Sold HEK puts. These puts have a strike price of $4/share and an expiration of June 2013. The premium paid was $0.60. I already own HEK stock, but would like to own more. If these puts are exercised by the buyer, I will be put HEK stock to fill my target allocation.
The total premium is 15% of the strike price; since I use only secured puts, that means I'm earning 15% on the money I've set aside for this position. The option duration is 4.1 months, so I'm earning 3.66% per month. I wouldn't make this trade if I didn't want to own the stock.