Seller's Paradise

Anthony Mirhaydari of InvestorPlace noted in a recent article that on Monday, the DJIA popped up and over two-month resistance near 16,500 and was challenging its 50-day moving average for the first time since December. Since last Friday, Jason Goepfert at SentimenTrader notes that S&P 500 put in three days where it never traded within 0.5% of the prior day's close. That kind of buying pressure hasn't been seen in nearly 35 years of market history.

In anticipation of a breakout above the 50-day moving average, Anthony gives 10 stocks worth buying, and we layer on covered calls. Check out: 10 Market Breakout Stocks.

During 2016 we are tracking four AAPL investment strategies that use weekly covered calls: (1) 12% annual return goal, (2) 24% annual return goal, (3) ATM, and (4) 2% OTM. Each week we sell a call option with a strike that is most closely aligned with the strategy. You can read about this plan here.

After 8 completed weeks the 12%, 24%, ATM, and 2% OTM strategies are all doing well, beating the buy-and-hold equivalent strategy by 5.9% to 9.2%. For full details and all the trades, see Apple Update For Feb 26.

As a bonus for AAPL fans, check out Charles Sizemore's article Apple Stock Is So Cheap, It's Ridiculous on InvestorPlace.

David Zanoni, a SeekingAlpha contributor, recently wrote a nice piece pointing out the pros and cons of using covered calls to generate extra income from long term positions, especially during downturns in the market.

He suggests waiting for an overbought situation (stochastic oscillator > 80), although other times can be okay, too. For full details and to read his logic, please see: Generating Extra Income For Long-Term Positions.

Another SeekingAlpha contributor, James Brender, wrote a detailed article explaining the mechanics, pros, and cons of using covered calls. For a good tutorial, including a discussion of volatility, please see: Use Covered Calls To Mitigate Downside Risk

Vale (NYSE:VALE) may not pay a dividend in 2016, and for good reasons. Many commodity prices have been dropping over the past year, including iron ore which is one of Vale's main revenue generators. Then there is the ongoing lawsuit in regards to the Samarco dam disaster that could cost Vale billions.

So with no dividend expected to be paid by Vale in 2016, how can an investor generate income from owning the stock? One SeekingAlpha author likes to write covered calls against Vale's shares. See: Vale: No Dividend, No Problem.

Philip Van Doorn, a MarketWatch contributor, recently wrote an opinion piece stating that income investors are leaving money on the table if they don't use covered calls. Hear, hear! Check it out: Leaving Money On The Table.

With about 3 weeks to go until the March 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