Baxter has been a stock on my Morningstar Stocks to Own Watch List for a while. Baxter also recently announced that it would spin off Baxalta Inc. – its biopharmaceuticals business by July 1, 2015 (update). Rather than doing a Cash Secured Put Trade, on 5/27/2015 I bought a thousand shares of Baxter at $67.12 per share. I also sold 10 – 67.50 Covered Calls and collected $600.00 in premium. I did this trade before the stock went ex-dividen on 5-28-2015 to collect the $.52 per share dividend that will be paid on July 1, 2015.
Hopefully the $600.00 Call premium and the $520 dividend payment will buy me a Margin of Safety in this trade.
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