3 weeks left until current Alcoa trade expires

There are 3 weeks until the current Alcoa trade expires. The status of this trade is Code Orange. The stock closed the week at $10.02. That is a decline of $0.09 from last week. The April $11.00 call ask price closed the week at $0.09. That is a decline of $0.02 from last week.

** Disclaimer** - Sell The Call is simply posting information. This is not a recommendation to buy or sell any of the securities above. Do your due diligence before investing as there is risk to all investments.

List of 2011 trades

These are the trades that Sell The Call executed during 2011.

January LLEN trade
February TIVO trade
March ZAGG trade
May ZAGG trade
July ZAGG trade
July Yahoo trade
Sep Yahoo trade
Sep AA trade
Oct AA trade
Dec CLSN trade

** Disclaimer** - Sell The Call is simply posting information. This is not a recommendation to buy or sell any of the securities above. Do your due diligence before investing as there is risk to all investments.

Seeking Alpha Covered Call Strategy Articles 3/19-25/2012

Seeking Alpha published the following articles discussing the Covered Call strategy:

March 21

Helix Investment Management - Hedge The Market Top By Writing Covered Calls - S&P 500 (SPY), Dow Jones Industrial Average (DIA), Fidelity Nasdaq Index (ONEQ)

March 22

Parisomy Investment Research - Taking Cover: A Strategy For Dividend Stock Investors During A Market Pullback - Johnson and Johnson (JNJ), Altria (MO), Pfizer (PFE), Southern Company (SO), AT&T (T), American Capital Agency (AGNC), Kinder Morgan Energy Partners (KMP)

March 24

The Independent Investor - A Good Covered Call Strategy For Dividend Investors In Today's Market - Kraft (KFT), Philip Morris International (PM), AT&T (T), Walmart (WMT), Apple (AAPL), Chipotle (CMG), Priceline (PCLN)

** Disclaimer** - Sell The Call is simply posting information. This is not a recommendation to buy or sell any of the securities above. Do your due diligence before investing as there is risk to all investments.

4 weeks left in current Alcoa trade Code Orange

There are 4 weeks left on the current Alcoa trade. The status of the trade is Code Orange. The stock closed the week at $10.11. The April $11.00 call ask price closed the week at $0.12.

** Disclaimer** - Sell The Call is simply posting information. This is not a recommendation to buy or sell any of the securities above. Do your due diligence before investing as there is risk to all investments.

New Trade in Alcoa

Sell The Call has just sold the Alcoa April $11.00 call  for revenue of $0.09 per share after commissions and expenses. The call will expire on April 20. This brings the cost of the Alcoa shares owned down to $10.46 after figuring in expenses, call revenue, and dividends received. This also moves the trade up to Code Yellow status.

** Disclaimer** - Sell The Call is simply posting information. This is not a recommendation to buy or sell any of the securities above. Do your due diligence before investing as there is risk to all investments.

Current Alcoa trade ends Code Orange

The current trade with Alcoa ended with the call expiring. The trade ended Code Orange. The stock closed the week at $10.54.

Sell The Call will look into the market for another call to sell.

 ** Disclaimer** - Sell The Call is simply posting information. This is not a recommendation to buy or sell any of the securities above. Do your due diligence before investing as there is risk to all investments. 

Seeking Alpha Covered Call Articles (March 5-11)

Seeking Alpha published the following Covered Call strategy articles:

March 5
Allan Ellman - Using Covered Call Writing to Increase Dividend Yield

Rocco Pendola - Stop Your Whining: Create Your Own Apple Dividend

March 7

Rocco Pendola - Without Dividends and Covered Calls, You Are Not Investing

March 9

Aggressive Dividends - What Makes Covered Call ETF's So Lackluster

One week left in current Alcoa trade Code Orange

There is one week left in the current trade in Alcoa. The trade is currently Code Orange. The stock closed the week at $9.81. That is a decline of $0.43 for the week. The Mar $11.00 call ask price closed the week at $0.02. That is a decline of $0.02 for the week.

Sell The Call is researching the options market to find the next call to sell. This will continue to lower the cost basis for the trade.

** Disclaimer** - Sell The Call is simply posting information. This is not a recommendation to buy or sell any of the securities above. Do your due diligence before investing as there is risk to all investments. 

Seeking Alpha article on Covered Calls (Matthew Frankel)

Seeking Alpha published the following article on covered calls using the following stocks as examples:

Matthew Frankel - Using Covered Calls to Supercharge Your Retirement: Verizon (VZ), Johnson and Johnson (JNJ), Reynolds American (RAI)

** Disclaimer** - Sell The Call is simply posting information. This is not a recommendation to buy or sell any of the securities above. Do your due diligence before investing as there is risk to all investments. 

2 weeks until current Alcoa trade expires Code Orange

There are two weeks remaining on the current Alcoa trade. The trade is currently Code Orange. The stock closed the week at $10.24. That is a decrease of $0.19. The March $11.00 call ask price is now $0.05. That is a decline of $0.08 from last week.

** Disclaimer** - Sell The Call is simply posting information. This is not a recommendation to buy or sell any of the securities above. Do your due diligence before investing as there is risk to all investments. 

New Born To Sell Newsletter

This March 1 newsletter  from Born To Sell focuses on Apple. Mainly, it addresses the issue of how a covered call strategy and a stock like Apple be a fit. Details are below.

 How To Get Another 100 Points Out Of Apple

Apple is on some kind of crazy tear, rising from $440 in mid-January to $540 here at the end of February, finally being given a valuation multiple closer to what it deserves. Will it continue to rise to the next milestone of $600 or higher? Perhaps. But for those who like to hedge their bets, using covered calls can be a great way to keep the gains coming while you wait, and give you some downside protection in the event of a pullback or a period of flatness.

Critics will say that you don't want to put a cap on your upside with a rocket ship like AAPL. While that may be true for certain time frames with certain stocks (like AAPL during the last 6 weeks), over a longer period of time (where a stock doesn't go up every day) selling calls will help smooth out the inevitable dips (see A Triumph Of Strategy Over Hope on Barrons.com andOptions for Nervous Investors on WSJ.com).

If you're worried about leaving yourself some upside potential then sell calls that are farther out of the money. If you're worried about a near term correction then sell at-the-money or in-the-money calls (see 15-Year Covered Call Returns Study).

For tips on which options to write on AAPL to capture the next 100 points, seeHow To Get Another 100 Points Out Of Apple on SeekingAlpha.com.

What To Do In A Raging Bull Market

Are covered calls the best strategy in a raging bull market, like we've had in the last couple of months? No. But they're not a horrible choice, either. Just because you didn't make as much as you could have (if you hadn't written calls) doesn't mean you should abandon your conservative investment strategy.

To illustrate our thoughts on the matter we've put together a chart showing what the 'best' and 'good' strategies are for each market type:

Obviously, in a strong up market you just want to stay long on stocks and let them ride. If you're nervous about a correction, or just want to get a little extra income then a good strategy is to sell out-of-the-money covered calls.

In a sideways market selling at-the-money covered calls is the best strategy. The time premiums are highest in ATM options so you will maximize your income with this strategy. If you are slightly bullish then sell slightly out-of-the-money calls instead. And if you're slightly bearish then sell slightly in-the-money calls.

In a down market, the best strategy is not to be in it. Just hold cash. If you want to try and get some income in a down market then buy solid companies (not high fliers, momentum stocks, or stocks about to release earnings or FDA announcements) and sell in-the-money-calls against them. You'll have the most downside protection with ITM options.

Bottom line: Covered calls may not be the 'best' strategy in every market, but they are a 'good' strategy in any market. When used over a long period of time you should come out ahead by using a consistent covered calls strategy. The highs may not be as high (compared to buy-and-hold), but the lows certainly won't be as low, either.

Decoding The Wall Street Journal

Ever get confused by some of the lingo in the Wall Street Journal? Not quite sure how inverse leveraged ETFs work, or the relationship between interest rates, bonds, gold, oil, and the US dollar? Or how those hedge funds and PE guys make all that money? Now there's a new service that can help.

Decoding The Wall Street Journal is a daily email service that explains what each of the major articles in the Wall Street Journal mean, in simple plain English. If you've ever been in a situation where you're not exactly sure what the WSJ is saying, or the implications of what is said, you should check it out.

Share Your Covered Call Success Story

We would like to profile covered call success stories in future editions of Seller's Paradise. Do you have a covered call success story to share?

Want to share a few of your favorite covered call writing tips?
How long have you been trading covered calls?
What broker do you use to trade?
How many trades per month?
Stocks or ETFs?
Favorite research tools?
How many open positions do you manage?
Any entry or exit rules you abide by?
What kind of returns do you target? (or achieve?)

Include as many details as you like to describe your success and email us your story at support@borntosell.com. We may profile you in next month's issue.

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First, click on the +1 icon in the bottom of our home page. (If you don't have a Google +1 account, you can get one for free here.)

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ONTY And 3 Other Covered Calls For Mar 17 Expiration

With just over 2 weeks to go until the Mar options expire, the top 4 covered calls Born To Sell members have written are (in order of popularity):

Rank	Symbol	Strike
1.	ONTY	9
2.	AAPL	480
3.	VVUS	10
4.	GE	19

(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.)

INTC And Other Covered Call Watchlist Stocks

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

Rank	Symbol
1.	INTC
2.	MSFT
3.	AAPL
4.	T
5.	JNJ
6.	GE
7.	CSCO
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:

Term	Price
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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Dividend received from Alcoa

Sell The Call has received its second dividend payment from Alcoa. That brings the grand total to $0.06 per share so far received from Alcoa. This is important as it has brought down the cost basis of the trade down an extra $0.06.

The Alcoa trade is currently Code Orange. There are two weeks left on the current trade (sold the March $11.00 call).

** Disclaimer** - Sell The Call is simply posting information. This is not a recommendation to buy or sell any of the securities above. Do your due diligence before investing as there is risk to all investments.