Summary: Born to Sell is a trading platform that specializes in covered calls. It offers long-term investors and short-term traders a way to generate extra income through selling options of already-owned securities. If you’re interested in learning more about Born to Sell and how you can make money using their platform this article is for you.
What is a Covered Call?
Whether you’re new to trading or investing in stocks or a seasoned veteran in the public markets you probably have heard about buying and selling options. A covered call is a conservative type of buy option, where you have to already own what you’re selling.
Crash Course in Options
The easiest way to think about options and covered calls is through the trading of commodities, which is something Born to Sell doesn’t allow for currently.
Call options, or buy options are an agreement in which one party buys the right to purchase something in the future at a set price. Through the lens of commodity trading, it would be Company A buying a call option from Farmer B for something like soybeans.
You might be wondering why would Company A do something like this? Well much like in most finance-related topics, it comes down to price, which is the intersection of supply and demand. Company A is likely predicting that the price of soybeans in this case is going to be much higher than it is now. So, to lock in the amount they want at the maximum price they’re willing to pay, they’ll buy a call option at a certain price.
Farmer B likes this because Company A is paying them an upfront fee, basically a deposit for their soybeans, and if the price of the beans doesn’t go above the price they’ve agreed, then that option is pure profit. If the price does exceed the agreed price then the farmer has to sell, but will still make a profit from the sale. Farmer B loses out on the potential profits from selling at the market rate, but they still make money.
This use of call options and having ownership of the good is what a Covered Call is and what Born to Sell specializes in for the public markets.
Currently, it does not allow for sales options.
How Does Born to Sell Help Me Make Money?
Born to Sell lets anyone sell call options on their existing stocks and ETFs using their platform. This allows you as a user to generate passive income through selling the right to purchase a stock or ETF you own, that you don’t think is going to climb in price in the near term. If the price does reach the agreed price also called the strike price, then you have to sell your stock or ETF if the buyer still wants it, but you’ll still be making money from the sale.
Does Born to Sell Help Choose What to Sell?
Born to Sell has a variety of tools that let you track existing covered calls and run hypotheticals based on your current portfolio. They have a massive number of features that are easy to use a lot even the earliest traders start selling options. If you’re curious about the specific features of Born to Sell there are some great Born to Sell reviews out there already.
How Does Born to Sell Make Money?
Born to Sell makes its money by charging a monthly fee for access to its information-providing software. Unlike many other platforms if you’re a member you get access to everything no matter what. The only difference between their 3 price tags is the duration for which you’re purchasing their services for
- Monthly pricing: $59.95/month
- Quarterly pricing: $149.95/month
- Annual Pricing: $499.95/month
It’s important to note that Born to Sell does also offer a 14-day free trial for full access to their platform.
How Does Born to Sell Compare to Other Platforms?
In the information around options space, there are a lot of platforms, some more credible than others. However, few if any compare to the simplicity and straightforwardness of Born to Sell.
Another well-respected platform in the space is RockWell Trading. They focus on tools for advanced traders that make this their career. If it’s something you know you want to do, you might want to read a RockWell Trading review. The summary of which is, it and other tools on the market are great if you’re interested in becoming a full-time trader or want to take uncovered bets on the markets. Not suitable if options are going to make up a small percentage of your portfolio.
Should I use Born to Sell?
Like all financial decisions, it depends on your own personal strategy and preference for trading options. If you’re looking to make a lot of money quickly it might not be a great option, but with a 14-day free trial, you can decide for yourself. If you’re looking for consistent returns and an easy-to-use platform, then check out Born to Sell because it’s a great option.