Tuesday, February 5, 2013

BTU - New Position

A new CSP position was established today on Peabody Energy (BTU). All prices include IB commissions.

This non-Dividend Champion position meets the minimum requirement of 12% Downside Protection and 12% Annualized Return.

Downside Protection13.81%
Annualized Return12.03%
Fair Value Estimate$31.00
Target Buy Price$18.60
Target Margin of Safety40.00%
Actual Buy Price$21.00
Actual Margin of Safety32.26%

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
2/5/2013BTUCSP Margin UsedCSP 100 BTU @ 21.00 ($2,100.00) 
2/5/2013BTUInitial Put OptionSTO 1 Mar13 21.00 Put @ 0.26  $26.31

Position Summary

Cost Basis($2,100.00)
Income Generated$26.31
Percent Income Generated1.25%
Annualized Income Generated12.03%
Net Profit If Closed$26.31
Percent Return If Closed1.25%
Annualized Return If Closed12.03%
Days Held to Expiration38 days