Seller's Paradise

Recently, Oppenheimer compiled a list of 18 dividend stocks that it feels "look attractive from a valuation and potential total return perspective." In a note to clients they said "We sought out and screened for stocks that appeared to us to be stocks off their 52-week high that offer attractive dividends and have prospects, in our view, for dividend growth and capital appreciation."

As we are prone to do, we took that list of 18 stocks and layered on some covered calls. Please see our blog article: 18 Attractive Dividend Stocks.

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 11 completed weeks the 12%, 24%, ATM, and 2% OTM strategies are all doing well, with year-to-date profits between 3.3% and 6.4%. For full details and all the trades, see Apple Update For Mar 26.

Sam Gad of Gad Partners Fund published a recommendation that now is good time to buy some market insurance in the form of covered calls. His rational is that stocks have advanced a good amount in a relatively short period of time.

It may seem counter-intuitive to "buy" insurance by "selling" call options but his point is that you are protecting the most recent (and perhaps most vulnerable) part of your gain.

He suggests that covered calls are mostly appropriate for businesses that are not so undervalued that you give away significant future upside. And that you should avoid covered calls on securities with lofty valuations. Selling a call to make 5% in a month is of little value if the underlying security drops by 30%. For more of Sam's thoughts on using covered calls as insurance, please see: Buying Some Market Insurance.

Brian Bollinger is a contributor to TheStreet who has made a career out of studying dividend stocks. He believes the best dividend stocks for high income possess characteristics such as healthy payout ratios, conservative balance sheets, reliable cash flows, recession-resistant products, and a track record of consistently rewarding shareholders with dividend increases.

Recently he chose 10 of his favorites and called them his 10 Best Dividend Stocks to Own for Safe Retirement Income. Many solid names on his list that also make for good covered call writing. Please visit: 10 Best Dividend Stocks to Own for Safe Retirement Income.

With about 2 weeks to go until the April 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