Search This Blog

Monday, May 30, 2011

May Zagg trade results/observations

The May Zagg trade started on March 30 with the stock trading at $7.73. Sell The Call sold the May $9.00 call for $0.30 before commissions. The trade ended right at the strike price of $9.00. This is the first time that a trade has ended right at the strike price. This enabled Sell The Call to continue selling calls against the Zagg stock that Sell The Call owns.

There was an earnings release during this time in which Zagg beat quarterly estimates by $0.03 per share. This pushed the stock up past $10.00 per share before it settled in around $9.00.

Between the time that the March Zagg trade ended (March 18) and this one started (March 30), there wasn't a call available to sell and keep the trade profitable. The fact that Sell The Call had to wait before selling another call showed some vulnerability to the strategy that needs to be fixed. It means that the stop loss formula needs to be adjusted so that it is placed at a price point in which Sell The Call will still be able to sell another profitable call when the current one expires.

Below is a list of the weekly updates for this trade:

One Week left 
Earnings
Two Weeks left
Three Weeks left
Four Weeks left
Five Weeks left
Six Weeks left
Seven Weeks left
New Trade Started 

Saturday, May 28, 2011

7 weeks until current Zagg trade ends Code Yellow

There are seven weeks remaining until the current ZAGG trade ends. The trade is currently Code Yellow. The stock closed at $9.99. That is an increase of $0.99. The July $10.00 call ask price closed at $0.70. That is an increase of $0.20.

 - 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, May 26, 2011

Sell The Call May 25 Newsletter

Sell The Call Newsletter
Where finding stock to sell calls builds wealth
Volume I Issue 2

Disclaimer: This newsletter is information and is not to be taken as a recommendation to buy or sell any of the below securities. The responsibility for making that decision lies with the investor or trader. Please contact your own personal financial representative before making any trades or investments using the information from this newsletter. Sell The Call will notify readers what relationship it has with any of the securities listed below.

Sell The Call Newsletter is made in order to notify investors and traders of stocks that contain a higher than normal value to out of the money call options.  Selling calls against stock owned will create income and lower the cost basis for your stock position. Selling calls against stock can be looked at as adding a dividend to your position.

The following Spread Sheet contains stocks that Sell The Call has found to be call selling targets due to the high valuation of the call option to its corresponding stock price. If you or someone you know owns over 100 shares in the following stocks, selling calls might be an option to increase income and lower the cost basis of the stock.

Here is the May 25, 2011 report of stocks that were found in the $8.00 - $10.00 range, the $10.00 – 15.00 range.  If you do happen to trade or invest in this stock, please shoot us an email at info@sellthecall.com and let us know what you know about the stock. If you know of others that trade this stock, let them know that it has come up on Sell The Call’s radar.

$8.00 – 10.00 Range

Company Name
Stock Symbol
 Stock Price
Call Option Name
Option Symbol
Expiration Date
 Call Bid Price
Relationship?
Zagg
ZAGG
 $          8.88
July $9.00
zagg110716C00009000
15-Jul-11
 $               0.60
Currently owns stock and sold July $10.00 call
Elan
ELN
 $          8.90
July $9.00
eln110716C00009000
15-Jul-11
 $               0.60
None
Micron Electronics
MU
 $          9.57
July $10.00
mu110716C00010000
15-Jul-11
 $               0.50
None
Sunrise Senior Living
SRZ
 $          9.60
July $10.00
srz110716C00010000
15-Jul-11
 $               0.60
None



$10.00 - $12.50 Range

Company Name
Stock Symbol
 Stock Price
Call Option Name
Option Symbol
Expiration Date
 Call Bid Price
Relationship?
Pier 1 Imports
PIR
 $        11.78
July $12.00
pir110716C00012000
15-Jul-11
 $               0.65
None
Kulicke and Sofaa
KLIC
 $        11.63
July $12.00
klic110716C00012000
15-Jul-11
 $               0.60
None
Melco Crown Ent
MPEL
 $        10.65
July $11.00
mpel110716C00011000
15-Jul-11
 $               0.60
None

Tuesday, May 24, 2011

New Zagg trade

Sell The Call has sold the July $10.00 call for $0.30. This has dropped the cost basis of the stock for Sell The Call as well as increased possible revenue by selling the $10.00 call instead of the $9.00 call. The trade will last a maximum of eight weeks until July 15, 2011. If this trade goes to expiration, Sell The Call will have held ZAGG stock for up to 5 months, which is the longest time period in Sell The Call's trading.


- 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, May 23, 2011

ZAGG trade closed Code Yellow!!!!

ZAGG closed the day at $9.00. The trade closed Code Yellow. This means that the trade closed above the cost basis but below the strike price. This close confirms that the stock has to close above the $9.00 strike price in order to be assigned away.

Sell The Call will now look to sell either the June $9.00 call or the July $10.00 call depending on price.
 
- 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, May 17, 2011

Current ZAGG trade now Code Yellow

The current ZAGG trade is now Code Yellow. The stock is currently trading at $8.65. This is important as there are only 3 more trading trading days left in the trade.

If the stock does close below $9.00 on Friday, and Sell The Call decides that selling another call is the route to go, Sell The Call will then look to sell either a June call or a July call at the $9.00 or $10.00 strike prices.

- 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, May 16, 2011

1 week left until ZAGG trade expiration

There is one week left before the current ZAGG trade ends. Currently the trade is Code Green. The stock closed at $9.56. That is a rise of $0.44 from last week. The May $9.00 call ask price closed at $0.60. That is a $0.10 drop from last week. There was a rise in intrinsic value of $0.44 for the option and a drop in time value of the option of $0.54.


- 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, May 10, 2011

ZAGG Earnings

Zagg released their March quarter earnings. They made $0.13 per share on revenue of $27 Million. The link to the full earnings is below.

The stock pushed up past $10.00 after hours. The stock is currently Code Green.

Zagg Earnings

 - 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, May 9, 2011

2 Weeks until expiration

There are two weeks until the current ZAGG trade expires. Currently, the trade is Code Green. The stock is priced at $9.12. That is a difference of $0.24. The May $9.00 call ask price is currently at $0.70. That is a price difference of $0.15 with a current time value change of just $0.03 due to the rest of the change being intrinsic value.

- 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, May 6, 2011

New Born To Sell Newsletter

Here is a new newsletter from Born To Sell. Be sure to click on the link to check out the site.

Barron's Likes Born To Sell
"A terrific tool for those who generate income by selling calls against existing positions. Born To Sell gives covered call traders some great ideas."
Barron's Review of Born To Sell
Thanks, Barron's! Read the full article in the April 11, 2011, issue of Barron's.
Covered Call Tip - Buy Back On Dips
Some covered call traders have a 'set and forget' attitude where once they have sold some call options they just wait until expiration and let whatever happens happen. That is certainly a low-maintenance strategy, and can work well. But you can optimize your overall returns with a bit more time and attention.
On big down days (like today) it can often be a good idea to buy back your calls (which, presumably have fallen in value along with the underlying) and then wait for a bit of recovery in the underlying to sell new calls. It is a 'buy the dip' strategy for just the call option side of the trade. Of course, you have to still like the underlying stock or else you should just get out of both sides of the trade.
The strategy works best with options that have small spreads (high liquidity) so that your cost to exit the option you are currently short and then open a new option position after the underlying has gone up a bit is as small as possible. Now, we're not suggesting you attempt to day trade the option side of a covered call position, but after significant moves it can make sense to buy back the short options since you have captured most of the value and downside protection already.
Closed-End Funds Using Covered Calls
A recent report by Morgan Stanley notes that funds who write covered calls on part or all of their portfolios end up reducing volatility and delivering competitive returns. From the list of funds with active managers who use covered calls, the report favors three:
SymbolNameStrategy
NJFNFJ Dividend, Interest & Premium Strategy Fund75% value equity oriented with 25% in convertible securities
JGVNuveen Global Value Opportunity Fund73% in stocks and most of the remaining amount in higher-yielding fixed-income
EXGEaton Vance Tax-Managed Global Diversified Equity Income Fund62% of its portfolio in international stocks and a focus on dividend payers
Of course, the fact that these experienced managers are using the strategy only strengthens our conviction that covered calls are a good strategy. And you don't need to pay fund management fees to benefit from covered calls...anyone can do it with a little research time and effort.
Blog Articles
Here's a summary of April's blog articles (click on any article to read it):
ArticleSummary
Earnings Season With Covered CallsIncreased volatility four times per year... read more
Will You Be Assigned At Option Expiration?If a stock closes at or near the strike, what happens? read more
Bearish Sentiment Falls By One ThirdLargest drop in bearish sentiment in 7 years... read more
Funds Use Options For Income GenerationExtra income and a cushion against losses... read more
 
TIVO And 3 Other Covered Calls For May 21 Expiration
With just over 2 weeks to go until the May options expire, the top 4 covered calls Born To Sell members have written are (in order of popularity):
RankSymbolStrike
1.TIVO9
2.AAPL340
3.BMTI14
4.INTC20
(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.MSFT
3.INTC
4.F
5.GOOG
6.CSCO
7.IBM
8.XOM
(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
Follow us: Facebook | Twitter

Thursday, May 5, 2011

2010 Trades

Here is a review of the 2010 trades.

ARIA Jan 2010 trade

ARIA Mar 2010 

EXAS July 2010

EXAS October 2010

EDMC November 2010

LLEN December 2010




- 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.

2009 Trades

Click on the following links to see a summary of the trades made in 2009.

HGSI July 2009 trade

ACAD September 2009 trade

ACAD November 2009 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.

Earnings announcement for ZAGG trade

It was found on Yahoo! Finance that ZAGG will be announcing first quarter earnings next week on May 10.

Newsletter Update

The following $10.00 - $12.50 stocks have been found to be possible call selling opportunities.

Company Name Stock Symbol  Stock Price  Call Option Name Option Symbol Expiration Date  Call Bid Price  Relationship?
Spectrum Pharma sppi  $        10.40 June $11.00 sppi110618C00011000 17-Jun-11  $               0.95 None
Ion Geophysical io  $        12.30 June $13.00 io110618c00013000 17-Jun-11  $               0.60 None
LDK Solar ldk  $        11.10 June $12.00 ldk110618c00012000 17-Jun-11  $               0.61 None
Oclaro oclr  $        11.80 June $12.50 oclr110618c00012500 17-Jun-11  $               0.85 None
 
 - 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.