The following adjustment was made today on Pfizer Inc (PFE). All prices include IB commissions.
| Criteria | Value |
|---|---|
| Dividend Champions Status | Fallen Angel* |
| Previous Years of Consecutive Dividend Increases | 41** |
| Fair Value Estimate | $27.00 |
| Target Buy Price | $20.00 |
| Target Margin of Safety | 25.93% |
| Actual Buy Price | $19.00 |
| Actual Margin of Safety | 29.63% |
*PFE is what I classify as a Fallen Angel (i.e. former Dividend Champion). PFE cut the dividend in 2009, but has since increased it in 2010 and 2011.
**Prior to cutting the dividend PFE had 41 years of consecutive dividend increases.
| Date | Stock | Description | Transaction | Status | Stock Investment | Income Generated |
|---|---|---|---|---|---|---|
| 8/19/2011 | PFE | CSP Margin Returned | CSP 100 PFE @ -19.00 | $1,900.00 | ||
| 8/19/2011 | PFE | Stock Assigned | EX 2 Aug11 19.00 Put @ -19.00 | ($3,800.00) | ||
| 8/29/2011 | PFE | Continued Trade | STO 2 Sep11 19.00 Call @ 0.39 | $78.31 |
Current Position Summary
| Cost Basis | ($3,800.00) |
| Income Generated | $166.63 |
| Percent Income Generated | 4.39% |
| Annualized Income Generated | 13.80% |
| Net Profit If Assigned | $166.63 |
| Percent Return If Assigned | 4.39% |
| Annualized Return If Assigned | 13.80% |
| Days Held to Expiration | 116 days |
Trade History
| Date | Stock | Description | Transaction | Status | Stock Investment | Income Generated |
|---|---|---|---|---|---|---|
| 5/23/2011 | PFE | CSP Margin Used | CSP 200 PFE @ 19.00 | ($3,800.00) | ||
| 5/23/2011 | PFE | Initial Put Option | STO 2 Aug11 19.00 Put @ 0.44 | Exercised | $88.32 | |
| 8/19/2011 | PFE | CSP Margin Returned | CSP 100 PFE @ -19.00 | $1,900.00 | ||
| 8/19/2011 | PFE | Stock Assigned | EX 2 Aug11 19.00 Put @ -19.00 | ($3,800.00) | ||
| 8/29/2011 | PFE | Continued Trade | STO 2 Sep11 19.00 Call @ 0.39 | $78.31 | ||
| 9/16/2011 | PFE | Totals | ($5,700.00) | $166.63 | ||
| DTE | 116 | Percent Income/Annualized | 2.92% | 9.20% |
