Tuesday, January 24, 2012

BHP - New Position

A new CSP position was established today on BHP Billiton Ltd. (BHP). All prices include IB commissions.

Dividend Champions StatusChallenger
Years of Consecutive Dividend Increases9
Fair Value Estimate$100.00
Target Buy Price$70.00
Target Margin of Safety30.00%
Actual Buy Price$70.00
Actual Margin of Safety30.00%

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
1/24/2012BHPCSP Margin UsedCSP 100 BHP @ 70.00 ($7,000.00) 
1/24/2012BHPInitial Put OptionSTO 1 Feb12 70.00 Put @ 0.46  $45.97

Position Summary

Cost Basis($7,000.00)
Income Generated$45.97
Percent Income Generated0.66%
Annualized Income Generated9.99%
Net Profit If Assigned$45.97
Percent Return If Assigned0.66%
Annualized Return If Assigned9.99%
Days Held to Expiration24 days