Company Name

Stock Symbol

Stock Price

# of shares

Total Cost*

 Option Symbol

 Mar.

 Option Price

Income from sale*

Strike Price

Projected return if Called after one month*

Actual 

$ 

return*

Actual 

% 

Return*

ATHEROGENICS

 INC

RISKY

AGIX

$11.83

800

$9,484

AUBCV

$2.25

$1,778

12.5

23%

Comments:

Stock tanked on March 9. We are holding the stock for five trading days (through March expiration) anticipating a bounce and would normally sell the stock on Monday. However, this is a highly risky drug stock and the April calls are selling at a very high premium that we cannot pass up.  Price at $7.83 and value at $6,264 at 3/17/2007. Will now sell April 10 at Apr12.5 at $3.10. Not called in April. Since the stock price has dropped so low, we will retain it and continue to sell out-of-the-money calls as long as the bring in some additional premium. Price at 4/21/2007 is $3.65. Will now sell the May5 at $0.20. Not called in May. Price at 5/19/2007 is $2.35. Sold all shares to close out position.

IMERGENT

INC

IIG

$19.90

500

$9,970

IIGCX

$0.95

$458

22.5

17%

Comments:

Did not reach get-out price during volatility period. Not called in March. Price at $20.25 on 3/17/2007. Will now sell Apr22.5 at $0.80. Called in April at $22.50.

XM SATELLITE RADIO

XMSR

$13.98

700

$9,906

QSYCC

$0.55

$365

15

10%

Comments:

Did not reach get-out price during volatility period. Not called in March. Price at $13.16 on 3/17/2007. Will now sell Apr15 at $0.10. Exercised get-out price at $11.88 (-15%) on April 17, 2007 after buying back calls at $0.05.

IMMERSION CORP

IMMR

$7.18

1300

$9,354

IMUCU

$0.30

$361

7.5

8%

Comments:

Called in March at $7.50.

PDL BIOPHARM

PDLI

$19.16

500

$9,600

PQICD

$0.75

$358

20

8%

Comments:

Did not reach get-out price during volatility period. Not called in March. Price at $18.72 on 3/17/2007. Will now sell Apr20 at $0.60. Called in April at $20.00.

CYBX

$21.66

400

$8,684

QAJCX

$0.75

$284

22.5

7%

Comments:

Exercised get-out price at $18.41 (-15%) on March 12 after buying back calls at $0.05.

EARTHLINK INC.

ELNK

$7.23

1300

$9,419

MQDCU

$0.25

$296

7.5

6%

Comments:

Did not reach get-out price during volatility period. Not called in March. Price at $6.69 on 3/17/2007. Will now sell Apr7.5 at $0.05. Not called in April. Price at $7.29 on 4/21/2007. Will now sell May7.5 at $0.20. Called in May at $7.50.

KERYX BIOPHARM

RISKY

KERX

$12.25

800

$9,820

QKYCV

$0.55

$418

12.5

6%

Comments:

Exercised get-out price at $10.41 (-15%) on March 13 after buying back calls at $0.05.

LIFECELL CORP

LIFC

$24.11

400

$9,664

QKLCE

$0.65

$244

25

6%

Comments:

Did not reach get-out price during volatility period. Not called in arch. Price at $24.16 on 3/17/2007. Will now sell Apr25 at $0.70. Called in April at $25.00.

UNITED RENTALS INC.

URI

$29.30

300

$8,810

URICF

$1.05

$301

30

5%

Comments:

Did not reach get-out price during volatility period. Not called in arch. Price at $27.07 on 3/17/2007. Will now sell Apr30 at $0.25. Called in April at $30.00.

Income from sale of calls is +$8,609.

All positions closed out in May, 2007. Cost of these ten (10) stocks is $94,611. All positions closed out with return from premiums and appreciation is down ($284). Real return is -0.3% ($284/$94,611).