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Saturday, February 26, 2011

3 Weeks left in ZAGG trade Code Yellow

The Zagg trade is Code Yellow and has three weeks left. The stock closed at $8.84. The March $10.00 call ask is priced at $0.40.

Earnings are due around the 14th of March.


- 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, February 22, 2011

Seeking Alpha Born To Sell Interview

The following link contains an interview that the Seeking Alpha editors had with Born To Sell's Mike Scanlon.

SA Editor interview of Born To Sell

Enjoy!

New Trade in ZAGG

Sell The Call has made a new covered call trade in ZAGG. The shares were bought at a price of $9.08. It was able to sell the March $10.00 call for $0.50.

For the first time, the trade has the opportunity to gain more in stock price appreciation than in the revenue generated from selling the call.


- 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.

Sunday, February 20, 2011

TIVO trade has ended Code Green

The TIVO trade has ended Code Green. TIVO closed above the $10.00 strike price. The shares were sold.

Sell The Call made 5.7 percent on this trade that lasted 4 weeks and three days.

The account will continue looking for a trade in the March/April time frame.

- 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.

Friday, February 11, 2011

One Week left in TIVO trade Code Green

There is one more week left in Sell The Call's current TIVO trade. The stock closed at $10.77. The ask of the Feb $10.00 call closed at $0.85. There are various stories that were found using Yahoo! Finance.

The account will continue to hold the trade. It will also look to do research for the next trade as option expiration is next Friday, February 18 and the trade is Code Green.

- 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.

Sunday, February 6, 2011

Cov Call trade possibilities $8-10 range

The following stocks have shown up on the screen as possible trades for March or April.

MBIA - Symbol is mbi, Current Stock Price is at $11.35, The March $12.00 Call bid is at $0.75

TIVO - Symbol is tivo, Current Stock Price is at $10.80, Current March $11.00 Call bid is at $0.80

Exelis - Symbol is exel, Current Stock Price is at $9.95, Current March $10.00 Call bid is at $0.80

Renesola - Symbol is sol, Current Stock Price is at $11.73, Current March $12.00 Call bid is at $0.80

ZAGG - Symbol is zagg, Current Stock Price is at $9.55, Current March $10.00 Call bid is at $0.75

*** It should be noted that Sell The Call does currently have a February Covered Call trade going on with TIVO. This trade will expire at the end of this week. ***

- 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.

Friday, February 4, 2011

2 Weeks until TIVO trade Code Green

There are two weeks left on the current TIVO trade. The trade is Code Green. The stock closed at $10.77.


The Feb $10.00 call ask is currently priced at $0.95. There are $0.17 left in time value. That is a drop of $0.33 from last week.

There was plenty of news articles on TIVO that you can find here.

Sell The Call continues to use sources like Yahoo! Finance and Optionsxpress to handle its research.

- 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, February 2, 2011

New Born to Sell Newsletter

Hey

The following newsletter is from Born To Sell. One of their top ten picks is Sell The Call's current TIVO trade!

Enjoy!

Want to know what a million dollars worth of $100 bills looks like? How about a billion? Or a trillion?! We have some fun graphics to help you visualize all that money in our How Much Is A Trillion Dollars? blog article.

Covered Bonds

A 'covered bond' is a security backed by a specific pool of mortgages that either have top-notch ratings or are guaranteed by the government. Unlike typical mortgage-backed bonds, banks guarantee investors' principal and retain the debt on their balance sheet.

They are popular in Europe but have been mostly ignored in the U.S. because issuers are unwilling to keep the mortgages on their books because they would then have to meet additional capital reserve requirements. The last covered bond from a U.S. bank was sold in 2007, when Bank of America completed a $2 billion deal. The most recent covered bond deal from a foreign bank (that was priced in US$) was done last week by the National Bank of Canada and yielded 1.659% for 3 years.

Covered Calls On Short Bonds

Well, covered bonds are interesting but what's even more interesting than 1.659% per year is earning time premium by selling covered calls on inverse bond ETFs. By taking on a little bit of risk we can do significantly better than 1.659%/year.

If interest rates rise, regular long bond funds will fall. But, their counterparts, the short (or inverse) bond funds, will rise. If you believe interest rates will rise you can use a strategy of writing covered calls on the inverse bond ETFs. However, many of these instruments are leveraged 2x or 3x (symbols such as TBT, PST, TMV, and TYO) and therefore not recommended for covered calls (unless you are really risk-loving).

The only real choice for an unleveraged inverse bond ETF is TBF which is the ProShares Short 20+ Year Treasury Profile. It will go up in value as the 20-year treasuries go down (which happens when 20-year interest rates increase). The only negative is that the options on TBF have fairly small open interest which means when placing an order to short them you probably will want to use a limit order to split the bid and the ask.

For example, you could buy TBF and sell an in-the-money Feb 45 call between the 75 cent bid and $1 ask. Since the TBF bid-ask spread is much smaller (only a penny or two), you could either leg in by selling the calls first and once filled buy TBF or, better yet, place a combo buy-write order (where you buy TBF and sell a call on it at the same time) for the net debit you are comfortable with. If you used a limit order to sell them for 85 cents (or a buy-write with a net debit of 44.58) and got filled then this would be your trade:

SymbolPriceOptionPriceReturnARIF
TBF45.43Feb 450.850.9%19.1%

ARIF = Annualized Return If Flat, and is the rate of return you would earn if TBF stays above 45 thru the Feb 19 expiration.

Bottom Line For Bond Holders

If you own bonds then you have rising interest rate risk. You could sell some bonds and put on an equity trade like a TBF buy-write (covered call) to (1) increase your yield, and (2) hedge your long bond position a little. You will be taking on more risk, but you'll also be making more, too: 19%/year instead of 2%/year. The way you lose if if interest rates fall during the time you own your TBF.

TIVO And 3 Other Covered Calls For Feb 19 Expiration

With 3 weeks to go until the February options expire, the top 4 covered calls Born To Sell members have written are (in order of popularity):

RankSymbolStrike
1.TIVO10
2.F18
3.SLV27
4.ATPG17

(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. These are not recommendations, they are merely a reflection of our members' current positions.)

Top 8 Covered Call Watchlist Stocks and ETFs

Currently, the top 8 stocks Born To Sell members are using for their Watchlist are (in order of popularity):

RankSymbol
1.AAPL
2.F
3.MSFT
4.VZ
5.SPY
6.NFLX
7.GE
8.CSCO

(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!)

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:

TermPrice
Monthly$59.95
Quarterly$149.95 (17% discount)
Annual$499.95 (31% discount)

Plus, all subscriptions begin with a no-obligation 2-week free trial. What are you waiting for? Start collecting premium today!

Happy Trading,

The Born To Sell Team

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TIVO trade is now Green

Tivo moved moved past $10.00 and closed at $10.30. The trade is now Green since the stock is now in the money. There is still $0.52 left in time value on the trade.

- 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.