Friday, June 17, 2011

ABT - Adjustment




The following adjustment was made today on Abbott Laboratories (ABT). All prices include IB commissions.

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











CriteriaValue
Dividend Champions StatusChampion
Years of Consecutive Dividend Increases38
Years of Positive Free Cash Flow (last 10 years)10
Fair Value Estimate$68.00
Target Buy Price$55.00
Target Margin of Safety20.00%
Actual Buy Price$52.50
Actual Margin of Safety22.79%








DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
6/17/2011ABTBuy Back and Roll OutBTC 1 Jun11 52.50 Put @ -0.82  ($81.97)
6/17/2011ABTContinued TradeSTO 1 Aug11 52.50 Put @ 2.19  $219.03


Current Position Summary





Cost Basis($5,250.00)
Income Generated$192.40
Percent Income Generated3.66%
Annualized Income Generated14.54%
Net Profit If Assigned$192.40
Percent Return If Assigned3.66%
Annualized Return If Assigned14.54%
Days Held to Expiration92 days


Trade History











DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
5/19/2011ABTCSP Margin UsedCSP 100 ABT @ 52.50 ($5,250.00) 
5/19/2011ABTInitial Put OptionSTO 1 Jun11 52.50 Put @ 0.55Closed $55.34
6/17/2011ABTBuy Back and Roll OutBTC 1 Jun11 52.50 Put @ -0.82  ($81.97)
6/17/2011ABTContinued TradeSTO 1 Aug11 52.50 Put @ 2.19  $219.03
8/19/2011ABT Totals ($5,250.00)$192.40
DTE92 Percent Income/Annualized 3.66%14.54%