Buy a stock then sell both sides of the Jan 2013 market price strike price then hedge the put sale..
For example: BAC
Yesterday's close was $6.80
The Jan 2013 $7.50 call sold for $1.10 the put for $1.89...= $2.90
Jan 2013 $5 put for .60
So!
Return is (2.90 -.60) ?$6.80 = $2.30 /$6.80 = 40%
Giveaway is $7.50 + $2.30 = $9.80
Exposure is .20 on sale of JAn 2013 $7.50 put...if the stock goes UP you BUY these back....if the stock goes down you buy back these calls then sell the $5 calls