|Put Option||Premium||Return (%)|
|$25 July 20 2012||$45.01||1.80%|
|$25 August 17 2012||$38.01||1.52%|
I first sold the July 2012 put option on June 11 which means between that date and expiration of the August 2012 put option this Saturday there were a total of 67 days. When you annualize the premium return, 3.32%, you get an annual return of 18.09%. That’s not too bad considering that’s just money sitting in my account. I really like the idea of selling puts for stocks that you want to get into just at a lower price point. I don’t think I’ll be selling a put option for September’s expiration because the premiums are too low at the $25 strike. Although depending on what the $26 strike premium looks like it might make sense to sell one.