For those wanting an even safer investment, the 8-strike naked puts for January are now trading for $22 bid, $23 asked. The margin-safe price is all the way down to $9 per share (12.5% above the $8 strike price). Cash margin requirements are $80 (ten times the $8 strike) plus the $23 asked per contract or $103 all told. Up-front proceeds are $21.20 ($22 asked less 80 cents in commissions). So if held the eight months to expiration, the nominal return would be 20.6% which is 30.9% annualized. And with an expected early-out, the annualized return would likely balloon to the mid-to-high 30's.

And those that are ultra, ultra, ultra safe and want to invest in the FIVE-strike naked puts for January (margin-safe price of just $5.65 with the stock now $18.01), the bid is $10 and the ask is $11. Cash margin requirements are therefore $50 (ten times the strike) plus $11 or $61. Sellers of these options would receive $9.20 net per contract after commissions. And that's still 15.1% for eight months or 22.6% annuali9zed. And with the virtually-certainearly-out, actual annualized returns will be mid-20's.

Can you imagine earning a TWENTY-FIVE percent annualized return for JCP merely holding $5.65 when the stock is at $18, the underlying real estate is worth $14 to $18 per share, the 10-year low is $13.55 and George Soros just ten days ago bought 9% of the company's stock at $16?

Much to the dismay of my detractors, I had my Eureka moment retgarding this kind of situation in Aug. 2011 and I've been doing nothing but coining money for myself and my group of investors ever since. Which do you suppose is the better investment if you are looking to earn 15% over the next eight months - just needing JCP to be $5.65 or more or say needing Pfizer to be a $33 stock at which point the PE would be FIFTEEN for a 4% to 5% earnings grower?