Friday, June 17, 2011

LOW - Adjustment




The following adjustment was made today on Lowes Companies Inc (LOW) All prices include IB commissions.

This is the second position on LOW.










CriteriaValue
Dividend Champions StatusChampion
Years of Consecutive Dividend Increases48
Fair Value Estimate$36.00
Target Buy Price$25.00
Target Margin of Safety30.56%
Actual Buy Price$21.00
Actual Margin of Safety41.67%








DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
6/17/2011LOWBuy Back and Roll OutBTC 2 Jun11 25.00 Put @ -2.20  ($439.44)
6/17/2011LOWContinued TradeSTO 2 Oct11 25.00 Put @ 2.93  $586.56


Current Position Summary





Cost Basis($5,000.00)
Income Generated$330.81
Percent Income Generated6.62%
Annualized Income Generated11.84%
Net Profit If Assigned$330.81
Percent Return If Assigned6.62%
Annualized Return If Assigned11.84%
Days Held to Expiration204 days


Trade History













DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
3/31/2011LOWCSP Margin UsedCSP 200 LOW @ 25.00 ($5,000.00) 
3/31/2011LOWInitial Put OptionSTO 2 May11 25.00 Put @ 0.50Closed $100.57
5/19/2011LOWBuy Back and Roll OutBTC 2 May11 25.00 Put @ -0.28  ($55.44)
5/19/2011LOWContinued TradeSTO 2 Jun11 25.00 Put @ 0.69Closed $138.56
6/17/2011LOWBuy Back and Roll OutBTC 2 Jun11 25.00 Put @ -2.20  ($439.44)
6/17/2011LOWContinued TradeSTO 2 Oct11 25.00 Put @ 2.93  $586.56
10/21/2011LOW Totals ($5,000.00)$330.81
DTE204 Percent Income/Annualized 6.62%11.84%