Write the Jan 08 $35 put option for a put premium of $5.6 wheich drops your breakeven down to $29.40. Take the money you would have used to purchase the stock and deposit with E-Trade for a savings rate of 5.05%. This drops your breakeven for the year down to $27.70. If the stock is over $35 at the end of Jan 08 then this is around a 26% return. If the stock moves up then rewrite the put at a higher strike price and take the profits on the $35 put.