Seller's Paradise

Barry Martin of Shelton Capital Management started off as a trader and evolved into a professional money manager. He has been trading covered calls for 15 years and manages $100M of covered calls today.

We talked with Barry and asked him how he uses covered calls at Shelton. Turns out there are 3 different covered call strategies he uses. Read all about them, and his top holdings, in our Shelton Capital Management Interview.

Randy Frederick, MD of Trading and Derivatives at Charles Schwab, wrote a nice piece on how to manage a portfolio of covered call investments. It clearly lays out your decision tree as option expiration day approaches, depending on whether your option is in or out of the money, and depending on your outlook for the underlying stock going forward. Lots of examples. Check out Managing Covered Calls.

In this 4 minute video Jon Najarian of optionMONSTER talks about how he uses covered calls to reduce volatility and increase income: Jon Najarian on Covered Calls (video).

If you happen to be near San Francisco on August 15, please come and listen to Born To Sell's CEO Mike Scanlin give a talk on covered call investing at the San Francisco MoneyShow.

Thousands of investors will be present for a couple of days to see and meet investment professionals and see demos of their products and services. Registration is free, and Mike's presentation starts at 2:40pm on Thursday, Aug 15.

As the Fed reigns in its bond buying spree from the last few years, interest rates are going to go up. Most investors have some portion of their portfolio in interest-rate sensitive investments like bonds, or bond ETFs. The top 9 bond ETFs (when ranked by assets) are:

Investors know that the face value of bonds will drop as interest rates rise. A good way to protect yourself is to write covered calls on your bond ETFs, as mentioned in this article: An Overlooked Way to Protect Your Fixed-Income Investments.

Horizon ETFs Management is launching 3 new covered call ETFs, in addition to the 12 existing covered call ETFs. The first is an S&P 500 Covered Call ETF (symbol HSPX) that is similar to PBP and BWV but with lower fees. The other two are a financial sector covered call ETF and energy sector covered call ETF. Read about them in our article New Covered Call ETFs.

The first 3 weeks of June was a tough time for AAPL stock. Despite Apple's Worldwide Developer's Conference, the stock dropped 40 points. We believe this is a good time to initiate new buy-write trades on AAPL and wrote about some ideas in our AAPL Trades For June article.

With 3 weeks to go until the July 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