A new CSP position was established today on General Electric (GE). All prices include IB commissions.
| Criteria | Value |
|---|---|
| Dividend Champions Status | Fallen Angel* |
| Previous Years of Consecutive Dividend Increases | 32** |
| Fair Value Estimate | $25.00 |
| Target Buy Price | $20.00 |
| Target Margin of Safety | 20.00% |
| Actual Buy Price | $18.00 |
| Actual Margin of Safety | 28.00% |
*GE is what I classify as a Fallen Angel (i.e. former Dividend Champion). GE cut the dividend in 2009, but has since increased it in 2010 and 2011.
**Prior to cutting the dividend PFE had 32 years of consecutive dividend increases.
| Date | Stock | Description | Transaction | Status | Stock Investment | Income Generated |
|---|---|---|---|---|---|---|
| 5/23/2011 | GE | CSP Margin Used | CSP 200 GE @ 18.00 | ($3,600.00) | ||
| 5/23/2011 | GE | Initial Put Option | STO 2 Aug11 18.00 Put @ 0.50 | $99.16 |
Position Summary
| Cost Basis | ($3,600.00) |
| Income Generated | $99.16 |
| Percent Income Generated | 2.75% |
| Annualized Income Generated | 11.42% |
| Net Profit If Assigned | $99.16 |
| Percent Return If Assigned | 2.75% |
| Annualized Return If Assigned | 11.42% |
| Days Held to Expiration | 88 days |
