Thursday, March 31, 2011

AVP - New Position

A new CSP position was established today on Avon Products Inc (AVP). All prices include IB commissions.

Dividend Champions StatusContender
Years of Consecutive Dividend Increases22
Years of Positive Free Cash Flow (last 10 years)10
Fair Value Estimate$36.00
Target Buy Price$25.00
Target Margin of Safety30.56%
Actual Buy Price$25.00
Actual Margin of Safety30.56%

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
3/31/2011AVPCSP Margin UsedCSP 200 AVP @ 25.00 ($5,000.00) 
3/31/2011AVPInitial Put OptionSTO 2 May11 25.00 Put @ 0.43  $85.07

Position Summary

Cost Basis($5,000.00)
Income Generated$85.07
Percent Income Generated1.70%
Annualized Income Generated12.42%
Net Profit If Assigned$85.07
Percent Return If Assigned1.70%
Annualized Return If Assigned12.42%
Days Held to Expiration50 days