Wednesday, April 4, 2012

AVP - Adjustment

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

CriteriaValue
Dividend Champions StatusContender
Years of Consecutive Dividend Increases22
Fair Value Estimate$25.00*
Target Buy Price$12.50
Target Margin of Safety50.00%
Actual Buy Price$26.00
Actual Margin of Safety-4.00%

*Fair Value was lower from $36 to $25 since inception which turned my 27.78% Margin of Safety into a 4% premium.

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
4/4/2012AVPContinued TradeSTO 2 May12 25.00 Call @ 0.34  $68.55

Current Position Summary

Cost Basis($5,200.00)
Income Generated$325.11
Percent Income Generated6.25%
Annualized Income Generated6.32%
Net Profit If Assigned$125.11
Percent Return If Assigned2.41%
Annualized Return If Assigned2.43%
Days Held to Expiration361 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 @ 0.34  $68.55
5/18/2012AVP Totals ($5,200.00)$325.11
DTE361 Percent Income/Annualized 6.25%6.32%