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Friday, December 28, 2012

3 Weeks Left In ARNA Trade; Code Yellow Status

There are 3 weeks left on the Arena Pharma covered call trade. The status of the trade is Code Yellow. The stock closed the week at $8.85. That is a rise of $0.18 from last week. The Jan $10.00 call ask closed week at $0.22. That is no change from last week.

Previous covered call trades have been made in AA, OCZ, YHOO, ZAGG, LLEN, CLSN, EDMC, EXAS, ARIA

If you are interested in futures options or futures etf options, Sell The Call is now following Trading Futures ETF Options.

** 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. Be sure to Like ourFacebook page, and follow Sell The Call's Twitter and Stocktwits pages.  

Friday, December 21, 2012

4 Weeks Left On ARNA Trade

There are four weeks remaining on the current Arena Pharma trade. The status of the trade is Code Yellow. The stock closed the week at $8.63. That is a decline of $0.71 from where the trade started. It is higher than the cost basis by $0.18. The Jan $10.00 call ask price closed the week at $0.22. That is a decline of $0.30  from when the trade started on Wednesday.

Previous covered call trades have been made in AA, OCZ, YHOO, ZAGG, LLEN, CLSN, EDMC, EXAS, ARIA

If you are interested in futures options or futures etf options, Sell The Call is now following Trading Futures ETF Options.

** 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. Be sure to Like ourFacebook page, and follow Sell The Call's Twitter and Stocktwits pages.  

Tuesday, December 18, 2012

ARNA Rollover Covered Call Trade

For the first time, Sell The Call has rolled over a covered call trade. The December $9.00 call that was sold for $0.41 after purchasing the shares was purchased back for $0.43. The shares are currently trading at $9.34. A January $10.00 call was then sold for $0.52.  The cost basis for the shares is currently $7.99.

The status of the trade is Code Yellow.

Previous covered call trades have been made in AA, OCZ, YHOO, ZAGG, LLEN, CLSN, EDMC, EXAS, ARIA

If you are interested in futures options or futures etf options, Sell The Call is now following Trading Futures ETF Options.

** 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. Be sure to Like ourFacebook page, and follow Sell The Call's Twitter and Stocktwits pages.  

Friday, December 14, 2012

1 Week Left on ARNA Trade; Status Code Green

There is one more week remaining on the Arena covered call trade. The status of the trade is Code Green. The stock closed the week at $9.18. That is a rise of $0.62 from last week. The December $9.00 call ask price closed the week at $0.34. That is a rise of $0.12  from last week.

An interesting point in this day's trading is that the time value for the option went from $0.28 in the beginning of the day to $0.16 at close. Even though it is a significant drop, the price of the option has a higher than normal time value.

Sell The Call will watch the trade and see if a buyback will happen before next Friday.

Previous covered call trades have been made in AA, OCZ, YHOO, ZAGG, LLEN, CLSN, EDMC, EXAS, ARIA

If you are interested in futures options or futures etf options, Sell The Call is now following Trading Futures ETF Options.

** 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. Be sure to Like ourFacebook page, and follow Sell The Call's Twitter and Stocktwits pages.  

Wednesday, December 12, 2012

ARNA Trade Now Code Yellow

The Arena trade has now turned Code Yellow. The stock closed the day at $8.97. The Dec $9.00 call ask price closed the day at $0.28.

Previous covered call trades have been made in AA, OCZ, YHOO, ZAGG, LLEN, CLSN, EDMC, EXAS, ARIA

If you are interested in futures options or futures etf options, Sell The Call is now following Trading Futures ETF Options.

** 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. Be sure to Like ourFacebook page, and follow Sell The Call's Twitter and Stocktwits pages. 


Tuesday, December 11, 2012

ARNA Trade Turns Code Green

The current ARNA covered call trade has turned Code Green today. The stock closed the day at $9.12 . The Jan $9.00 call option ask closed the day at $0.38.

Sell The Call has a few options to consider now that the stock is above $9.00 so close to expiration. It will choose between one of the two opportunities below.  

- It can let the trade continue on its current track. That will result in the shares being sold and the trade ending on expiration day, December 21. It would total a profit of $1.22 per share.

- It can buy back the $9.00 call and sell a January call (either $9.00 or $10.00) for more revenue.


Previous covered call trades have been made in AA, OCZ, YHOO, ZAGG, LLEN, CLSN, EDMC, EXAS, ARIA

If you are interested in futures options or futures etf options, Sell The Call is now following Trading Futures ETF Options.

** 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. Be sure to Like ourFacebook page, and follow Sell The Call's Twitter and Stocktwits pages. 

Friday, December 7, 2012

2 Weeks Until ARNA Trade Ends; Status Code Yellow

There are two weeks remaining on the Arena Pharma covered call trade. The status of the trade is Code Yellow. The stock closed the week at $8.56. That is a decline of $0.30 from last week. The January $9.00 call ask price closed the week at $0.22. That is a decline of $0.19 from last week.

Previous covered call trades have been made in AA, OCZ, YHOO, ZAGG, LLEN, CLSN, EDMC, EXAS, ARIA

If you are interested in futures options or futures etf options, Sell The Call is now following Trading Futures ETF Options.

** 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. Be sure to Like ourFacebook page, and follow Sell The Call's Twitter and Stocktwits pages.

New Born To Sell Newsletter

Below is the most recent Born To Sell Newsletter.

Sum Of All Fears (Time Premium)
Right now there are 136,136,068 open call option contracts across all underlying stocks, ETFs, expirations, and strikes. The sum of all the time premium (not including intrinsic value) in those 136 million contracts is $12,370,031,659.88. That's $12 billion of wasting assets. Of course, 60% of those contracts will be closed prior to expiration, but at least $5 billion willtime decay to zero, and some of that will go to us covered call writers.
AAPL Weekly Trade
Followers of our blog know that we've had a good track record of weekly buy-writes on AAPL (24 out of 24 trades closed profitable). We believe this week's pull back is another good entry point.
What has changed in the last few days to justify a 70 point drop from 590-ish to 520-ish? Nothing fundamental to their business. Yes, there are fears of increased competition, but it's mostly a combination of tax-selling (people taking gains this year in advance of feared increases in capital gains rates next year) and margin requirements being increased for some AAPL shareholders.
We believe there is an opportunity this week. For details see our blog article onshort-term buy-write in AAPL.
Scanner Nominated Again
Born To Sell's covered call investment tools have been nominated (again!) for a trading software award. Help us win (by voting) and you are automatically entered into a drawing for $10,000 of trading software. Please vote for us in the Trading Software category. We are listed as "Covered Call Investment Tools":
Thanks! And good luck in the $10,000 free drawing!
How Professionals Use Options
A recent Options Industry Council article interviewing managers of a $200 million fund on how they use options stated: "(1) we don't own more than 15 names; we know these companies quite well and only deal with names we want to own, (2) if you can write calls 3 or 4 times per year you can increase returns substantially, and (3) we tend to stay within 90 days, and include dividends when we can."
Sounds like a reasonable strategy: Not chasing high flyers, being consistent in their use of options over time, and using relatively short time frames.
Buy-Writes By Pension Funds
Pension funds, who have historically been shy about using options, are beginning to see the wisdom, according to an article on MarketsMedia. Not all option strategies are created equal, and the income-generating technique of writing call options against stocks they own has some appeal.
"A buy-write strategy generated about 5-8% more than a long-U.S. equity strategy in 2011, when stocks were highly volatile yet finished roughly flat", according to Phil Gocke of OIC.
Read the full article Pensions Warm Up to Options Slowly.
AAPL And 3 Other Covered Calls For Dec 22 Expiration
With just over 2 weeks to go until the December options expire, the top 4 covered calls Born To Sell members have written are (in order of popularity):
RankSymbolStrike
1.AAPL560
2.AMRN11
3.DOW30
4.GMCR25
(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.)

Saturday, December 1, 2012

3 Weeks Unitl Expiration on ARNA Trade; Status Code Yellow

There are three weeks remaining on the current ARNA covered call trade. The status of the trade is Code Yellow. The stock closed the week at $8.86. That is a decline of $0.36 for the week. The Dec $9.00 call ask closed the week at $0.43. That is a decline of $0.12 for the week. Since the beginning of the trade, the stock has risen $0.84, while the option has risen $0.02.

Previous covered call trades have been made in AA, OCZ, YHOO, ZAGG, LLEN, CLSN, EDMC, EXAS, ARIA

If you are interested in futures options or futures etf options, Sell The Call is now following Trading Futures ETF Options.

** 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. Be sure to Like ourFacebook page, and follow Sell The Call's Twitter and Stocktwits pages.