Today I wrote the following puts:
Medtronics (MDT): 3 contracts at $1.55/share, strike price of $34, expiring in August (51 days)
Precision Castparts (PCP): 1 contract at $3.10/share, strike price of $65, expiring in September (79 days)
Income from MDT: 300 shares * $1.55/share = $465
Return from MDT: ($1.55/$34)*100 = 4.5% over 51 days.
Income from PCP: 100 shares * $3.10/share = $3.10
Return from PCP: ($3.10/$65)*100 = 4.8% over 51 days.
These percentage returns are about what I aim for for shorter term puts (two to three months until expiration).
For longer term puts (four to six months) I aim for at least 7% returns.
