The following adjustment was made today on Avon Products Inc (AVP). All prices include IB commissions.
AVP rose over 20% today on positive earnings. I got busy yesterday and didn't have time to buy back the Feb13 16.00 Call before earnings. So, today I rolled it out to Jul13 16.00 Call for a net credit to avoid assignment.
| Criteria | Value |
|---|---|
| Dividend Champions Status | Deleted* |
| Years of Consecutive Dividend Increases | 0 |
| Fair Value Estimate | $15.00** |
| Target Buy Price | $7.50 |
| Target Margin of Safety | 50.00% |
| Actual Buy Price | $26.00 |
| Actual Margin of Safety | -73.33% |
*The dividend was lowered and AVP was deleted from the Dividend Contenders list.
**Fair Value was lowered from $36 to $15 since inception, which turned my 27.78% Margin of Safety into a 73.33% Premium.
| Date | Stock | Description | Transaction | Status | Stock Investment | Income Generated |
|---|---|---|---|---|---|---|
| 2/12/2013 | AVP | Buy Back | BTC 2 Feb13 16.00 Call @ -4.86 | ($971.54) | ||
| 2/12/2013 | AVP | Roll Out/Up | STO 2 Jul13 16.00 Call @ 5.00 | $999.84 |
Current Position Summary
| Cost Basis | ($5,200.00) |
| Income Generated | $533.98 |
| Percent Income Generated | 10.27% |
| Annualized Income Generated | 4.76% |
| Net Profit If Closed | ($1,466.02) |
| Percent Return If Closed | -28.19% |
| Annualized Return If Closed | -13.06% |
| Days Held to Expiration | 788 days |
Trade History
| Date | Stock | Description | Transaction | Status | Stock Investment | Income Generated |
|---|---|---|---|---|---|---|
| 5/23/2011 | AVP | CSP Margin Used | CSP 200 AVP @ 26.00 | ($5,200.00) | ||
| 5/23/2011 | AVP | Initial Put Option | STO 2 Oct11 26.00 Put @ 0.82 | Exercised | $164.56 | |
| 10/21/2011 | AVP | CSP Margin Returned | CSP 200 AVP @ -26.00 | $5,200.00 | ||
| 10/21/2011 | AVP | Stock Assigned | EX 2 Oct11 26.00 Put @ -26.00 | ($5,200.00) | ||
| 12/1/2011 | AVP | Dividend Received | DIV 200 Dividend @ 0.23 | $46.00 | ||
| 3/1/2012 | AVP | Dividend Received | DIV 200 Dividend @ 0.23 | $46.00 | ||
| 4/4/2012 | AVP | Continued Trade | STO 2 May12 25.00 Call @ 0.34 | Expired | $68.55 | |
| 6/1/2012 | AVP | Dividend Received | DIV 200 Dividend @ 0.23 | $46.00 | ||
| 7/27/2012 | AVP | Continued Trade | STO 2 Aug12 19.00 Call @ 0.09 | Expired | $18.49 | |
| 9/4/2012 | AVP | Dividend Received | DIV 200 Dividend @ 0.23 | $46.00 | ||
| 9/14/2012 | AVP | Continued Trade | STO 2 Oct12 19.00 Call @ 0.14 | $28.48 | ||
| 12/3/2012 | AVP | Dividend Received | DIV 200 Dividend @ 0.06 | $12.00 | ||
| 12/5/2012 | AVP | Continued Trade | STO 2 Jan13 15.00 Call @ 0.39 | Closed | $78.68 | |
| 1/17/2013 | AVP | Buy Back | BTC 2 Jan13 15.00 Call @ -1.01 | ($201.54) | ||
| 1/17/2013 | AVP | Roll Out/Up | STO 2 Feb13 16.00 Call @ 0.76 | Closed | $152.46 | |
| 2/12/2013 | AVP | Buy Back | BTC 2 Feb13 16.00 Call @ -4.86 | ($971.54) | ||
| 2/12/2013 | AVP | Roll Out/Up | STO 2 Jul13 16.00 Call @ 5.00 | $999.84 | ||
| 7/19/2013 | AVP | Totals | ($5,200.00) | $533.98 | ||
| DTE | 788 | Percent Income/Annualized | 10.27% | 4.76% |
