I'm short call options now against DECK with a strike price of 52.5 in the month of April. My current net cost after selling options over the last year is under 37/share. So if my shares are called away next month, I'll have a gain of 42% in one year.
DECK is currently trading at around 52.
If my shares aren't called I'll be more aggressive selling call options against it for the remainder of the year with the goal of dropping my cost to under 32.
I originally got involved in DECK because of their strong balance sheet-[$10/share in net cash] and the fact that they were earning over $4 per share.
If it's not protective put which involves buying a put option on shares that are simultaneously owned in the account, then IRS rules say you must have the necessary cash funds in the IRA account to pay for exercising the put until the put expires. The worst thing that can happen -- you lose the entire amount of the put's strike price. So on less your bet is fairly certain, it seems foolish to do this kind of trading within an IRA! Money you lose in an IRA account can't be replaced at will.