Born To Sell Seller's Paradise 
May 1, 2013 
Dividend Capture Without Earnings Risk

The dividend capture strategy is where an investor makes a short term investment prior to a stock's ex-dividend date. It is especially popular with covered call investors, who often combine it with an in-the-money option. It's not all free money, though, and there are a couple of 'gotchas' to look out for when implementing the strategy... the biggest of which is an earnings release date that occurs during the holding period. To reduce risk, check out our article Dividend Capture Without Earnings Risk.

Take Profits With Covered Calls

It's always good discipline to sell some of your winners once in a while and take some profits off the table. You don't have to sell the whole position, of course, and for the portion you do sell, it can often be a good idea to let the shares get called away rather than sell them outright. Sell some short-term in-the-money calls on the portion of your shares you were going to sell in order to get a little extra premium out of the position. See our blog article on Take Profits With Covered Calls.

AAPL Repair and New Weekly Trade

After AAPL released earnings and announced a dividend increase and larger stock buyback program, we decided to initiate a new short-term trade. The trade has a 114% annualized return that will be realized if AAPL closes above 395 on May 10.

In the same article we mention several ways that AAPL shareholders who own stock above the current price can begin to repair their position and get back to break even or better. See the blog article AAPL Repair And A New Trade.

MSFT And 3 Other Covered Calls For May 17 Expiration

With 2 and a half weeks to go until the May options expire, the top 4 covered calls Born To Sell members have written are (in order of popularity):

RankSymbolStrike
1.MSFT30
2.JCP15
3.BBRY15
4.AAPL445

(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.INTC
4.GE
5.T
6.CSCO
7.MCD
8.JNJ

(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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