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Monday, May 7, 2012

May Born To Sell Newsletter

Born To Sell has released its May Newsletter. The information is simply being passed on and is not a recommendation to buy or sell any of the securities mentioned.


Born To SellSeller's Paradise
May 1, 2012 
That's A Lot Of Nickels
There are at least two ways go get a billion dollars:
high frequency trading one nickel at a time
  1. Start a nationwide photocopy business like Kinko's and charge 5 cents a copy.
  2. Be a high-frequency trader and execute millions of trades per year where your average gain is 5 cents per trade (not per share, per trade).
The first is chronicled in the book Two Billion Dollars In Nickels, the second in our blog article on High-Frequency Trading.
Turn Apple Into An Income Stream
Recently we read an article on How To Turn Apple's Stock Into An Income Stream. The author, Rocco Pendola, makes several good points that we agree with:
  1. AAPL is a good stock for covered calls.
  2. Some people make a living just writing covered calls on AAPL.
  3. If you have an unrealized gain in AAPL (in a taxable account) and don't want the shares called away, you can buy back any in-the-money options you may have sold while they still have some time premium left.
In addition to writing for SeekingAlpha, TheStreet.com, and others, Rocco publishes the Option Investing Newsletter, which contains specific trade analysis and recommendations. He has some quality ideas in that newsletter and it's worth checking out.
AAPL Weekly Trade
Speaking of AAPL, hopefully you caught our blog article on Apr 16 where we laid out 5 possible in-the-money covered calls as a 5 day trade using the AAPL weeklys. Turns out that all 5 trades finished in the black, with the biggest success yielding 58.4% annualized return.
See the trade ideas in the Weekly Apple (AAPL) Trade blog article.
Which Is Better: Naked Put or Covered Call?
We are often asked about naked puts vs covered calls. Our advice to those who think one is better than the other is to check the profit & loss curves side by side (hint: they are the same if you use the same strike and expiration date).
Now, there are a few differences between the two. The differences involve things like account permissions, commissions, dividends, margin, and interest. But if you are trading at a low-cost broker with reasonable account permissions and margin rules then the differences are so small as to not really worry about. They are basically the same trade.
See the Naked Put vs. Covered Call analysis.
ARNA And 3 Other Covered Calls For May 19 Expiration
With less than 3 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.ARNA2
2.MSFT32
3.AAPL590
4.GE19
ARNA has an earnings release on May 10, and MSFT has an ex-dividend date on May 15.
(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):
RankSymbol
1.INTC
2.MSFT
3.AAPL
4.GE
5.JNJ
6.CSCO
7.T
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
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