Friday, July 27, 2012

NVS - Adjustment

The following adjustment was made today on Novartis (NVS). All prices include IB commissions.

This is the second position on NVS.

CriteriaValue
Dividend Champions StatusContender
Years of Consecutive Dividend Increases10
Fair Value Estimate$69.00*
Target Buy Price$55.20
Target Margin of Safety20.00%
Actual Buy Price$52.50
Actual Margin of Safety23.91%

*Fair Value was lowered from $71 to $69 since inception which lowered my 26.06% Margin of Safety to 23.91%.

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
7/27/2012NVSContinued TradeSTO 1 Sep12 60.00 Call @ 0.54  $54.25

Current Position Summary

Cost Basis($5,500.00)
Income Generated$192.19
Percent Income Generated3.49%
Annualized Income Generated6.02%
Net Profit If Assigned$692.19
Percent Return If Assigned12.59%
Annualized Return If Assigned21.67%
Days Held to Expiration212 days

Trade History

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
2/22/2012NVSCSP Margin UsedCSP 100 NVS @ 55.00 ($5,500.00) 
2/22/2012NVSInitial Put OptionSTO 1 Mar12 55.00 Put @ 0.79Exercised $78.97
3/16/2012NVSCSP Margin ReturnedCSP 100 NVS @ -55.00 $5,500.00 
3/16/2012NVSStock AssignedEX 1 Mar12 55.00 Put @ -55.00 ($5,500.00) 
3/19/2012NVSContinued TradeSTO 1 May12 57.50 Call @ 0.59Expired $58.97
7/27/2012NVSContinued TradeSTO 1 Sep12 60.00 Call @ 0.54  $54.25
9/21/2012NVS Totals ($5,500.00)$192.19
DTE212 Percent Income/Annualized 3.49%6.02%