Friday, January 28, 2011
3 weeks left in TIVO trade code Orange
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- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Thursday, January 27, 2011
LLEN trade analysis
It is always good to look back at recent trades to see if Sell The Call can do better in future trades. Regularly, there are multiple reasons as to why a trade is a success or a failure. Today, Sell The Call is going to look at its most recent trade, a covered call with L & L Energy. Sell The Call overall took a loss on the trade. We are going to look a one specific area where Sell The Call can take note and watch to make sure it improves on its trading.
Sell the Call started the trade by finding that LLEN had a December call bid value of $0.55 to its $10.00 call while the stock was trading at $9.63 on November 22, 2010. Sell the Call entered into a covered call trade by buying 100 shares of the stock and selling 1 December 2010 $10.00 call.
The stock proceeded to move up to $12.00 before expiration. The call meanwhile lost all but $0.05 of its time value. Sell The Call made the decision to buy back the call (incurring more cost as the call had intrinsic value of $2.00) before expiration and sell the January 2011 $12.50 call for $1.15. In the process, Sell the Call failed to recognize that these actions increased the cost basis of the stock up to over $11.00 while not having the price support needed to make such a trade. More importantly, this caused the stop loss point for the trade to move up higher than the support levels for the stock indicated. The stock moved down from that point and easily hit the stop loss price. This caused Sell the Call to buy back the call and sell the stock for loss on the trade.
It is very important to know where the likely support levels are for a stock when making covered call trades. In this case, Sell the Call did not recognize that the change in cost basis put the stop loss price over the expected support of the stock. In future trades that present an opportunity to roll forward to the following months, Sell the Call needs to be aware of movements to both the cost basis and the stop loss price movement before going forward with the trade.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Current status for TIVO trade is Yellow
- Don't forget to Like our Sell The Call Facebook Page and follow our Sell The Call Twitter page!
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Wednesday, January 26, 2011
Jan 26 Mar $14.00-15.00 Cov Call Opportunities
Company Name | Stock Symbol | Current Stock Price | Call Strike Price | Mar $15.00 Call Bid Price |
Atmel Corp | ATML | $13.70 | $14.00 | $0.90 |
LDK Solar | LDK | $13.38 | $14.00 | $1.29 |
Canadian Solar | CSIQ | $13.97 | $15.00 | $0.75 |
Assured Guaranty | AGO | $14.98 | $15.00 | $1.36 |
***Disclosure - Sell The Call does have positions in any of the above companies***
- Don't forget to Like our Sell The Call Facebook Page and follow our Sell The Call Twitter page!
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Tuesday, January 25, 2011
Jan 25 Mar $10 Covered Call Opportunities
TIVO - Symbol TIVO, Current Stock Price $9.88, Current Mar $10.00 Call Bid Price $1.22
** Disclosure - Sell The Call does have an open covered call trade that is to expire on February 18. **
- Don't forget to Like our Sell The Call Facebook Page and follow our Sell The Call Twitter page!
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Monday, January 24, 2011
TIVO trade now Code Yellow
- Don't forget to Like our Sell The Call Facebook Page and follow our Sell The Call Twitter page!
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Saturday, January 22, 2011
4 Weeks Left in TIVO trade code orange
The stock price of TIVO is currently at $9.56. Volume was low this week. The stock has fallen 2.7% since the account's purchase.
The Feb $10.00 call ask price (what the account would have to pay if the trade goes code red) is currently at $0.72. The call price has fallen 13.25% since the account sold the call. Regardless of what the stock does, the account expects the pace of the decline of time value in the call to accelerate.
- Don't forget to Like our Sell The Call Facebook Page and follow our Sell The Call Twitter page!
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Wednesday, January 19, 2011
New TIVO Trade!!!!
TIVO has been on some of the account's target $10.00 stocks to trade reports in previous posts.
- Don't forget to Like our Sell The Call Facebook Page and follow our Sell The Call Twitter page!
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Tuesday, January 18, 2011
Code Red on LLEN trade
The end result was a loss on the trade. This falls in line with the percentages on success (80% and failure 20%) with selling calls. So the account will be looking to find another trade in the Feb/Mar timeframe.
More to follow....
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Sunday, January 16, 2011
New Capital Added
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
One Week left in LLEN..code Orange
The LLEN stock is currently priced at $9.39. It has survived repeated attacks from Strategy Session on CNBC. It seems to have a solid base at $9.00. Red Chip lowered its price target to $17.00 from $19.00.
The Jan $12.50 call has become worthless. So the account has maximized its profit from the call.
The account recommends taking a look at the news for LLEN through Yahoo! Finance. Reports from CNBC, Thestreet.com, SeekingAlpha, and Motley Fool were issued just in the last week.
Overall, if the stock does not hit the stop loss, the account will be looking to sell another call (either Feb or Mar) on LLEN to decrease both the cost basis and stop loss prices.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Thursday, January 13, 2011
Feb $15 Covered Call Opportunities
Direxion Financial Bear - Symbol TZA, Stock Price $14.57, Current Feb $15.00 call bid price $1.05
Rare Element Res - Symbol REE, Stock Price $14.56, Current Feb $15.00 call bid price $0.90
Sell The Call has no relationship with any of the above stocks.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Monday, January 10, 2011
This week's Feb $10 cov call opportunities
Gulf Resources, Inc - Symbol is GFRE, Current Stock Price is $9.92, Current Feb $10.00 call Bid Price is $0.65
Mannkind - Symbol is MNKD, Current Stock Price is $8.41, Current Feb $9.00 Call Bid Price is $1.65
Tivo Inc - Symbol is TIVO, Current Stock Price is $9.95, Current Feb $10.00 Call Bid Price is $1.10
Xenoport - Symbol is XNPT, Current Stock Price is $9.24, Current Feb $10.00 Call Bid Price is $.60
Disclosure: Sell The Call does not have any relationship with any of these companies.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Friday, January 7, 2011
LLEN trade two weeks left
The stock price is $10.30. Right now the stock is between a monthly high of over $13.00 and a low of $9.03
The Jan $12.50 call ask price is now $0.20.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Tuesday, January 4, 2011
This week's $10.00 Call Selling Opps
Radian Group, Inc. - Symbol RDN, Current Stock Price $8.92, Current Feb 2011 $9.00 bid price $0.70
Direxion Financial Bear 3X - Symbol FAZ, Current Stock Price $8.75, Current Feb $9.00 bid price $0.75
Delcath Systems - Symbol DCTH, Current Stock Price $9.64, Current Feb $10.00 bid price $0.76
Vivus Inc. - Symbol VVUS, Current Stock Price $9.82, Current Feb $10.00 call bid price $0.94
Renesola - Symbol SOL, Current Stock Price $9.37, Current Feb $10.00 call bid price $0.50
Tivo - Symbol TIVO, Current Stock Price $9.49, Current Feb $10.00 call bid price $0.95
Orexigen Technologies - Symbol OREX, Current Stock Price $9.43, Current Feb $10.00 call bid price $1.50
Mannkind Corporation - Symbol MNKD, Current Stock Price $8.45, Current Feb $9.00 call bid price $1.68
Disclosure: Sell The Call has no positions in any of these companies.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Monday, January 3, 2011
Seller's Paradise Jan 2, 2011
Happy New Year Covered Call Sellers!2010 is now part of history and we have the opportunity of 2011 ahead of us. Overall last year was a good year to be writing calls: Up a bit, down a bit, and then a strong finish in the last few months. You may have had more positions called away recently, but that probably means you're making money so hooray (and thanks) to the buyers of our call options.
MNKD And 3 Other Covered Calls For Jan 22 Expiration. Special congrats to Born To Sell members who chose MNKD (MannKind Corp) covered calls for the January option cycle (there are a lot of you). It is the #1 most commonly held position for the January cycle among our subscribers. The premiums were rich a few weeks ago and Born To Sell members took advantage by selling in-the-money covered calls.Then last week came the announcement that the FDA needed 4 more weeks to render a decision on their inhaled insulin product Afrezza. This pushed the expected decision date past the January option expiration and the Jan options lost tremendous time premium (a boon for anyone who had shorted them) while the stock barely moved. Glad our screener (and our Top 10 list) could help make you aware of the opportunity.
With 3 weeks to go until the January options expire, the top 4 covered calls Born To Sell members have written are (in order of popularity):
1.MNKD7.5
2.AAPL330
3.ISPH7.5
4.NFLX170
(Note: Born To Sell members have access to the full Top 10 Covered Call list, as well as having this list update real-time as members change positions.)
Higher Interest Rates In 2011?2011 will most likely see an increase in interest rates from where we are today. This is not good news for people who own bonds, but there is a way to profit from rising interest rates (or hedge against them, depending on your bond exposure) by using covered calls, and it's the subject of our most recent blog posting: Rising Interest RatesMany experts agree that we will experience rising interest rates in 2011. If the economy falters and the dollar weakens, rates will rise as the US debt rating comes under pressure. Or, if the economy recovers then higher employment will increase inflation which will cause interest rates to rise. Either way, it looks like rates are heading higher...read more
Top 8 Covered Call Watchlist Stocks and ETFsCurrently, the top 8 stocks Born To Sell members are using for their Watchlist are (in order of popularity):
1.AAPL
2.F
3.MSFT
4.CSCO
5.NFLX
6.BIDU
7.BAC
8.GOOG
(Note: Born To Sell members have access to the full Top 20 Watchlist, as well as having this list update real-time as members change their watchlists. And, you can have the highest yielding covered calls from your personal watchlist emailed to you after the close each day. Never miss a fat premium from your watchlist again!)
New IRS Rules For Reporting Cost Basis Start In 2011Starting in 2011 the IRS is requiring brokers to report cost basis on all stock purchased after Jan 1, 2011, on the Form 1099-Bs that they send to their clients. Form 1099 has always reported your sales proceeds; now it will include your cost basis as well.
Want More Covered Call Goodness?Born To Sell is dedicated to only one thing: Making Money With Covered Calls. Our subscribers have access to state-of-the-art covered call screeners and covered call portfolio management tools. For less than the profit of a single trade you could be enjoying recurring monthly income using our tools. Three subscription types to choose from:
TermPriceMonthly$59.95, Quarterly$149.95 (17% discount), and Annual$499.95 (31% discount)
Plus, all subscriptions begin with a no-obligation 2-week free trial. What are you waiting for?
LLEN trade 3 weeks left
LLEN opened the week at $9.37 and closed at $10.80. The high for the week was $10.94 and the low was $9.03.
The Jan 2011 $12.50 call ask price finished the week at $0.45.
There are three weeks until the option expires.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.