June Born To Sell Newsletter

Here is the June newsletter from Born To Sell:

	Seller's Paradise Jun 1, 2012
Selling Covered Calls In May Was A Good Call On May 7 we published a blog article suggesting you sell in-the-money covered calls for the month or for the summer. This was based on the historically weak summer months for the S&P 500, as seen in this chart showing median returns by month for the last 25 years: Given last month's performance, the in-the-money strategy was the right call. Despite the drop in May, all 6 suggested trades (AAPL, CRM, LNKD, CRUS, GOOG, VHC) with expiration dates of Aug 18 or Sep 22 are still in-the-money, and will yield annualized returns of 15.9% to 24.8% if they stay in-the-money. To read the full article, please see Sell (Covered Calls) In May An Go Away. More Apple Income Many people make a living off of writing covered calls on AAPL. The at-the-money weekly options often pay annualized returns of 80% or more. Of course, writing at-the-money options increases risk should the underlying drop by more than the option premium received, as AAPL did for many people in May. The solution is to reduce your return expections and write in-the-money or deep-in-the-money options instead of at-the-money. In the last several weeks we've completed 3 cycles with this strategy: May 8: all 3 strikes called away for annualized returns of 25% to 53% over 5 days. May 14: all 3 strikes not called, but then on May 21 were re-written at the same strike and then succcessfully called on May 25 for annualized returns of 52% to 79% over 12 days. May 29: all 3 strikes called away for annualized returns of 21% to 51% over 4 days. You can read about the trades in May 8, May 21, and May 29 blog entries. Free Covered Call Books Giveaway Like Born To Sell? Help us get the word out and you could win a free book on covered call investing, or an iTunes gift card:    There are 8 ways to enter (Facebook, Twitter, Google+, etc). Full details on theLink To Us And Win page. Thanks and good luck in the drawings! MSFT And 3 Other Covered Calls For Jun 16 Expiration With 2 weeks to go until the June options expire, the top 4 covered calls Born To Sell members have written are (in order of popularity): Rank Symbol Strike 1. MSFT 29 2. AAPL 585 3. CHK 15 4. INTC 26 (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. GE 5. CSCO 6. T 7. JNJ 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 Follow us: Facebook | Twitter or watch demos of Covered Call Tools (YouTube)

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.

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. 

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

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