I sold $22.50 strike Sept 2010 puts on BR. My premium was $1.25 per share.
So, my premium was $1.25 per share, with $22.50 put aside to secure the put. That gives me a 5.55% return on the cash set aside. The cash will be unavailable until September, which is 4.8 months away. So my return is 5.55%/4.8 months or 1.16% per month.
I may buy calls on BR later. Unfortunately, LEAPs (which I prefer to buy in ordinary circumstances) are unavailable for this stock.
