The following adjustment was made 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 |
|---|---|---|---|---|---|---|
| 10/27/2011 | GE | Continued Trade | STO 2 Dec11 18.00 Call @ 0.40 | $79.15 |
Current Position Summary
| Cost Basis | ($3,600.00) |
| Income Generated | $208.31 |
| Percent Income Generated | 5.79% |
| Annualized Income Generated | 10.20% |
| Net Profit If Assigned | $208.31 |
| Percent Return If Assigned | 5.79% |
| Annualized Return If Assigned | 10.20% |
| Days Held to Expiration | 207 days |
Trade History
| 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 | Exercised | $99.16 | |
| 8/19/2011 | GE | CSP Margin Returned | CSP 2 @ 18.00 | $3,600.00 | ||
| 8/19/2011 | GE | Stock Assigned | EX 2 Aug11 18.00 Put @ -18.00 | ($3,600.00) | ||
| 10/25/2011 | GE | Dividend Received | DIV 200 Dividend @ 0.15 | $30.00 | ||
| 10/27/2011 | GE | Continued Trade | STO 2 Dec11 18.00 Call @ 0.40 | $79.15 | ||
| 12/16/2011 | GE | Totals | ($3,600.00) | $208.31 | ||
| DTE | 207 | Percent Income/Annualized | 5.79% | 10.20% |
