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.
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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.
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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!
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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.
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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.
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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):
(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.)
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Showing posts with label Apple. Show all posts
Showing posts with label Apple. Show all posts
Friday, December 7, 2012
New Born To Sell Newsletter
Below is the most recent Born To Sell Newsletter.
Thursday, August 2, 2012
August Born To Sell Newsletter
Below is the Born To Sell August newsletter. Topics discussed include retirement calculators, Apple Ex-dividend, and a list of popular covered call trades.
Sell The Call does not have a position in any of the above stocks.
** 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.
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Sell The Call does not have a position in any of the above stocks.
** 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.
Labels:
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Intel,
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Microsoft,
Retirement Calculators,
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Tuesday, June 5, 2012
June Born To Sell Newsletter
Here is the June newsletter from Born To Sell:
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Wednesday, May 9, 2012
Seeking Alpha Covered Call Strategy Articles for May 8 2012
Seeking Alpha has published the following May 8 2012 articles on the covered call strategy:
Mike Scanlon - Sell (Call Options) In May And Go Away: Apple (AAPL), Salesforce.com (CRM), LinkedIn (LNKD), Cirrus Logic (CRUS), VirnetX Holdings (VHC), and Google (GOOG)
Sell The Call does not have a position in any of the above stocks.
** 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.
Mike Scanlon - Sell (Call Options) In May And Go Away: Apple (AAPL), Salesforce.com (CRM), LinkedIn (LNKD), Cirrus Logic (CRUS), VirnetX Holdings (VHC), and Google (GOOG)
Sell The Call does not have a position in any of the above stocks.
** 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.
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.
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Labels:
Apple,
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Microsoft,
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Monday, April 16, 2012
April 1 Born To Sell Newsletter
The following Born To Sell newsletter was sent to Sell The Call on April 1st.
Free Money Printing Machine Offer
Free Money Printing Machine Offer
Born To Sell is pleased to announce that every new subscriber will receive a desktop-size money printing machine, for free! In addition, customers who sign up for a full 1-year subscription will receive a free high-speed money printing press:
To get your free money machine, visit the Free Money Machine Offer page.
23 Year Study On BuyWrite Index Performance
Asset Consulting Group recently released their analysis of 23 years of index option writing. The results show that writing covered calls increases returns and lowers portfolio volatility.
The study looks at several option-writing indices:
- BXM - CBOE S&P 500 BuyWrite Index
writes 1 month ATM (at the money) covered calls on S&P 500 - BXY - CBOE S&P 500 2% OTM BuyWrite Index
writes 1 month 2% OTM (out of the money) covered calls on S&P 500 - PUT - CBOE S&P 500 PutWrite Index
holds T-bills and writes 1 month ATM naked puts on S&P 500
The study then compares those to their benchmark, the S&P 500. In all 3 cases the annual return (from 1988-2011) was higher while the volatility was lower:

And the covered call indices have higher annual returns over a variety of time frames:

See more data on our blog article BuyWrite Index Performance
Stock Broker Reviews
Barron's has published stock broker reviews for the last 16 years. Every year they offer up their ratings and reviews of top brokers, awarding up to 5 stars in several categories, including:
- Best For Long Term Investing
- Best For Options Traders
- Best For Frequent Traders
And a special section for cost-conscious investors:
- Best Low Cost Brokers For Occasional Traders
- Best Low Cost Brokers For Frequent Traders
You can see the 2011 winners in our blog article Stock Broker Reviews.
VVUS And 3 Other Covered Calls For Apr 21 Expiration
With 3 weeks to go until the Apr options expire, the top 4 covered calls Born To Sell members have written are (in order of popularity):
Rank | Symbol | Strike |
---|---|---|
1. | VVUS | 20 |
2. | GE | 20 |
3. | MSFT | 33 |
4. | JNJ | 65 |
(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. | T |
4. | AAPL |
5. | GE |
6. | JNJ |
7. | CSCO |
8. | ABT |
(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
Follow us: Facebook | Twitter or watch demos of Covered Call Tools (YouTube)
Labels:
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Monday, March 26, 2012
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.
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.
Thursday, March 1, 2012
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
![market strategy]()
![I like Born To Sell]()
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 MarketAre 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 JournalEver 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 StoryWe 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.
Like Born To Sell?We're getting our social on and recently added Google +1 and Facebook 'Like' buttons to the bottom of our home page. If you enjoy Born To Sell's site or tools, we'd appreciate a couple of mouse clicks.
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.)
Second, click on the 'Like' button next to it. (If you don't have a Facebook account you can get one of those for free, too):
Note: If you're logged in to your Born To Sell account you will have to Logout before you will see the buttons (since you can only share public pages). Thanks for your help in getting the word out!
ONTY And 3 Other Covered Calls For Mar 17 ExpirationWith 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 StocksCurrently, 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
Follow us: Facebook | Twitter or watch demos of Covered Call Tools (YouTube)
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