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.