Friday, January 25, 2013

MSFT - New Position

A new CSP position was established today on Microsoft Corp (MSFT). All prices include IB commissions.

Dividend Champions StatusContender
Years of Consecutive Dividend Increases10
Fair Value Estimate$35.00
Target Buy Price$24.50
Target Margin of Safety30.00%
Actual Buy Price$27.00
Actual Margin of Safety22.86%

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
1/25/2013MSFTCSP Margin UsedCSP 100 MSFT @ 27.00 ($2,700.00) 
1/25/2013MSFTInitial Put OptionSTO 1 Mar13 27.00 Put @ 0.42  $42.23

Position Summary

Cost Basis($2,700.00)
Income Generated$42.23
Percent Income Generated1.56%
Annualized Income Generated11.65%
Net Profit If Closed$42.23
Percent Return If Closed1.56%
Annualized Return If Closed11.65%
Days Held to Expiration49 days