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Tackle 25: 2016 Edition

January 3, 2016

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The latest edition of the Tackle 25 for 2016 is being released tomorrow morning and is better than ever. While the Tackle 25 is not a long term fundamental or technical list, we certainly took those forms of analysis in mind when selecting the 25 stocks placed on Tackle Trading’s list of best covered call stocks. The Coaches at Tackle Trading believe in monthly cash flow as wealth creation is a byproduct of the compounding of the gains on monthly cash flow. We are not necessarily concerned with profit or loss as the writing of the call will offset any downward pressure in price over time.

The covered call is the financial markets version of the real estate rental agreement. Whereas in a rental agreement the investor will find a property to invest in and create monthly cash flow through renting out the property. The covered call is similar in that an investor will find a different asset class called a stock and create monthly cash flow through selling calls options against the stock that is owned.

In creating the list Tackle Trading took into account the following: PE ratios, PEG, Earnings Growth, Earnings Projections, ROE, Profit Margins, Market Cap, Volume in both the stock and options, technical trends and many other factors. However, the list is primarily a covered call list with one of the most important criteria being that of Cash Flow Expectation (CFE) which is the combination of the 12 month average dividend and the cash flow received from the selling of the call options. One last criteria is that of ROID. This is an indicator that I created for credit based trades to compared two different credits. It takes into account both the ROI on the credit in comparison to the delta which determines probability. ROID has been expanded to also include naked puts, covered calls, short strangles, and all credit spreads.

 

Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis.  This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise.  Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products.  By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials.  In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.

 

All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.

3 Replies to “Tackle 25: 2016 Edition”

  1. Thanks Matt, thanks TT Team! Can’t wait to start cashflowing with the Tackle 25.

  2. Harshal Shah says:

    there’s something going on with the audio. i hear high pitched beeps, maybe your mic is clipping.

  3. ASHISHVAIDYA says:

    I am facing the same issue mentioned by Harshal. The noise in audio is disturbing. Can you upload a corrected version of the video?

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