Wednesday, December 5, 2012

AVP - Adjustment

The following adjustment was made today on Avon Products Inc (AVP). All prices include IB commissions.

CriteriaValue
Dividend Champions StatusDeleted*
Years of Consecutive Dividend Increases0
Fair Value Estimate$15.00**
Target Buy Price$7.50
Target Margin of Safety50.00%
Actual Buy Price$26.00
Actual Margin of Safety-73.33%

*The dividend was lowered and AVP was deleted from the Dividend Contenders list.

**Fair Value was lowered from $36 to $15 since inception, which turned my 27.78% Margin of Safety into a 73.33% Premium.

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
12/5/2012AVPContinued TradeSTO 2 Jan13 15.00 Call @ 0.39  $78.68

Current Position Summary

Cost Basis($5,200.00)
Income Generated$554.76
Percent Income Generated10.67%
Annualized Income Generated6.43%
Net Profit If Closed($1,645.24)
Percent Return If Closed-31.64%
Annualized Return If Closed-19.06%
Days Held to Expiration606 days

Trade History

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
5/23/2011AVPCSP Margin UsedCSP 200 AVP @ 26.00 ($5,200.00) 
5/23/2011AVPInitial Put OptionSTO 2 Oct11 26.00 Put @ 0.82Exercised $164.56
10/21/2011AVPCSP Margin ReturnedCSP 200 AVP @ -26.00 $5,200.00 
10/21/2011AVPStock AssignedEX 2 Oct11 26.00 Put @ -26.00 ($5,200.00) 
12/1/2011AVPDividend ReceivedDIV 200 Dividend @ 0.23  $46.00
3/1/2012AVPDividend ReceivedDIV 200 Dividend @ 0.23  $46.00
4/4/2012AVPContinued TradeSTO 2 May12 25.00 Call @ 0.34Expired $68.55
6/1/2012AVPDividend ReceivedDIV 200 Dividend @ 0.23  $46.00
7/27/2012AVPContinued TradeSTO 2 Aug12 19.00 Call @ 0.09Expired $18.49
9/4/2012AVPDividend ReceivedDIV 200 Dividend @ 0.23  $46.00
9/14/2012AVPContinued TradeSTO 2 Oct12 19.00 Call @ 0.14  $28.48
12/3/2012AVPDividend ReceivedDIV 200 Dividend @ 0.06  $12.00
12/5/2012AVPContinued TradeSTO 2 Jan13 15.00 Call @ 0.39  $78.68
1/18/2013AVP Totals ($5,200.00)$554.76
DTE606 Percent Income/Annualized 10.67%6.43%