Friday, January 25, 2013

VRX - New Position

A new CSP position was established today on Valeant Pharmaceuticals (VRX). All prices include IB commissions.

This non-Dividend Champion position meets the minimum requirement of 12% Downside Protection and 12% Annualized Return.

Downside Protection12.88%
Annualized Return12.89%
Fair Value Estimate$75.00
Target Buy Price$45.00
Target Margin of Safety40.00%
Actual Buy Price$57.50
Actual Margin of Safety23.33%

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
1/25/2013VRXCSP Margin UsedCSP 100 VRX @ 57.50 ($5,750.00) 
1/25/2013VRXInitial Put OptionSTO 1 Mar13 57.50 Put @ 1.00  $99.51

Position Summary

Cost Basis($5,750.00)
Income Generated$99.51
Percent Income Generated1.73%
Annualized Income Generated12.89%
Net Profit If Closed$99.51
Percent Return If Closed1.73%
Annualized Return If Closed12.89%
Days Held to Expiration49 days