As someone who writes naked puts a few times per week and has been doing so for years, your returns are WAY overstated and simplified. My returns (each trade documented on my blog) are closer to 30% per YEAR. It's impossible for a put seller to expect returns based on the actual cost and profit of each trade. The basis should be what amount of money is kept in reserves in case the naked option is assigned to you. I keep half the value of the underlying stock in cash. When times are bad, I can take a loss, but limit that by selling out of the money options among other methods.
Commenting by HaloScan
