Options trading can be a tough call, quite literally. In fact, most traders and investors keep off them due to the notion that they’re too complicated to trade. So, when we first heard of Born To Sell and how the service has been transforming the options landscape, we wanted to find out more about it. How exactly does BornToSell work? Are they as good as their salespeople might want you to believe? Keep reading to find out more.
About Born To Sell
Founded by Mike Scanlin who has been trading covered calls over the last 4 decades, Born To Sell stands out from the pack with its ability to offer a highly simplified approach to trading. Unlike other platforms that provide you with multiple strategies that often end up causing confusion, this one only uses one strategy – covered calls.
So, it would be safe to say that this company is at the heart of software innovation. They pride themselves in providing easy-to-use investment options. What’s more? Their covered calls screener is an award-winning system.
The service won the first place in 2013, 2014, and 2016 TradePlanet Star Award contests. Indeed, that goes a long way to show just how popular this service is. But how exactly does it work? We investigate.
How It Works
The covered call options trading strategy involves getting options and selling calls to capture the premium. This way, you sell your right in exchange for cash. The buyer gets the right to own that particular security even before the expiration of the strike price (a predetermined price).
But why covered calls? The first benefit of using this kind of strategy is that you’re able to generate an income without having to put up with an added market risk.
It’s also a much simpler investment options especially if you get to do it through a platform that breaks things down for you.
Generally, when trading in other instruments, you don’t want to make the mistake of selling your assets too soon all in the name of taking profits. And that’s because in such cases, you’d be exposing yourself to the regret of lost opportunities. You wouldn’t have the added benefit of a covered call premium.
So, in other words, the covered call approach such as the one offered by Born To Sell provides you with the freedom to take advantage of the two scenarios. You can take profits early on and still not regret some lost opportunity and that’s because you’ll not have offset your option positions.
In a nutshell, you market risk of stock ownership is reduced in cases of a downward movement yet you’d still benefit in case of an upside movement. A win-win situation!
What Kind Of Trading Style Is BornToSell Best Suited For?
In our view, this style of trading is best suited for swing traders. Most importantly, it’s a worthwhile strategy for anyone seeking to create a passive source of income particularly without the risk of making losses at the expiration date or if things don’t go as expected.
One thing we like about the Born To Sell Software is that it features a wide variety of search modes. And this makes it easy for you to scour the markets for fresh opportunities.
Covered Calls & Buy-Writes
The system provides you with both basic and advanced settings effectively helping you keep track of more than 424,000 potential covered calls. What’s more? Instead of jamming up your charts with all manner of tools and symbols the platform is pretty intuitive. Extra details like net debit, premium, downward protection and the rate of return are conveniently provided.
Top 10 Covered Calls
The platform has a dedicated section where the 10 most sought-after calls are listed. The good thing with this feature is that it provides you with important market intelligence and lets you know at what point you need to take immediate action. Whichever way you look at it, this tool’s convenience can never be understated.
This is an important tool for anyone wishing to collect the covered call premium along with the dividend. You simply need to execute a buy-write rule prior to the ex-dividend date. This way, you’ll be able to collect the dividend before closing the trade just before the expiration date. One thing we really like about this software is that it provides you with a clear list of stocks with their ex-dividend dates. And this enables you to choose the ideal stock price range as well.
The more you experiment with this software, the greater the details you’re bound to uncover about it. For instance, it comes with built-in tools that enable you to set your income goals. Besides that, the system is meant to help you select the settings making it easy to scan for candidates. All these features are in our view very important.
And in particular, BTS gives you the chance to track your covered call portfolio in real-time. What’s more? There’s a calendar placed intentionally to notify you about any upcoming ex-dividends. To crown it all up is a built-in email alerts system which enables you to keep track of dividend triggers as well as watch lists.
Looking for some helpful learning materials? Born To Sell provides you with lots of these especially around the topics of the covered call strategy and how to use the software. And on top of that, if you’re a greenhorn, you’ll find lots of useful tutorials here meant to help you familiarize with the topic.
You can always start using this service for free under their 2-week free trial. Once the two weeks are over, you can choose to upgrade your subscription. And in that case, there are three options.
- Monthly: This one goes for $60 lasts for 30 days.
- Quarterly: Priced at $159, lasts for 90 days.
- Annual: Goes for $500 and is valid for 1 year.
- The software is easy-to-use and intuitive
- Easy-to-adjust configurations and settings
- Awesome training and instructional tutorials
- User-friendly interface
- Great customer support
- Limits you to a handful of covered call strategies
- This investment approach can be capital-intensive
If you’re a capitalized trader, this service can be of great benefit. It helps you get the grasp of the covered call strategy and eliminates most of the spadework involved. In our view, this would be a great platform for anyone with a 6-figure portfolio.
Blake is a self-made online day trader with a knack for adventure. On his free time, he loves reading and learning new thing as well as improving his jiu-jitsu skills. He currently resides in New York City. Learn More >>