|Penny Quiz: Zinc or Copper?|
|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.
Here's a summary of February's blog articles (click on any article to read it):
|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):
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):
(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:
The Born To Sell Team
Tuesday, March 1, 2011
New Born to Sell Blog
Here is the latest newsletter from Born To Sell.