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Wednesday, March 30, 2011

New Call sold on ZAGG

Sell The Call has sold the ZAGG May $9.00 call for $0.30. With the stock priced at $7.43, the trade is currently Code Orange.


- 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, March 25, 2011

Only ZAGG stock owned...Code Orange

Zagg closed the week at $7.41. That is a close of $0.61 higher than last week. The trade is Code Orange.

Currently Sell The Call only owns the stock and is monitoring the options market to find a call selling opportunity.


- 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.

Thursday, March 24, 2011

Market Cap

Overall market capitalization of a company should not be ignored when finding companies to make covered call trades. Recently, Sell The Call made a trade with ZAGG. Even though the entry price for the stock was above the $8.00 minimum Sell The Call has for its trades, the market cap was in the $150 million dollar range, which is low. This low market cap tends to create large moves in the stock. Sell The Call is going to be researching whether there should be a floor in regards to overall market cap before making a covered call trade in a company.

Monday, March 21, 2011

Schwab buys Optionsxpress

Hey

Charles Schwab has bought Optionsxpress. Link below.

NYTimes Schwab buys Optionsxpress

Trade expired...now own stock

The current trade with ZAGG ended with the March $10.00 call expiring worthless. Sell The Call still owns the stock. The stock has fallen close to the stop loss (i.e. Code Red) zone.

Right now, the April and May options do not provide enough revenue at the price the stock is currently at to cover the trade costs if the trade goes Code Red. So Sell The Call will simply be holding the stock at this point until either the stock rises providing Sell The Call with the opportunity to sell the April or May call or the stock falls to the stop loss and Sell The Call sells the stock.

- 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.

Thursday, March 17, 2011

Expiration tomorrow

The ZAGG trade ends tomorrow. At least the March 2011 $10.00 call will expire worthless tomorrow. Sell The Call will then have the shares outright.

Sell The Call will simply hold onto the shares instead of immediately selling the April or May $10.00 call. This is because the shares are not far from the stop loss price that Sell The Call has set for the shares. The cost in commissions in selling the April call would create a greater loss if the shares were to fall to the stop loss price.

If the shares fall to the stop loss, Sell The Call will simply incur a commissions for the shares. If the shares rise in price, so should the call. Sell The Call will then act and sell the appropriate call creating a covered call 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.

Tuesday, March 15, 2011

Earnings for ZAGG

Quarterly and Annual earnings were released by ZAGG yesterday after the bell. The details are in the link below. The short report says they earned $0.13 for the quarter, which was one cent over expectations. Revenue was $29 million versus expectations of $25 million.

ZAGG Earnings

Unfortunately, the stock is getting hit.

The trade ends in three days. It is looking likely that the trade will end in either orange or red status.

- 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, March 11, 2011

1 Week in Zagg trade....Code Orange

There is one more week left in the current ZAGG trade. Currently, the trade is Code Orange. The stock closed at $7.64 . That is a change of -$0.73 from last week. The March $10.00 call closed at $0.25. That is no change from last week.

The fact that there is no change in the call price while the stock moved down shows a very high level of speculative action due to earnings being released on March 14th.

Earnings for the Dec 2010 quarter will be released on Monday, March 14th. This earnings report will probably have a large effect 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.

Friday, March 4, 2011

2 Weeks until Zagg trade ends

There are two weeks until the March ZAGG trade ends. The status of the trade is Code Orange. The stock closed at $8.37 . That is a loss of $0.47 and 5.3% loss for the account on Sell The Call's position in this stock. The March 2011 $10.00 ask closed at $0.25. That is a close of $0.15 below last week and a 37.5% gain in Sell The Call's position in the option. December 2010 quarterly earnings are scheduled to be released on Monday March 14th.

- 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, March 1, 2011

New Born to Sell Blog

Here is the latest newsletter from Born To Sell.

Penny Quiz: Zinc or Copper?
penny

US pennies were made of 100% copper until 1982. At that time the actual price of copper became so high that a penny contained more than a penny's worth of copper. Since then, the US Mint has made pennies with 97.5% zinc covered with a thin copper layer.

At the moment, zinc is about $1.12/pound and copper is about $4.47/pound. So, how many pennies weigh one pound? For 1982 and earlier it's about 146 pennies. For 1983 and later, it's about 181 pennies. Important note: Even though you could buy a pound of copper for $1.46 worth of pre-1982 pennies, it is illegal to melt pennies or nickels (or export them for melting) -- you could face up to 5 years in jail and $10,000 in fines. Better to save your pennies and invest in covered calls...

Legging In On The Last Day Of The Month

There is a well-known phenomenon that stocks tend to rise on the 1st day of each month. The theory is that mutual fund managers find themselves with new inflows of cash on that day, from people's automatic 401k contributions and such, creating new buying demand. In the last 16 months the S&P 500 has risen by an average of 1% on the 1st day of the month. You may not win every 1st of the month (like today) but on average over many months the historical statistics say you should do okay.

So how can covered call writers use this to their advantage? By legging into new positions over 2 trading sessions.

"Legging in" means you buy the stock first and then later sell the call (as opposed to doing a buy-write transaction where both legs are exectuted at the same time). You could buy stock near the close on the last day of the month, and then sell covered calls against that stock near the close of the 1st day of the month. In theory, the stock will have nudged up 1% or so during that 1st day and you can get more premium for the call option.

Blog Articles

Here's a summary of February's blog articles (click on any article to read it):

ArticleSummary
Buy The Dip In Hewlett PackardWhen a good company sells off during a bad market it creates an opportunity... read more
Roth IRA vs Traditional IRAEach has its advantages and disadvantages... read more
Dividend Yield Of 10% On AppleCreate a 10% dividend on Apple stock... read more
Deep In The Money CallsAfter a big run up, or just for income, sell deep in the money calls... read more

CCME And 3 Other Covered Calls For Mar 19 Expiration

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

RankSymbolStrike
1.CCME14
2.TIVO10
3.HGSI26
4.F16

Careful with TIVO: Earnings will be released after the close today. The other three do not have an earnings release scheduled before the March expiration.

(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.CSCO
5.INTC
6.GE
7.NFLX
8.BAC

(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