Seller's Paradise

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 4 completed weeks the 12% and 24% strategies are both on track, while the ATM and 2% OTM strategies currently have a negative YTD return. For full details and all the trades, see Apple Update For Feb 1.

We recently interviewed James Cordier, President and Head Trader at OptionSellers, to ask him about how he sells options on commodities to generate income. OptionSellers is a licensed Commodity Trading Advisor (CTA) that targets a 25% annual return from their option writing strategies.

They exceeded their goal in 2015 with a 28% return. James was kind enough to describe his strategies, as well as make a prediction for the price of oil in June/July of this year. Read all about it in our OptionSellers Interview.

Ever wonder how the big boys trade covered calls? Here's an example.

On January 20th someone bought 335,800 shares of Johnson Controls (JCI) for $34 and then sold 3,358 in-the-money April calls with a strike of 31 for $3.90 each. The total size of this order is around $10M.

Today (about 10 days later) JCI is at $35 and announced plans to do a corporate inversion merger with Tyco in Ireland (the covered call trade was put on prior to the merger announcement). There's also a 0.29 dividend in March. For a full analysis of this trade and the potential profit, see Johnson Controls Covered Call Trade.

Earlier this month Zacks Investment Research issued their 7 Best Stocks For The Next 30 Days. Shortly after that they published a list of 5 Losers From 2015 That Should Rebound. We screened their 12 recommendations for good covered call opportunities. To see the results, see our article Zacks Picks: 7 For January + 5 Losers From 2015

The Dogs Of The Dow strategy is a conservative, value, and income-oriented strategy that involves buying and holding the 10 highest yielding Dow 30 stocks. Historically, it has been a winning strategy, beating the market in several time frames.

We took the 10 highest yielding Dow 30 stocks and entered them into our covered call screener. You can see the results in our blog article Covered Dogs Of The Dow For 2016

Cantor Fitzgerald chose 6 Internet stocks they are positive on (including GOOGL), while TheStreet picked 5 different tech stocks they feel are due for a rebound given recent declines (including MSFT). We put all 11 stocks into our screener and found many in-the-money covered calls that offered double digit returns. See Tech Stocks For 2016

Jim Cramer recently screened S&P 500 stocks looking for companies selling below the market's P/E of 16 with an above-average 3.75% yield and a dividend that he thinks is not only sustainable but can grow. The result is 15 stocks he believes can be bought now. We, of course, layered on some covered calls. See Bear Market Shopping List

With about 3 weeks to go until the February 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