Wednesday, October 24, 2012

COV - New Position

A new CSP position was established today on Covidien (COV). All prices include IB commissions.

Dividend Champions StatusChallenger
Years of Consecutive Dividend Increases6
Fair Value Estimate$76.00
Target Buy Price$53.20
Target Margin of Safety30.00%
Actual Buy Price$52.50
Actual Margin of Safety30.92%

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
10/24/2012COVCSP Margin UsedCSP 100 COV @ 52.50 ($5,250.00) 
10/24/2012COVInitial Put OptionSTO 1 Nov12 52.50 Put @ 0.49  $48.94

Position Summary

Cost Basis($5,250.00)
Income Generated$48.94
Percent Income Generated0.93%
Annualized Income Generated14.79%
Net Profit If Assigned$48.94
Percent Return If Assigned0.93%
Annualized Return If Assigned14.79%
Days Held to Expiration23 days