Tuesday, February 12, 2013

AVP - Adjustment

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

AVP rose over 20% today on positive earnings. I got busy yesterday and didn't have time to buy back the Feb13 16.00 Call before earnings. So, today I rolled it out to Jul13 16.00 Call for a net credit to avoid assignment.

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
2/12/2013AVPBuy BackBTC 2 Feb13 16.00 Call @ -4.86  ($971.54)
2/12/2013AVPRoll Out/UpSTO 2 Jul13 16.00 Call @ 5.00  $999.84

Current Position Summary

Cost Basis($5,200.00)
Income Generated$533.98
Percent Income Generated10.27%
Annualized Income Generated4.76%
Net Profit If Closed($1,466.02)
Percent Return If Closed-28.19%
Annualized Return If Closed-13.06%
Days Held to Expiration788 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 @ 0.39Closed $78.68
1/17/2013AVPBuy BackBTC 2 Jan13 15.00 Call @ -1.01  ($201.54)
1/17/2013AVPRoll Out/UpSTO 2 Feb13 16.00 Call @ 0.76Closed $152.46
2/12/2013AVPBuy BackBTC 2 Feb13 16.00 Call @ -4.86  ($971.54)
2/12/2013AVPRoll Out/UpSTO 2 Jul13 16.00 Call @ 5.00  $999.84
7/19/2013AVP Totals ($5,200.00)$533.98
DTE788 Percent Income/Annualized 10.27%4.76%