Thursday, June 21, 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$57.50
Actual Margin of Safety31.55%

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
6/21/2012BHPCSP Margin UsedCSP 100 BHP @ 57.50 ($5,750.00) 
6/21/2012BHPInitial Put OptionSTO 1 Jul12 57.50 Put @ 0.73  $73.12

Position Summary

Cost Basis($5,750.00)
Income Generated$73.12
Percent Income Generated1.27%
Annualized Income Generated16.01%
Net Profit If Assigned$73.12
Percent Return If Assigned1.27%
Annualized Return If Assigned16.01%
Days Held to Expiration29 days