Options Expiry – Closed May 8 Covered Calls on Direxion 3X Bull ETF (FAS)

As we twittered previously, we wrote May 8 covered calls on our Direxion 3X Bull ETF (FAS) shares at 1.5 on May 4th. Those were closed on Friday at 0.90 for a small gain. We decided to buy back the option and close our position as otherwise our shares would have been called away on Saturday following options expiry as the stock closed well above 8 on Friday.

Below is our updated portfolio - it is about 21% in the red. It includes roundtrips on covered calls we twittered about previously. As a percentage of our total portfolio value, those roundtrips brought in a return of just under 0.7%. Our cash position is about 17% . The stock market rallied but we have stayed put so far:

Stock	Buy Date	Buy Price	Current Price	Current % Of Portfolio	Unrealized % Return	Yield as % of Portfolio Value
Altria (MO)	Various	16.69	16.98	4.06	1.77	0.38
Philip Morris International (PM)	1/4/2005	32.19	43.17	8.66	34.10	0.45
Kraft Foods (KFT)	Various	24.03	24.80	3.96	3.19	0.23
Pfizer (PFE)	Various	24.37	15.01	5.98	(38.40)	0.30
ICICI Bank (IBN)	5/18/2006 and 08/01/2008	25.28	23.39	9.33	(7.46)	0.30
Advantage Energy Fund (AAV)	11/2/2006	11.22	3.41	1.36	(69.62)	0.17
Central Europe & Russia Fund (CEE)	Various	39.23	22.11	6.17	(43.64)	0.03
Patni Computers (PTI)	8/10/2007	20.85	8.86	3.53	(57.54)	0.08
Itron Inc. (ITRI)	11/07/2007	85.01	48.68	3.88	(42.80)	None
Anthracite (AHR)	11/09/2007	7.97	0.69	0.28	(91.34)	0.00
ClickSoftware (CKSW)	11/09/2007	4.61	4.28	3.41	(7.16)	None
Harvest Energy (HTE)	11/28/2007	21.01	5.94	1.89	(71.73)	0.22
iRobot (IRBT)	12/18/2007	18.65	12.03	3.84	(34.94)	None
LDK Solar (LDK)	01/22/2008	30.49	8.02	1.92	(73.70)	None
Aegon N.V. (AEG)	04/28/2008	15.99	5.43	1.30	(66.03)	0.00
TD Ameritrade (AMTD)	05/21/2008	17.68	15.90	5.07	(10.09)	None
Trina Solar (TSL)	Various	24.90	16.95	6.76	(31.93)	None
Costco (COST)	08/01/2008	62.28	44.75	3.57	(28.15)	0.07
Frontline Limited (FRO)	10/06/2008	36.95	21.15	2.53	(42.76)	0.17
DryShips Incorporated (DRYS)	02/09/2009	6.96	6.84	3.82	(1.78)	0.00
Direxion Financial Bull 3X ETF (FAS)	04/13/2009	9.86	8.74	3.48	(11.36)	0.00
Cash				16.97
Total Portfolio					(21.03)	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	0.93	NA	0.65
Ericsson ADR (ERIC)	5/5/2008	11.83	04/18/2009	7.48	(36.80)	(3.04)
FASEB – May 10 calls on FAS	4/27/2009	0.55	04/22/2009	0.93	NA	0.14
FASEJ – May 8 calls on FAS	5/1/2009	0.93	04/30/2009	1.65	NA	0.29
FASEJ – May 8 calls on FAS	5/15/2009	0.90	5/4/2009	1.50	NA	0.24
Realized Gain/(Loss) YTD	-	-	-	-	-	1.13

• % 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.