I STO 2 YHOO Apr08 27.50 Puts for a deposit of $174.50 in an IRA.

YHOO keeps bouncing around 28, sometimes even dipping below my 27.50 strike price.  I still think that MSFT will be successful with its quest to acquire YHOO at $31 or perhaps even higher so 27.50 should be safe.  Even if it gets put to me I can sell the $30 Calls against it each month until it is called away or MSFT succeeds.  I could roll the Put out each month but buying it and selling the Call appears to generate greater cash flow.