Seller's Paradise

There are 6 companies going ex-dividend before the Oct 10 weekly expiration that offer covered call annualized returns of 46% or more when you consider the dividend income plus the call premium.

They are: FCX, GPS, NTAP, POT, T, and VZ.

None of them have earnings before the Oct 10 expiration. In our blog article we show how to use the Watchlist feature to reduce risk and find covered calls with even more downside protection for these dividend paying stocks. See Weekly Dividend Income For Oct 10 Expiration.

Alibaba (BABA) went public about 2 weeks ago. Four days prior to that we published a blog article pointing out the high prices of Yahoo call options. YHOO owns a big piece of BABA and people were expecting BABA to soar once it went public (and, hence, also expected YHOO to go up).

We had listed two sets of YHOO covered calls: (1) monthlies that expired the day of the BABA IPO, and (2) weeklys that expired one week after the IPO. YHOO closed at 40.93 on Sep 19, so all of the covered calls we listed that had a net debit of 40.93 or higher made money, which was all 5 of the in-the-money ones.

For the Sep 26 covered calls, YHOO closed at 40.66 which meant 8 of the 9 covered calls we listed (all of the in-the-money ones plus 3 of the out-of-the-money ones) for that expiration were profitable.

As with other high-risk, hype situations, the in-the-money options were the more conservative choice, and all of them made money. They had Annualized Returns of 91% to 256% for the Sep 19 expiration, and 86% to 166% for the Sep 26 expiration. See the original article at YHOO Options Before BABA IPO.

September 9th was a big day for AAPL. New phones, watch, and mobile payment system. Investing around Apple's product announcements with premium gathering strategies like covered calls has become a time honored tradition. Investors know that the hype leading up to announcement day will cause option premiums and the stock price to rise, but then they typically fall on announcement day.

How much does the stock fall? Check out the chart showing AAPL price action before and after each major product announcement since 2007. It shows that while the day of launch is typically a loser, the following day is typically a winner.

Knowing this, we published a list of 8 in-the-money covered calls that expired 3 days after the announcements. AAPL closed at 101.66 on Sep 12, making all 8 of these covered calls profitable, with Annualized Returns from 18% to 164%. Read all about it at AAPL Stock After Product Announcements.

Born To Sell's screener has special features to help find deep in-the-money covered calls. Our blog article discusses best practices when doing so. You will want to make changes to the Minimum Open Interest filter, take out Healthcare to avoid FDA risk, and make other filter changes. Learn how at Screening For Deep In The Money Covered Calls.

With less than three weeks to go until the October 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