|
 |  | | 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 bypercentage points from 1996 to 2011, and reduced risk." To read more about the study along withstocks 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 finalcandidates are listed, too. | | High Yield DowIndustrials | | One popular screen to look for high yield (but relatively stable) stocks for covered calls is to sort the Dowindustrials by dividend yield, and then look for the lowest P/E ones near the top of the The idea being that you will be buying high yield value stocks. We did this in early January to findstocks with low P/Es and high yields. Chevron (CVX) came out on top, and makes a good covered call candidate. To see the otherstocks, 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 AndOther Covered Calls For FebExpiration | | With just overweeks to go until the Feb options expire, the topcovered calls Born To Sell members have written are (in order of popularity): (Note: Born To Sell members have access to the full TopCovered Call list, as well as having thisupdate real-time as memberspositions. These are not recommendations, they are merely a reflection of our members' current positions.) | | INTC And Other Covered Call WatchStocks | | Currently, the topstocks Born To Sell members are using for their Watchare (in order of popularity): (Note: Born To Sell members have access to the full TopWatchlist, as well as having thisupdate real-time as memberstheir watchlists. And, you can have the highest yielding covered calls from your personal watchemailed to you after the close each day. Never miss a fat premium from your watchagain!) | | Want More Covered Call Goodness? | | Born To Sell is dedicated to only one thing: Making Money With Covered Calls. Our rs 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 | $95 | | Quarterly | $149.(17% discount) | | Annual | $499.(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 | |  | |
| Born To Sell Seller's Paradise
Feb 1, 2012
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 bypercentage points from 1996 to 2011, and reduced risk."
To read more about the study along withstocks to consider now, see
[2]A Triumph Of Strategy Over Hope on Barrons.com.
Links:
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:
covered call funnel
To see the rest of this funnel and how it reduces the 16,537 candidates
down to 38, please read our blog entry on [3]Using A Covered Call
Screener. Example trades for each of the finalcandidates are
listed, too.
Links:
High Yield DowIndustrials
One popular screen to look for high yield (but relatively stable)
stocks for covered calls is to sort the Dowindustrials by dividend
yield, and then look for the lowest P/E ones near the top of the
The idea being that you will be buying high yield value stocks.
We did this in early January to findstocks with low P/Es and high
yields. Chevron (CVX) came out on top, and makes a good covered call
candidate. To see the otherstocks, see our article on [4]High Yield
Stocks.
Links:
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 [5]Writing Covered Calls
For Consistent Profits.
Links:
DMND AndOther Covered Calls For FebExpiration
With just overweeks to go until the Feb options expire, the top covered calls Born To Sell members have written are (in order of
popularity):
Rank Symbol Strike
[6]DMND[7]X[8]GE[9]MSFT Links:
(Note: Born To Sell members have access to the full TopCovered Call
list, as well as having thisupdate real-time as members
positions. These are not recommendations, they are merely a reflection
of our members' current positions.)
INTC And Other Covered Call WatchStocks
Currently, the topstocks Born To Sell members are using for their
Watchare (in order of popularity):
Rank Symbol
[10]INTC
[11]MSFT
[12]AAPL
[13]T
[14]GE
[15]JNJ
[16]F
[17]BAC
Links:
(Note: Born To Sell members have access to the full TopWatchlist,
as well as having thisupdate real-time as memberstheir
watchlists. And, you can have the [18]highest yielding covered calls
from your personal watchemailed to you after the close each day.
Never miss a fat premium from your watchagain!)
Links:
Want More Covered Call Goodness?
Born To Sell is dedicated to only one thing: Making Money With Covered
Calls. Our rs 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 $ Quarterly $149.(17% discount)
Annual $499.(31% discount)
Plus, all subscriptions begin with a [19]no-obligation 2-week free
trial. What are you waiting for? [20]Start collecting premium today!
Links:
Happy Trading,
The Born To Sell Team
Follow us: [21]Facebook[22]Twitter or watch [23]demos of Covered
Call Tools (YouTube)
Links:
[24in[25][26]to
a friend
Links:
Our mailing address is: Born To Sell
399 Main Street
Los Altos, CA 94022
Copyright (c) 2012 Born To Sell. All rights reserved.
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