Seller's Paradise

Covered calls are not designed to make you instantly rich. But when applied consistently over a long period of time, they can give consistent returns.

One of TheStreet.com's writers shares his stats on how he made $300K over 6 years in his IRA by selling covered calls. Averaging $42k/year and only having a handful of non-income generating months. See: Selling Call Options For Income.

If you're not using limit orders to place your stock and option trades, you should be. Even with a 10 cent wide bid/ask spread, you could make 6% more in Annualized Return by using limit orders at the midpoint of the spread instead of market orders. See examples and math here: Improve Returns With Limit Orders

Not in a recession yet. But after a 10-year bull market and historically high PE ratios, it will eventually happen. When it does you'll want to know what kind of stocks are likely to suffer first, and which ones are likely to do well. A few suggestions according to Investor's Business Daily: Investing During A Recession.

Not everyone is an expert covered call investor (yet!). We all started off slow and with lots of questions. It can be quite confusing for first timers. This article covers some covered call terminology, and how the trade works (with an example): Covered Calls For Beginners.

If you're tired of the gambling news that is GME, how about a reminder about one of the best companies in the US: the #1 non-tech brand in the world... Coca-Cola.

Ok, you won't have as much fun at cocktail parties talking about your instant riches (or losses) but it is the kind of large cap, blue chip, dividend paying stock that is appropriate for most people's portfolios. Recently had an adverse tax issue (could cost them $3B) but the fight isn't over yet and even if they lose a few billion, the stock will survive (and probably recover some of the $25B that has come off it's market cap since the tax issue). Maybe this dip is an opportunity to start a position and write some conservative covered calls. See Invest in Coca-Cola.

The hard part about investing is knowing when to get out. Has the market peaked yet? The nice thing about covered calls is that you don't have to call the market top. You can use covered calls to protect recent gains without having to take the tax hit of selling the underlying shares. It's not fool proof, but it is a hedge after a run up. This article reviews 6 reasons you may want to Sell Covered Calls In A Rising Market.

Some people like to use a "poor man's covered call" where you buy a LEAP instead of shares and then short a call option. Technically, this kind of spread is called a Diagonal Spread, which is 2 options with different expiration dates and strike prices.

There are pros and cons. The chief pro is that it requires less capital than a straight covered call where you buy the shares. The negatives include that time can now be against you, and there are certain stock price patterns that do not work well for this strategy (and could be better if you owned the shares). See the arguments on both sides: LEAP Covered Writes (Diagonal Spreads).

With about 3 weeks to go until February's monthly 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.)

Currently, the top 8 stocks Born To Sell members are using for their Watchlist are (in order of popularity):

(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!)

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:

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