Today, 5/22/12, I sold 3 WIN Nov12 $12.00 Covered Calls for a net deposit of $13.72 in my taxable account.  My basis for these WIN shares is now $11.64.  This option trade produces a simple return of about .39% and an annualized return of about .80% on my prior basis if held to expiration.

I acquired these WIN shares last Friday when my Puts were in the money at expiration.  When I sold those Puts, I wrote the following: 

“The last time I sold Puts on Win was in August of 2010.  Altogether, I have previously sold Puts on WIN three times.  Each time the Put expired worthless.  I have yet to actually own any WIN shares.  If these shares are assigned to me I intend to sell the next higher strike that provides a reasonable return and hope to be able to catch a dividend or two before the shares are called away.”

So now, I own 300 shares.  I had intended to sell the next higher strike above my assigned price but instead opted for the same strike a little closer in.  However, I certainly expect to collect at least one dividend in July.  The ex-dividend date is June 17.

Speaking of dividends, WIN continues to pay a 25-cent quarterly dividend for about a 10.45% annualized return on its current price.  Add an option premium now and then to the dividends and there is a decent annual return.

Today, 2/8/12, I sold 3 WIN May12 12.00 Puts for a net deposit of $112.72 in my taxable account.  My basis for these WIN shares, if put to me, would be about $12.07.  This option trade produces a simple return of about 3.21% and an annualized return of about 11.61% on the potential assigned cost. 

The last time I sold Puts on Win was in August of 2010.  Altogether, I have previously sold Puts on WIN three times.  Each time the Put expired worthless.  I have yet to actually own any WIN shares.  If these shares are assigned to me I intend to sell the next higher strike that provides a reasonable return and hope to be able to catch a dividend or two before the shares are called away.

Speaking of dividends, WIN continues to pay a 25 cent quarterly dividend for about an 8.03% annualized return on its current price.  Add an option premium now and then to the dividends and there is a decent annual return on the investment if it should be assigned to me.

Yesterday, 10/19/10, I sold 1 WIN Nov11 12.50 Puts for a net deposit of $25.22 in an IRA account.  My basis for these WIN shares, if put to me, would be 12.25, plus trading costs.

This option trade produces about a 2.0% simple return and about a 22.85% annualized return on the potential assigned cost.  In a prior Put that I sold on Win I went out to Feb11 and the lower $10 strike price.  At this point I would rather have just purchased the stock and sold Covered Calls on it.  I decided this time to still sell the Put but for the current month to either receive the stock earlier or be in a position to sell Puts again.

I have been looking at WIN for sometime now.  Jim Cramer has promoted it as a good dividend stock with room to grow.  One of the panelists on CNBC’s Fast Money show called it last August.  And then I read a Motley Fool article that called WIN out as a good dividend stock.  It’s like the gods were speaking to me.  After all that I decided to do another transaction with WIN.

WIN pays a 25 cent quarterly dividend for about an 8.04% annualized return on its current price.  Add an option premium now and then to the dividends and there is a pretty good annual return on the investment if it should be assigned to me.