Wednesday, November 23, 2011

LOW - Adjustment

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

Note: This is the second position on LOW.

Dividend Champions StatusChampion
Years of Consecutive Dividend Increases48
Fair Value Estimate$30.00
Target Buy Price$21.00
Target Margin of Safety30.00%
Actual Buy Price$21.00
Actual Margin of Safety30.00%

*The Fair value was lowered from $36.00 to $30.00 during the holding period, which slightly lowered my Margin of Safety.

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
11/23/2011LOWContinued TradeSTO 2 Jan12 21.00 Put @ 0.65  $130.55

Current Position Summary

Cost Basis($4,200.00)
Income Generated$361.66
Percent Income Generated8.61%
Annualized Income Generated12.99%
Net Profit If Assigned$361.66
Percent Return If Assigned8.61%
Annualized Return If Assigned12.99%
Days Held to Expiration242 days

Trade History

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
5/23/2011LOWCSP Margin UsedCSP 200 LOW @ 21.00 ($4,200.00) 
5/23/2011LOWInitial Put OptionSTO 2 Oct11 21.00 Put @ 0.56Expired $112.56
10/31/2011LOWContinued TradeSTO 2 Nov11 21.00 Put @ 0.59Expired $118.55
11/23/2011LOWContinued TradeSTO 2 Jan12 21.00 Put @ 0.65  $130.55
1/20/2012LOW Totals ($4,200.00)$361.66
DTE242 Percent Income/Annualized 8.61%12.99%