A new CSP position was established today on Strayer Education Inc (STRA). All prices include IB commissions.
| Criteria | Value |
|---|
| Dividend Champions Status | Challenger |
| Years of Consecutive Dividend Increases | 8 |
| Fair Value Estimate | $130.00 |
| Target Buy Price | $78.00 |
| Target Margin of Safety | 40.00% |
| Actual Buy Price | $70.00 |
| Actual Margin of Safety | 46.15% |
| Date | Stock | Description | Transaction | Status | Stock Investment | Income Generated |
|---|
| 3/6/2012 | STRA | CSP Margin Used | CSP 100 STRA @ 70.00 | | ($7,000.00) | |
| 3/6/2012 | STRA | Initial Put Option | STO 1 Apr12 70.00 Put @ 0.81 | | | $80.97 |
Position Summary
| Cost Basis | ($7,000.00) |
| Income Generated | $80.97 |
| Percent Income Generated | 1.16% |
| Annualized Income Generated | 9.38% |
| Net Profit If Assigned | $80.97 |
| Percent Return If Assigned | 1.16% |
| Annualized Return If Assigned | 9.38% |
| Days Held to Expiration | 45 days |
3 comments:
Hi,
A couple of questions:
Isn't STRA a bit risky now that the group seems to be in down trend?
Regarding TBT, what would contribute to US Treasury to go down?
What do you think of Altria (MO) as a CSP candidate?
Thanks in advance!
-Alex
Hi,
Got a couple of questions:
Isn't STRA a bit risky now that the group seems to be in a down trend?
Regarding TBT, what could contribute to a US Treasury down trend?
What do you think of Altria MO as a possible CSP candidate?
Thanks in advance!
-Alex
Re: STRA it all depends on your meaning of risk. I sold a put 46% below fair value, which I consider low risk.
Re: TBT, interest rates can't go much lower so I don't see much risk in TBT.
Re: MO, good solid company, dividend champion, but currently overpriced (i.e. over fair value).
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