Wednesday, July 31, 2013

BHP - New Position

A new CSP position was established today on BHP Billiton Ltd. (BHP). All prices include IB commissions.

This is the second position on BHP. The first position is a CC.

Dividend Champions StatusContender
Years of Consecutive Dividend Increases10
Fair Value Estimate$80.00
Target Buy Price$56.00
Target Margin of Safety30.00%
Actual Buy Price$55.00
Actual Margin of Safety31.25%

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
7/31/2013BHPCSP Margin UsedCSP 100 BHP @ 55.00 ($5,500.00) 
7/31/2013BHPInitial Put OptionSTO 1 Aug13 55.00 Put @ 0.27  $26.93

Position Summary

Cost Basis($5,500.00)
Income Generated$26.93
Percent Income Generated0.49%
Annualized Income Generated11.17%
Net Profit If Closed$26.93
Percent Return If Closed0.49%
Annualized Return If Closed11.17%
Days Held to Expiration16 days