Friday, June 1, 2012

BHP - New Position

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

Dividend Champions StatusContender
Years of Consecutive Dividend Increases10
Fair Value Estimate$84.00
Target Buy Price$58.80
Target Margin of Safety30.00%
Actual Buy Price$55.00
Actual Margin of Safety34.52%

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
6/1/2012BHPCSP Margin UsedCSP 100 BHP @ 55.00 ($5,500.00) 
6/1/2012BHPInitial Put OptionSTO 1 Jun12 55.00 Put @ 0.44  $43.97

Position Summary

Cost Basis($5,500.00)
Income Generated$43.97
Percent Income Generated0.80%
Annualized Income Generated20.84%
Net Profit If Assigned$43.97
Percent Return If Assigned0.80%
Annualized Return If Assigned20.84%
Days Held to Expiration14 days