Tuesday, February 24, 2015

Stock Purchase: Baxter International Inc. (NYSE: BAX)

Quick update of my recent stock purchase of BAX.

On 02/18/15, I bought 30 shares BAX at $68/share. Details are as following:-


At the same time, I also wrote a Mar 20 puts with BAX, at striking price $62.50. I got net premium $28.90, and will purchase 100 shares BAX if assigned, at net cost per share $62.21.


What do you think of BAX?  Do you think it's a good opportunity to add some shares before its spin-off in the mid of 2015?



6 comments:

  1. Like the conservative OTM put writing a solid company you already wanted to own. It always feels good to get paid for low-balling the market.

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    1. Hi FV, thanks for stopping by. Yeah, I think this puts writing is somewhat conservative. :-)

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  2. Thanks for sharing your recent BAX purchase with us. I have been seeing this name pop up among many of the dividend bloggers and I can see why. Quite honestly I am invested in several other health names such as JNJ, ABT, ABBV, BCR and BDX and would prefer to add to those positions instead. Curious to see how your put works out as well.

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    1. Hi DivHut, you have so many solid holdings. Jealous of you since I just started my DGI journey :-)

      The put expiration date is 03/20/15. Let's see how it goes.

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  3. I picked up BAX back in November of last year, and would be happy to average down if prices stay low. That put is pretty low risk, so it will likely be an easy $28 for you. And at $62, BAX would definitely be a great value.

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  4. Hi W2R, Thanks for stopping by. Yes, I think $62 is a pretty conservative price.

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