New Born To Sell Newsletter

The following is the Feb 1 newsletter from Born 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.

A Triumph Of Strategy Over Hope Goldman Sachs released a recent study that shows how writing covered calls can help you beat the market. Conclusion: "Writing covered calls would have increased performance smartly over the past five years," Their study Beat Your Benchmark states, "The key to significantly outpacing the market seems to be selling calls against large-capitalization stocks with high implied volatility (the critical part of an options price) during months in which the company isn't reporting earnings." Doing this, Goldman reports, "boosted annual returns by 5.39 percentage points from 1996 to 2011, and reduced risk." To read more about the study along with 13 stocks to consider now, see A Triumph Of Strategy Over Hope on Barrons.com. Covered Call Screening Ever wonder how many covered call candidates exist at any given time? While it varies from day to day, normally there are around 230,000. Too many to look at individually but if you use a covered call screener you can reduce that number to something much more manageable. Quick example: To see the rest of this funnel and how it reduces the 16,537 candidates down to 38, please read our blog entry on Using A Covered Call Screener. Example trades for each of the final 38 candidates are listed, too. High Yield Dow 30 Industrials One popular screen to look for high yield (but relatively stable) stocks for covered calls is to sort the Dow 30 industrials by dividend yield, and then look for the lowest P/E ones near the top of the list. The idea being that you will be buying high yield value stocks. We did this in early January to find 8 stocks with low P/Es and high yields. Chevron (CVX) came out on top, and makes a good covered call candidate. To see the other 7 stocks, see our article on High Yield Stocks. Conservative vs Aggressive Use Of Covered Calls Despite being a conservative strategy, covered calls can be used aggressively if an investor wants to do that. While the conservative investor seeks large cap dividend paying blue chips that do not have earnings before expiration, the aggressive investor chooses momentum (and other high beta) stocks, trades on margin, and seeks the highest annualized returns possible. While the aggressive plan is great when it works, many investors have been burned at some point by following that strategy. For some conservative trade ideas, see our article on Writing Covered Calls For Consistent Profits. DMND And 3 Other Covered Calls For Feb 18 Expiration With just over 2 weeks to go until the Feb options expire, the top 4 covered calls Born To Sell members have written are (in order of popularity): Rank Symbol Strike 1. DMND 36 2. X 30 3. GE 19 4. MSFT 27 (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. GE 6. JNJ 7. F 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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New Born To Sell Newsletter

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Born To Sell has published the following newsletter on their site.

** Sell The Call does not recommend buying or selling any of the securities listed and responsibility for the information within the newsletter lies solely with Born To Sell.**

One Way To Profit From Market Volatility

Fortune magazine published an article last month on the benefits of covered calls. It states: "There's a simple strategy that can make a virtue out of market volatility: Build a portfolio around high-quality stocks with generous dividend yields to offer a cushion against market swings, and juice even more income from those stocks through the strategic use of covered calls. It's a strategy that makes sense for the forseeable future. Heightened volatility isn't going away anytime soon." Well said! To read more, check out the full article on Fortune.com.

Covered Call Screen For The Holidays

Knowing how to structure a themed investment thesis is a good skill to have as you explore ways to profit from your particular viewpoint. Covered Call Screen For The Holidays discusses some ideas on which sectors to focus on, what to watch out for, and how to create a diversified portfolio of covered calls using those sectors.

For Sale: John Deere Tractor

Runs good. Missing steering wheel and seat. Ideal for the person who has lost his ass and doesn't know which way to turn. Want more humor? Yes! More investment jokes!

Win $10,000 Of Trading Software

Born To Sell has been nominated for a trading software award! By helping us win 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"): TraderPlanet 2011 Star Awards Thanks! And good luck in the free drawing!

Covered Call Strategies

There are at least 3 popular ways to use covered calls: a replacement for lower yielding investments (cash, bonds) a way to generate extra income from stocks you already own more frequent trading doing short-term buy-writes Each has valid uses are 3 all are discussed in our article on covered call strategies.

Writing Your First Covered Call

Covered calls sound simple as a concept but if you're not familiar with call options, assignment, or strike price lingo then it can be a little confusing. We've put together a beginner's guide to writing covered calls that is just right if you're not clear on how it all works.

BAC And 3 Other Covered Calls For Dec 17 Expiration

With just over 3 weeks to go until the Dec options expire, the top 4 covered calls Born To Sell members have written are (in order of popularity): Rank Symbol Strike 1. BAC 6 2. MSFT 25 3. INTC 21 4. X 27 (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. VZ 6. GE 7. F 8. JNJ (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

New Born To Sell Newsletter

Sell The Call periodically sends out newsletters by other organizations dedicated to Covered Call trading. Here is one from Born To Sell. Click on the link to visit the site for more information.

11/11/11 11:11:11am And A Total Solar Eclipse

Only 11 days until the calendar and clock read 11/11/11 11:11:11am. You have to admit, that's pretty cool. And for those of you who like to plan way ahead: On August 21, 2017, there will be a total solar eclipse whose path will go all across the US mainland. See the map of its path.

15 Years Of 2% OTM Options On The Russell 2000

The University of Massachusetts recently released a study on covered calls that examines returns on a buy-write strategy for the Russell 2000 index over a 15 year period. The short summary: "Over the 182 month period of analysis, the RUT buy‐write strategy using 2% out‐of‐the‐money, one‐month calls generated higher returns than the underlying index (8.87% versus 8.11%) at about three‐quarters of the standard deviation (16.57% versus 21.06%)." Higher returns with less volatility? Works for us. We discuss this 34-page report (and make it available for download) in our article on Covered Call Return.

Any Dividend Yield For Any Stock

How would you like a 3% annual dividend yield on GOOG? Or a 5% yield on BAC? Or a 10% yield on AAPL? And still leave yourself room for some capital appreciation? Well, you can do it with covered calls and we've done all the math for you. Introducing... the Born To Sell Synthetic Dividend Yield Pages! We've got a page for every stock or ETF in existance. Here are a few examples: AAPL dividends from 3 to 10% BAC dividends from 3 to 10% GOOG dividends from 3 to 10% And, those pages update prices during market hours. Sweet. For more information and to find synthetic dividend yields for your favorite stock or ETF see our blog article on Dividend Yield.

Example Covered Call Portfolio

We are asked all the time to provide example covered call portfolios that are conservative and diversified. Rather than just give you the answer, we wrote an article on how to go about constructing the answer so that you can do it yourself. The methodology is straightforward and anyone can do it. Please read our article on Example Covered Call Portfolios.

Vote For Born To Sell!

We've been nominated for a trading software award. If you like our tools or site, please vote for us in the TraderPlanet 2011 Star Awards After you click the link, scroll down to the Trading Software category and we are listed as "Covered Call Investment Tools". Thanks!

Born To Sell TV

Sexy leading ladies, handsome heros, evil villians, tricky plot lines, surprise endings, explosions and car crashes... some new action hero movie? No! It's Born To Sell TV! And while our videos may not have *all* of the above, we do promise quick and to the point "how to" videos for covered call writers. Check out our new YouTube channel, Born To Sell TV. While you're there click the Subscribe button so you can stay infromed of new covered call videos as they become available.

RMBS And 3 Other Covered Calls For Nov 19 Expiration

With just over 3 weeks to go until the Nov options expire, the top 4 covered calls Born To Sell members have written are (in order of popularity): Rank Symbol Strike 1. RMBS 17 2. MSFT 27 3. BAC 6 4. INTC 25 (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. AAPL 3. MSFT 4. T 5. JNJ 6. GE 7. BAC 8. F (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

Here is the most recent Born To Sell free newsletter.

Seller's Paradise Jan 2, 2011
Happy New Year Covered Call Sellers!2010 is now part of history and we have the opportunity of 2011 ahead of us. Overall last year was a good year to be writing calls: Up a bit, down a bit, and then a strong finish in the last few months. You may have had more positions called away recently, but that probably means you're making money so hooray (and thanks) to the buyers of our call options.

MNKD And 3 Other Covered Calls For Jan 22 Expiration. Special congrats to Born To Sell members who chose MNKD (MannKind Corp) covered calls for the January option cycle (there are a lot of you). It is the #1 most commonly held position for the January cycle among our subscribers. The premiums were rich a few weeks ago and Born To Sell members took advantage by selling in-the-money covered calls.Then last week came the announcement that the FDA needed 4 more weeks to render a decision on their inhaled insulin product Afrezza. This pushed the expected decision date past the January option expiration and the Jan options lost tremendous time premium (a boon for anyone who had shorted them) while the stock barely moved. Glad our screener (and our Top 10 list) could help make you aware of the opportunity.

With 3 weeks to go until the January options expire, the top 4 covered calls Born To Sell members have written are (in order of popularity):
1.MNKD7.5
2.AAPL330
3.ISPH7.5
4.NFLX170
(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.)

Higher Interest Rates In 2011?2011 will most likely see an increase in interest rates from where we are today. This is not good news for people who own bonds, but there is a way to profit from rising interest rates (or hedge against them, depending on your bond exposure) by using covered calls, and it's the subject of our most recent blog posting: Rising Interest RatesMany experts agree that we will experience rising interest rates in 2011. If the economy falters and the dollar weakens, rates will rise as the US debt rating comes under pressure. Or, if the economy recovers then higher employment will increase inflation which will cause interest rates to rise. Either way, it looks like rates are heading higher...read more

Top 8 Covered Call Watchlist Stocks and ETFsCurrently, the top 8 stocks Born To Sell members are using for their Watchlist are (in order of popularity):
1.AAPL
2.F
3.MSFT
4.CSCO
5.NFLX
6.BIDU
7.BAC
8.GOOG
(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!)

New IRS Rules For Reporting Cost Basis Start In 2011Starting in 2011 the IRS is requiring brokers to report cost basis on all stock purchased after Jan 1, 2011, on the Form 1099-Bs that they send to their clients. Form 1099 has always reported your sales proceeds; now it will include your cost basis as well.

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:

TermPriceMonthly$59.95, Quarterly$149.95 (17% discount), and Annual$499.95 (31% discount)
Plus, all subscriptions begin with a no-obligation 2-week free trial. What are you waiting for?