Copyright 2022
Arrow Publications
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PUT OPTION WRITING 
CALCULATION EXAMPLES
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      The following put option writing calculations were made with the Microsoft Excel PC templates provided with every copy of PUT OPTION WRITING DEMYSTIFIED:
      The "% Annual Return" column is the return to the investor on an annualized basis from premium income.  Note that for the $35 strike price options, which is over $4 below the current market price, the returns are very solidly double-digit. And for the next highest strike price ($37.50) one of the expiration dates offers a potential triple-digit return.

     
Actual Put Option Writing Calculations for 
Bed, Bath & Beyond (BBBY)
SEC.
SYMBOL

EXPIRATION
DATE
STRIKE
PRICE
# OF
DAYS
PREM.
%
ANNUAL
RETURN
NET
PREM.
INC.
$39.15
$39.15
$39.15
$39.15

10
10
10
10

15-Aug
15-Aug
21-Nov
21-Nov

$35.00
$37.50
$35.00
$37.50

    56
     56       154
   154
    
BHQTG
BHQTU
BHQWG
BHQWU



$0.80
$1.95
$1.95
$2.80

      52.14%
  105.52%
     46.22%
     51.46%
 


# OF
CONT.
SECURITY
PRICE
PREM.
INTRIN.
VALUE
PREM.
TIME
VALUE
MARGIN
REQUIRE.
PREM.
INCOME
$
RTN. OF
CAPITAL
$0.00
$0.00
$0.00
$0.00

$10,000
$12,045
$10,000
$12,895



$800
$1,950
$1,950
$2,800

$0
$0
$0
$0

$800
$1,950
$1,950
$2,800

$0.80
$1.95
$1.95
$2.80

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