Born To Sell Seller's Paradise 
Oct 1, 2011 
New Money Making Guide

In case you need a break from daily triple digit losses in the DJIA, our marketing department has come up with the definitive guide on how to make money in the stock market, presented in an easy step-by-step flow chart:

money making guide sample

To see the full flow chart check out our Money Making Guide (humor).

Call Premium Fortune

Albert Einstein is rumored to have said that compound interest is the greatest invention in human history. Even a relatively modest return of 1% per month can make you rich if compounded over a long enough period of time.

Covered call investing is not a get-rich-quick strategy. It is a game of patience, and it rewards the patient. You can double your money in 5.8 years if you can get 1%/month (or in only 3 years if you can get 2%/month). You can quadruple your money in as little as 11.7 years at 1%/month.

The key is to target a bit more than 1% per month (maybe 1.3%/month) so that if you miss a month or two, the other months will make up for it. We discuss this concept in our blog article on Compound Interest.

Which Expiration Date Should You Write?

Everyone knows time decay in options is non-linear. Which is why most people targeting income from selling options choose to sell near month options:

time decay in options

But there are other considerations when choosing which option to write, including volatility, downside protection, and taxes. See our blog article on Time Decay In Options.

Master Limited Partnerships

MLPs pay high dividends and offer pass-through tax deductions. As long as they are generating enough cash to cover their dividend payouts, they can make good covered call candidates since the high dividend yield acts as a natural break on price declines.

To see some example MLPs that pay over 5% dividend and have the cash flow to cover it, check out Master Limited Partnership Covered Calls.

 
T And 3 Other Covered Calls For Oct 22 Expiration

With just over 3 weeks to go until the Oct options expire, the top 4 covered calls Born To Sell members have written are (in order of popularity):

RankSymbolStrike
1.T29
2.MSFT26
3.BAC6
4.INTC23

(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.)

INTC 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.INTC
2.AAPL
3.T
4.MSFT
5.JNJ
6.BAC
7.F
8.GE

(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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