On February 5, Vodafone temporarily dipped below $30. I was surprised because their recent results were good, several firms have reiterated buys on the stock and they have restarted talks with Liberty Global. Since I already own 100 shares @ $30.00 each, I decided to sell a put instead of buying additional shares outright.
Sold 1 VOD Put July 15 '16 $30 Put @ 2.55 ($11.20 commission + $0.01 SEC fee)
Days Held (sell date to expiry): 160
Net Premium: $243.79
Annualized Return = ($243.79 / ($3,000 - $243.79)) * 365/160 = 20.1%
In my opinion, other companies who's share price does not reflect good financial results include GILD ($85) and GM ($28.50).