There has been a lot of weakness in the past week with the Dow dropping around 500 points. I’ve got several companies on my watch list and have placed a couple of limit orders as of last week. One of these limit orders executed today on shares of BBVA
For those that are unfamiliar with BBVA, here’s a little information:
Banco Bilbao Vizcaya Argentaria SA (BBVA) is a Spain-based international financial group with presence in 32 countries. The Company’s activities are focused in such business units as banking, pension and insurance in Spain and Portugal, Mexico and South America. In the USA and Puerto Rico, the Bank only comprises banking business. In addition The Company has two cross-sectorial business units, Corporate and Investment Banking and Global Retail & Business Banking, which includes retail banking, commercial and small and medium enterprises (SMEs) banking, payment systems, consumer finance and private banking, among others. BBVA is a parent company of Grupo Banco Bilbao Vizcaya Argentaria, which comprises such entities as BBVA Banco Frances SA, BBVA Capital Finance SA, BBVA Senior Finance SAU and BBVA International Limited, among others. On March 7, 2012, BBVA acquired the whole ammount of shares in Unnim Banc SA.
For anyone interested in evaluating this company they should take a look at a very good 3-part article written by Caiman Valores on seeking alpha. Part 1 of the article can be found here. This is one of the best analysis on the bank that I’ve seen.
Now to the trade. I sold 4 BBVA $8 April 20th ’13 Puts @ 1.05. I received $420 in premiums and if assigned I would own an additional 400 shares of BBVA @ $6.95/share not counting commissions. This would bring my cost basis down slightly from $7.31/share currently to $7.13/share.
I have two other active options trades on BBVA that you can find on my options tab. I wrote about that “short straddle” trade here.
If all 3 options get assigned I would add a net of 600 additional shares bringing me to my limit of 1008 shares of BBVA with a cost basis of $6.23/share.
I’m Long BBVA and willing to commit to a max of 1000 shares. As of yesterday’s close I’m up 11.8% if I sold my shares.
Note: Unlike the rest of my holdings in my DG portfolio, BBVA does not have a streak of raising dividends, it is merely a speculative income holding and may get moved to my income portfolio.