Monday, February 4, 2013

CHK - New Position

A new CSP position was established today on Chesapeake Energy (CHK). All prices include IB commissions.

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

Downside Protection11.92%
Annualized Return12.02%
Fair Value Estimate$26.00
Target Buy Price$15.60
Target Margin of Safety40.00%
Actual Buy Price$18.00
Actual Margin of Safety30.77%

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
2/4/2013CHKCSP Margin UsedCSP 100 CHK @ 18.00 ($1,800.00) 
2/4/2013CHKInitial Put OptionSTO 1 Mar13 18.00 Put @ 0.23  $23.11

Position Summary

Cost Basis($1,800.00)
Income Generated$23.11
Percent Income Generated1.28%
Annualized Income Generated12.02%
Net Profit If Closed$23.11
Percent Return If Closed1.28%
Annualized Return If Closed12.02%
Days Held to Expiration39 days