Born To Sell Seller's Paradise 
Feb 1, 2015 
10 Best Stocks To Buy

InvestorPlace logoInvestorPlace.com surveyed 10 finance experts and asked each of them to pick 1 stock to buy that they believe will outperform the market in 2015. The result is their list of 10 Best Stocks To Buy For 2015. The interesting thing about this list is that it was created by 10 different financial experts, with each one recommending only 1 idea for market-beating performance.

Given their different strategies and outlooks, it's an eclectic list. And they're not shoot-from-the-hip picks; these are thoughtful recommendations from experts who will be held accountable for their choices a year from now. To see the list, and a covered call view of these 10 stocks, read 10 Best Stocks To Buy (Covered Call Version).

Downside Protection Methods

Downside Protection is when you own two or more assets that are negatively correlated to each other, so that when one goes up in value the other will go down. It's also known as a 'hedge', and is often implemented with options.

There are at least 5 ways to get downside protection: stop orders, buy an inversely related asset, short a directly related asset, buy puts, or sell calls. Our blog article compares the pros and cons of each of these strategies, and in the end shows how to use our software's Max Protection feature to find covered calls with the most downside protection possible. See Downside Protection Methods.

Raising Dividends

David Fish of Moneypaper wrote 20 Dividend Champions That Could Soon Hike Their Payouts in January. His research shows that most Champions announce dividend increases about the same time each year, typically within 2-60 days before the ex-dividend date. 90% of the time these dividend increases can be predicted.

Of course, since we like covered calls, we say that if you like any of those companies, why not buy them and write some calls to increase your income (and reduce risk) even more? Unannounced (probable) dividend increases only add to the relative safety. See David's list -- with covered calls added -- at Raising Dividends.

Mutual Funds That Use Options

The Institute For Global Asset And Risk Management (INGARM) released a new study Performance Analysis of Options-Based Equity Mutual Funds, CEFs, and ETFs. Two PhDs studied 119 funds that use options and analyzed their risk-adjusted performance. Some have used options since 1988.

The two key findings are: (1) funds that use options had higher risk-adjusted returns, and (2) the CBOE 2% OTM BuyWrite Index had higher returns and lower volatility than the S&P 500.

You can see more results, view a list of the 119 funds, and download the whole study (free) in our blog article Mutual Funds That Use Options.

AAPL Continues To Grow And Pay

After the best quarterly report in the history of the world, AAPL is now flirting again with a $700 billion market cap. Almost every week it is in the top 3 or 4 position for most popular covered calls on Born To Sell's Top 10 list.

It has piles of cash, great margins, pays a reasonable dividend (heads up: 47 cents going ex-div on Feb 5), and has weekly options that are liquid (small spreads) while offering good covered call returns. We have the Apple Watch coming out in April, the potential of Apple Pay, and the chance to sell iPhone 6's to the vast majority of iPhone users who haven't upgraded yet (not to mention a few hundred million potential new users in China and elsewhere).

Plus, for most people, it fits the fundamental requirement that it's a stock you wouldn't mind holding for the longer term. If you want to talk about AAPL trades or strategy we recommend AAPLTraders.com.

BBY And 3 Other Covered Calls For Feb 20 Expiration

With three weeks to go until the February options expire, the top 4 covered calls Born To Sell members have written are (in order of popularity):

RankSymbolStrike
1.BBY35
2.VZ49
3.HAL42.5
4.AAPL115

(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.)

AAPL And Other Covered Call Watchlist Stocks

Currently, the top 8 stocks Born To Sell members are using for their Watchlist are (in order of popularity):

RankSymbol
1.AAPL
2.MSFT
3.T
4.INTC
5.XOM
6.VZ
7.CSCO
8.CVX

(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!)

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:

TermPrice
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!

Happy Trading,

The Born To Sell Team

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