Born To Sell Review
Born to Sell is a subscription based software service designed for options traders. The service specializes in helping options traders generate income from covered calls. Read our review to see if Born to Sell is a good fit for you.
About Born to Sell
BornToSell.com is a subscription-based software service that lets users scan for potential covered call trades to generate income. Covered calls require you to own the underlying stock and sell calls to capture the premium. It’s like collecting rent for holding stock positions. It provides some extra buffer room of protection on the downside and generates income on the upside. The concept is straightforward and there are many different strategies that users can select. Since 75% of all options expire worthless, the advantage goes to options sellers rather than buyers.
Born to Sell focuses primarily on covered options.
Covered options require that you first buy the stock then sell the rights to a call buyer for a premium. The rights enable the stock to be purchased from you at a set price, also known as the strike price. This type of trading fits swing traders and investors. It’s best suited for traders who have a portfolio and seek to generate passive income with the risk of having the shares taken from them at the selected strike price if the shares get in-the-money (ITM), meaning the price surpasses the strike price before or at the expiration date.
Born to Sell Trading Strategies
Keep in mind writing a call is the same as selling or shorting the call, but it’s covered since you already own the stock. A naked write is much riskier since you don’t own the stock yet, but are still obligated to buy the stock if it surpasses the strike price thereby risking covering by buying the stock or the call at a much higher price later. The strategies can be played naked, but that’s best suited for more seasoned traders since the downside risk potential is technically unlimited. The software features specialized search modes.
Covered Calls/Buy-Writes: Buy-writes are positions taken specifically for writing covered calls simultaneously in a single transaction. The software provides basic and advanced settings that you can use to scan through over 424,000 potential covered calls. The additional details like time premium, net debit, rate of return if flat and downside protection are intuitively and conveniently provided.
Top 10 Covered Calls: The software updates the top 10 most popular covered calls amongst users throughout the day. This feature lets you see where the immediate action is. From there you can explore other strikes and expirations within in the same chain. The earnings dates and how much downside protection you get from the trade by percentage are very helpful details that alleviate the normal legwork one would have to perform if searching manually. The convenience of this product cannot be understated.
Dividend Capture: This strategy seeks to collect both the dividend and covered call premium for the underlying stock, by executing a buy-write just before the ex-dividend date to collect the dividend and then close the trade at the near expiration date. The software provides a list of stocks with ex-dividend dates just before the chosen expiration date. It also allows users to select the minimum dividend payments and stock price range. To avert potentially extreme volatility, users can bypass ex-dividend dates that proceed too closely with earnings report dates by unchecking the “Earnings before expiration” filter.
The more you tinker with the software, the more in-depth it gets. It lets you enter in your income goals and then select the settings and it will scan for candidates automatically. I found this very convenient. You can track your covered call portfolio in real-time throughout the day. A personal calendar notifying you of upcoming ex-dividend and earnings dates for your positions is conveniently available along with a dashboard updating stats. E-mail alerts can be set for watchlist and dividend triggers.
Born to Sell Training Content
The site has quite an extensive library of tutorials and content both in regard to the covered call strategy and well as using the software (unlike services like Investopedia Academy which cover a wide range of topics).. The learning curve is quite short for anyone who has basic options trading experience. For total newbies with no options experience, the tutorials are full of examples and help simplify the whole sequence. The covered call tutorial and videos are free for review. They also offer a free two-week trial to kick the tires.
There are three recurring billing subscriptions for the service.
Monthly subscriptions are $59.95 per month. Quarterly is $149.95 billed every three months. The Annual is a pre-paid $499.95 plan, which is a 31% discount over the monthly plan.
What Type of Trader is BornToSell.com Best For?
While the concept of covered-call trading appears simple, the outcomes are not always as predictable. They work best in rising or flat markets. However, falling and bear markets can turn the strategy upside down. For this reason, users should have a solid underlying trading methodology that they can rely on to forecast potential market turns and identify trends. For this reason, the service is best suited for experienced swing traders that are efficient with options and hedging strategies to handle down markets and long-term investors with a buy and hold strategy seeking extra income without concerns for a bear market are the best suited.
Traders and investors should be well-capitalized since stocks must first be purchased to write the calls. Using overnight margin will entail more expenses so leverage must be managed carefully. A minimum account size of at least $30,000 should be considered to use the service properly.
If you are looking for a more diversified options trading strategy, check out our Motley Fool Options review.
Is Born to Sell Worth the Money?
For capitalized traders with expertise in options trading, the service is a great value. It eliminates much of the legwork involved in a covered call strategy. I especially like the additional details like downside risk, returns and ex-dividend and earnings dates. The free two-week trial gives a good idea of the value the service provides. For those with portfolios in the six-figure range, this is an excellent value providing an opportunity to earn somewhat passive income with existing stock holdings.
- Simple yet powerful real-time scans for covered call candidates
- Easy to understand settings and user configurations
- Efficient training and instructional tutorials and videos to cut learning curve
- Convenient dashboard for portfolio management of covered call strategies
- User-friendly and intuitive interface
- Covered call strategies are less effective in falling markets
- Buy-writes are capital intensive