Buy 100 shares JCP at 6.63
Sell 1 Jan 29th 7 short call
Entire Package: 5.94 debit ($594) (which will be your per share break even -- $5.94, which is slightly above the 52-week low)
Max Profit: $106 (if called away at $7)
I look to take these off intratrade if the profit exceeds what I would make if called away; otherwise, I continue to sell short calls against (or roll the short call when its value reaches near worthless) at strikes at or above cost basis break even.