Thursday, May 19, 2011

ABT - New Position

A new CSP position was established today on Abbott Laboratories (ABT). All prices include IB commissions.

This is the second position on ABT. The first position is a CC.

Dividend Champions StatusChampion
Years of Consecutive Dividend Increases38
Years of Positive Free Cash Flow (last 10 years)10
Fair Value Estimate$68.00
Target Buy Price$55.00
Target Margin of Safety20.00%
Actual Buy Price$52.50
Actual Margin of Safety22.79%

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
5/19/2011ABTCSP Margin UsedCSP 100 ABT @ 52.50 ($5,250.00) 
5/19/2011ABTInitial Put OptionSTO 1 Jun11 52.50 Put @ 0.55  $55.34

Position Summary

Cost Basis($5,250.00)
Income Generated$55.34
Percent Income Generated1.05%
Annualized Income Generated13.27%
Net Profit If Assigned$55.34
Percent Return If Assigned1.05%
Annualized Return If Assigned13.27%
Days Held to Expiration29 days