NWN: Utility... distributer of Nat Gas. http://finance.yahoo.com/q/pr?s=NWN+Profile Recession resistant: http://finance.yahoo.com/q/bc?t=5y&s=NWN&l=on&z=l&q=l&c=&c=^DJI http://finance.yahoo.com/q/bc?t=5y&s=NWN&l=on&z=l&q=l&c= Trade: Sell the March '12 40 put and buy the March '12 35 put for a net of $35. Yield = 35/465 = 7.5% in 209 days or 13.1 % annualized. This is an' intend to be put' trade. If put NWN yields a dividend of 4.1% and a 45 covered call can augment that dividend by an additional 3.5% giving a net yield of 7.6% You could sell the 40 put plain and get 4.8% in the same 209 days or 8.5% annualized....but of course the spread has a higher yield because it has a much lower margin requirement because of the limited risk.