (TSL)	Various	24.90	12.38	5.51	(50.29)	None
Costco (COST)	08/01/2008	62.28	45.77	4.08	(26.51)	0.07
Frontline Limited (FRO)	10/06/2008	36.95	18.99	2.54	(48.59)	0.17
DryShips Incorporated (DRYS)	02/09/2009	6.96	7.17	4.47	2.96	0.00
Direxion Financial Bull 3X ETF (FAS)	04/13/2009	9.86	9.44	4.20	(4.26)	0.00
Cash				18.21
Total Portfolio					(29.30)	2.54

• For Altria and Philip Morris International, assumed spin-off ratio of 30.83:69.17. Altria is yet to supply the cost-basis info

Below is a summary of transactions during the year:

Stock	Buy Date	Buy Price	Sell Date	Sell Price	% Gain (Loss)	% Portfolio Return*
DryShips (DRYS)	Various	11.66	01/29/2009	8.96	(23.29)	(1.39)
DryShips Feb 15 Calls (OOCBC)	01/29/2009	0.20	01/16/2009	2.50	922	0.58
Companhia Siderugica Nacional (SID)	Various	11.03	01/29/2009	16.01	44.86	1.73
Taiwan Semi Feb 7.5 Calls (TSMBU)	Expired	NA	01/09/2009	0.90	NA	0.77
Taiwan Semi (TSM)	7/27/2006	8.70	03/03/2009	7.76	NA	(0.78)
Direxion Financial Bull 3X Shares (FAS)	03/16/2009	5.09	03/19/2009	6.53	28.31	1.26
Direxion Financial Bull 3X Shares (FAS)	03/23/2009	5.94	03/23/2009	6.22	4.63	0.19
Direxion Financial Bull 3X Shares (FAS)	03/24/2009	6.45	03/24/2009	7.12	10.30	0.44
Direxion Financial Bear 3X Shares (FAZ)	03/26/2009	19.67	03/27/2009	19.91	1.22	0.05
Direxion Financial Bull 3X Shares (FAS)	03/30/2009	5.49	03/31/2009	5.20	(5.35)	(0.23)
Direxion Financial Bear 3X Shares (FAZ)	04/09/2009	10.47	04/13/2009	11.03	5.40	0.22
RQCDU – Ericsson April 7.5 Calls	1/21/2009	NA	04/18/2009	7.50	NA	0.65
Ericsson ADR (ERIC)	5/5/2008	11.83	04/18/2009	7.48	(36.80)	(3.04)
Realized Gain/(Loss) YTD	-	-	-	-	-	0.46

• % 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.