Monday, November 20, 2006

Today's New Positions

As previously posted, two new positions were established today on ISE and MA. Both are solid companies with positive earnings, good return on equity, and low debt. Both are trading slightly above their fair value according to Morningstar. While I try to find companies trading at or below their fair value, sometimes these are hard to find. My main concern is the company's financial health and both of these companies are in great shape.

Both positions have 5 months until option expiration. The potential profit if called has already been received and can either remain in the account to collect interest or be invested into other positions.

Now, unless there's a significant price change between now and April 2007, I'll just sit back and wait until option expiration.