Call Selling

Born to Sell Email

2010-12-07T08:55:00.000-08:00

Hey

The account received the following monthly email from Born to Sell.

Top 4 Covered Call Stocks For Dec 18 Expiration

With only 2 weeks go to until the December options expire, the race to collect premium is on. Currently, the top 4 stocks Born To Sell members are using for their December covered calls are (in order of popularity):

Rank	Symbol	Strike
1.	F	16
2.	NFLX	170
3.	AMZN	165
4.	AAPL	310

(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.)

Top 8 Covered Call Watchlist Stocks and ETFs

Want to know what other investors are watching, waiting for the fat premiums to surface so they can jump in and write covered calls? We've got you covered. Currently, the top 8 stocks Born To Sell members are using for their Watchlist are (in order of popularity):

Rank	Symbol
1.	AAPL
2.	F
3.	MSFT
4.	SPY
5.	VZ
6.	GOOG
7.	GLD
8.	SLV

(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 again!)

37,349 December Covered Calls To Choose From

Did you know there are 37,349 different covered call possibilities for the Dec 18, 2010, expiration? That includes all combinations of underlying stock/ETF and strike price. Here's how they break down by moneyness:

Moneyness	# of CCs	Highest Yield
ITM > 20%	11666	15%
ITM 10%-19%	5031	67%
ITM 3%-9%	3918	149%
ATM +/- 2%	2788	183%
OTM 3-9%	3491	116%
OTM 10%-19%	3663	82%
OTM > 20%	6792	36%

Moneyness is the relationship between stock price and strike price. For a full explanation, see the Moneyness tutorial.

Highest Yield is highest Annualized Return If Flat from each moneyness group. For more info on these calculations, see the Covered Call Returns tutorial.

How can you possibly know which of the 37,349 choices are right for you? Don't worry, using Born To Sell's covered call screener it's easy to narrow the list down based on your personal preferences.

Want More Covered Call Goodness?

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:

Term	Price
Monthly	$59.95
Quarterly	$149.95 (17% discount)
Annual	$499.95 (31% discount)

Plus, all subscriptions begin with a no-obligation 2-week free trial. What are you waiting for? Start collecting premium today!

Don't forget: subscriptions make great holiday gifts for those hard-to-shop-for stock market fans on your list, too!

Happy Trading,

The Born To Sell Team

New Strategy used for this trade

2010-12-06T14:55:00.001-08:00

The account used a strategy for the first time on this recent close of one trade and open of another trade on the same stock.

When tracking the trade last Friday, the account noticed that the Dec $10 call on LLEN had only $0.05 of time value left. The stock at the time was priced at $12.45. When the account noticed that, it researched and found that the Jan 2011 $12.50 call was bid at $1.15.

The account acted in the following manner:

1) The account closed out the Dec $10 call by buying it back.

2) The account sold the Jan 2011 $12.50 call for $1.15.

It moved the cost basis for the trade to $ 11.04 per share. This is calculated by taking $9.79 original purchase plus $2.65 for the Dec call buy back minus $1.40 for the call premium received ($0.40 for the dec call and $1.00 for the January call).

This strategy was implemented because the account saw the high value of the Jan 2011 $12.50 call. It wanted to capitalize on it. It saw that there was a small fraction of time value left on the ask of the Dec $10 call. The account had the cash reserves to close the Dec trade. So the account acted and is now in a good position to continue moving the account value higher using the call selling strategies.

New LLEN trade !!!!

2010-12-05T12:48:00.000-08:00

The account found that L & L Energy's stock price is at $12.44. The time value on the January $12.50 call was bid at $1.15.

So the account bought back the Dec $10.00 call it owned (for a 2% profit) and sold the Jan 11 $12.50 call for $1.15.

This brings the cost basis of the LLEN stock to $10.95. This was compiled by taking the stock purchase cost $9.79 per share plus the purchase of the previous call at $2.65 minus the call revenue recieved from the Dec $10 call of $0.40 and the Jan 11 $12.50 call of $1.00. These amounts are after commissions are considered.

LLEN trade ended...in GREEN

2010-12-05T12:21:00.000-08:00

The account ended the LLEN trade with a profit of 2% in two weeks time. The account found another trade to increase its value which will be in the next post.

The account continues to be able to increase its ability to be able to capitalize on money making opportunities with the call selling area. This is the first time the account was able to buy back an option before expiration in order to go on to another trade.

LLEN 12 trading days left......Code Green!!!

2010-12-02T15:09:00.000-08:00

The stock burst past $11.00 on 3X Volume to close at $11.48! That puts the stock well past the $10.00 strike price.

The call ask time value is currently at $0.27 and is continually getting smaller......awesome.

- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.

- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!

- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.

LLEN In The Money......Green

2010-11-30T15:41:00.000-08:00

LLEN finished the day at $10.57.

The Dec $10 call bid finished at $0.90. The time value for this option's ask fell from $0.70 t0 $0.47, which is below yesterday's bid time value.

There are 13 trading days left.

LLEN trade 3 weeks left...yellow status

2010-11-29T07:32:00.000-08:00

There are three weeks left in the L & L Energy trade. The stock closed the week at $9.97. The $10 Dec call option bid closed at $0.60.

The account expects the time value for the call to fall fast this week and next.

- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.

- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!

- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.

New LLEN trade!!

2010-11-22T07:14:00.000-08:00

Today the account purchased shares of L and L Energy at a price of $9.69. The account sold the December $10.00 call for $0.55.

- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.

- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!

- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.

EDMC trade done....6% profit in 5 weeks

2010-11-20T09:37:00.000-08:00

The Education Management Corporation trade is over. The stock ended above the $10.00 strike price. So the shares were sold. The trade ended with a 6% profit over 5 weeks time.

The account is now looking for its next trade for either December or January.

- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.

- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!

- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.

Codes for call selling action

2010-11-16T15:19:00.000-08:00

Sell The Call account will be giving out color codes for where the trade is located. The colors are as follows:

Red - The stock has fallen to the stop. Sell The Call will close the trade for a loss and move on to the next trade.

Orange- This means that the trade has not produced a profit. The stock is in between the stop and the strike price but has yet to produce a profit. Also, the call time value might not have fallen enough to give the trade a profit. It could also be a combination of the two. This is an area where the account will be looking to either sell another call on the stock at expiration or close the trade for a loss and move on to the next trade.

Green - The trade is now profitable. This means that the call time value has shrunk enough to make the trade profitable, the stock has risen high enough to make the trade profitable, or a combination of the two have made the trade profitable. The account will have the ability to close the trade for a profit before expiration if desired and move on to the next trade.

3 days to end of EDMC trade

2010-11-16T15:15:00.000-08:00

Today was a decent move down. But the stock is still $4.00 over the strike price. So the account feels pretty confident about a share assignment and will be looking for a new trade.

Any ideas for stocks in the $7.00 - $12.00 range?

- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.

- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!

- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.

MBI

2010-11-15T15:14:00.000-08:00

MBIA Insurance is the leading candidate for a December call selling opportunity. The Dec 11 call is being bid at $0.70.

- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.

- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!

- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.

1 week left in EDMC trade

2010-11-12T14:26:00.000-08:00

There is one week left in the EDMC trade. The stock would have to drop $5.00 or 33% in order to get back to the strike price

The stock is at $14.64. It is $4.64 above the strike price. It will probably stay above the strike price.

The call's bid time value is sub zero. The ask time value is at $0.07.

- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.

- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!

- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.

2 Weeks in EDMC trade

2010-11-06T07:13:00.000-07:00

There are two weeks left in the Education Management Corp. trade. They released their previous quarter's earnings.

The stock has moved up to $13.37. The stock will now have to lose $3.37 in the next 10 trading days in order to get down to the strike price.

The November 10 call time value is gone as far as the bid is concerned. There is still $0.40 time value left in the ask.

- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.

- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!

- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.

EDMC up while industry down

2010-11-04T15:50:00.000-07:00

Hey

EDMC had a 10+% day today after earnings were released while the rest of the industry got hammered. This was clear with the investigation into Apollo Group. Management abilities might also be the cause for the difference.

The stock also flew past the $12.50 call strike price. That should create some support at the $12.50 level as there are call holders wanting that profit.

The trade is going well. Eleven trading days left!

Earnings release on EDMC

2010-11-04T07:15:00.000-07:00

Hey

Education Management Corporation released their quarterly earnings. They earned $0.25/share which was three cents higher than the consensus. Details are below.

The stock has gone up to the $12.75 range.

The call bid value is in the $2.80 range. The time value for the call is almost gone.

Earnings release

Solar research

2010-11-02T11:17:00.001-07:00

Hey

So in doing research for the next trade, there are a lot of solar companies in the mix.

EDMC trade 3 weeks left

2010-10-31T09:30:00.000-07:00

The trade with Education Management Corporation is going well. The call bid time value has fallen over 50% since the call was sold. The company will be announcing their earnings this week. This should create some volatility in the stock. The account noticed that the November $12.50 call has a value of $1.00. This is a bullish sign as the contract will end in three weeks and this strike price is still out of the money.

The stock closed at $12.00. The stock will have to fall 16% from this price to get below the strike price of $10.00.

- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.

- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!

- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.

Call Selling Site Born to Sell Found

2010-10-27T09:04:00.000-07:00

Hey

The account has found Born To Sell, a web site designed around selling calls. It looks like they have a top level software program. It does cost money to subscribe. There is a free trial available. It is strongly recommended that you head to the web site and trying out the free trial.

If you are familiar with the site, post your comments about it here.

Dec/Jan watch list started

2010-10-26T12:50:00.001-07:00

Hey

The account has started a watch list for December and January. The companies are below. The account currently has no relationship with any of these companies.

Company Name Symbol

Rare Element Resources REE

H & R Block HRB

Radian Group RDN

Solar Fun Power Holdings SOLF

Power One PWER

EDMC Trade

2010-10-23T12:47:00.000-07:00

Last Monday, the account purchased shares of Education Management Corporation and sold $10.00 calls against those shares.

EDMC shares were purchased for $9.96. The stock closed Friday's trading at $11.02.

The account sold the November 10 call. The time value of the bid on the call has shrunk from $0.90 to $0.50.

Call Time Value vanishing

2010-10-20T14:19:00.000-07:00

The time value of the EDMC $10.00 call bid that the account sold is now down to $0.74. That is almost a 20% drop in three days of trading. Only 22 trading days remain!

Implied Volatility for EDMC

2010-10-20T07:40:00.001-07:00

The Implied volatility for the $10.00 November call is currently at 85. That is a high level of volatility and is one of the reasons why the account chose this stock to make the trade.

EDMC being Investigated

2010-10-20T06:53:00.000-07:00

Bloomberg is reporting that the Florida AG is starting an investigation (story below) into the dealings of the for profit colleges and institutions including Education Management Corporation. The stock opened the day flat.

Florida AG Investigation

EDMC trade now In The Money

2010-10-19T15:24:00.000-07:00

The current trade in Education Management Corp. is now in the money. The stock closed today at $10.14 today.

The call value is still at $1.00. There are 31 days and 23 trading days left until expiration.

- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.

- The account does not fully divulge all information on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give out the rest of the details. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!

- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.