A position was established in Tivo, a "pay-per-dvr" company which essentially provides the same functionality as the personal video recorder most people now get with their cable, except Tivo collects a fee for the same thing. Tivo is now expanding into the "nielsen" sphere, and attempting to collect information about its users viewing habits. Since December, Tivo has traded within a relatively steady range of about 6.20 to 7.50, and so I view there to be relatively low downside risk. Additionally, Tivo beat estimates the last go around. And lastly, it is essentially on top of one if its strike prices, which makes the premium very good. The purchase info is below:
4/21/2009 -- Bought 100 TIVO @ 7.505
4/9/2009 -- Sold To Open 1 TIVO March $7.50 Call @ .66
The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $750.50
Downside Coverage: 8.79%
Possible Max Upside: 8.84%
Annualized Max Upside: 124.1%
Tuesday, April 21, 2009
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