Income Alerts Newsletter for 01/17/2017

Safety First

With capital preservation as our most important priority, we begin as always with a focus on index covered calls, which mitigate company specific risk.

Writing covered calls on ETFs, such as QQQs, is attractive to conservative investors who may not have the time to monitor a selection of companies on a watchlist and wish to avoid risks associated with trading specific companies, such as earnings surprises.

The QQQ options at strike $123.50 for February 10 2017 are offering a 1.26% return, which annualizes at a rate of 19.13%.

Chart for QQQ

The DIA options at strike $199.00 for February 10 2017 are offering a 1.00% return, which annualizes at a rate of 15.23%.

Chart for DIA

The SPY options at strike $227.50 for February 8 2017 are offering a 0.90% return, which annualizes at a rate of 14.25%.

Chart for SPY


Technology Focus: Income Opportunities

A January covered call on QCOM at strike $67.00 using 300 shares is offering an income potential of $132. In February, a strike 67.50 covered call offers $540 and in March, a strike 67.50 covered call offers $642 in premium.

The annualized return by writing covered calls in January is 48.34%, in February is 30.59% and in March is 19.78%.

Chart for QCOM

A January covered call on FB at strike $129.00 using 300 shares is offering an income potential of $255. In February, a strike 130.00 covered call offers $1,110 and in March, a strike 130.00 covered call offers $1,380 in premium.

The annualized return by writing covered calls in January is 48.67%, in February is 32.83% and in March is 22.24%.

Chart for FB


Energy Focus: Income Opportunities

A January covered call on SLB at strike $85.00 using 300 shares is offering an income potential of $309. In February, a strike 85.00 covered call offers $567 and in May, a strike 85.00 covered call offers $1,170 in premium.

The annualized return by writing covered calls in January is 89.74%, in February is 25.21% and in May is 14.19%.

Chart for SLB

A January covered call on APC at strike $71.50 using 300 shares is offering an income potential of $210. In February, a strike 72.50 covered call offers $600 and in May, a strike 72.50 covered call offers $1,365 in premium.

The annualized return by writing covered calls in January is 90.55%, in February is 32.95% and in May is 20.25%.

Chart for APC


Healthcare Focus: Income Opportunities

A February covered call on PFE at strike $33.00 using 300 shares is offering an income potential of $126. In March, a strike 33.00 covered call offers $189 in premium.

The annualized return by writing covered calls in February is 14.92% and in March is 12.02%.

Chart for PFE

A January covered call on HCA at strike $79.50 using 300 shares is offering an income potential of $240. In February, a strike 80.00 covered call offers $705 and in March, a strike 80.00 covered call offers $930 in premium.

The annualized return by writing covered calls in January is 74.30%, in February is 33.73% and in March is 24.31%.

Chart for HCA


Consumer Staples Focus: Income Opportunities

A January covered call on CVS at strike $82.00 using 300 shares is offering an income potential of $162. In February, a strike 85.00 covered call offers $246 and in March, a strike 85.00 covered call offers $396 in premium.

The annualized return by writing covered calls in January is 48.40%, in February is 11.18% and in March is 9.79%.

Chart for CVS


Consumer Discretionary Focus: Income Opportunities

A January covered call on GM at strike $37.50 using 300 shares is offering an income potential of $102. In February, a strike 38.00 covered call offers $300 and in March, a strike 38.00 covered call offers $393 in premium.

The annualized return by writing covered calls in January is 67.08%, in February is 30.44% and in March is 21.76%.

Chart for GM

A January covered call on CBS at strike $62.50 using 300 shares is offering an income potential of $156. In February, a strike 62.50 covered call offers $540 and in March, a strike 62.50 covered call offers $690 in premium.

The annualized return by writing covered calls in January is 61.42%, in February is 32.90% and in March is 22.93%.

Chart for CBS


Financials Focus: Income Opportunities

A January covered call on JPM at strike $87.00 using 300 shares is offering an income potential of $195. In February, a strike 87.50 covered call offers $480 and in March, a strike 87.50 covered call offers $723 in premium.

The annualized return by writing covered calls in January is 68.93%, in February is 21.45% and in March is 17.39%.

Chart for JPM

A January covered call on MET at strike $54.50 using 300 shares is offering an income potential of $150. In February, a strike 55.00 covered call offers $423 and in March, a strike 55.00 covered call offers $558 in premium.

The annualized return by writing covered calls in January is 84.79%, in February is 30.40% and in March is 21.57%.

Chart for MET


Industrials Focus: Income Opportunities

A February covered call on GE at strike $32.00 using 300 shares is offering an income potential of $81. In March, a strike 32.00 covered call offers $117 in premium.

The annualized return by writing covered calls in February is 9.91% and in March is 7.66%.

Chart for GE

A January covered call on UNP at strike $106.00 using 300 shares is offering an income potential of $465. In February, a strike 110.00 covered call offers $351 and in May, a strike 110.00 covered call offers $975 in premium.

The annualized return by writing covered calls in January is 109.11%, in February is 12.43% and in May is 9.38%.

Chart for UNP


Materials Focus: Income Opportunities

A January covered call on PPG at strike $100.00 using 300 shares is offering an income potential of $135. In February, a strike 100.00 covered call offers $330 and in May, a strike 100.00 covered call offers $855 in premium.

The annualized return by writing covered calls in January is 42.83%, in February is 13.18% and in May is 9.05%.

Chart for PPG

A January covered call on DOW at strike $58.00 using 300 shares is offering an income potential of $102. In February, a strike 60.00 covered call offers $183 and in March, a strike 60.00 covered call offers $330 in premium.

The annualized return by writing covered calls in January is 43.20%, in February is 11.80% and in March is 11.61%.

Chart for DOW


Utilities Focus: Income Opportunities

A May covered call on AES at strike $12.00 using 300 shares is offering an income potential of $135.

The annualized return by writing covered calls in May is 11.85%.

Chart for AES

A February covered call on D at strike $77.50 using 300 shares is offering an income potential of $150. In April, a strike 77.50 covered call offers $345 in premium.

The annualized return by writing covered calls in February is 7.63% and in April is 5.97%.

Chart for D


Telecommunications Focus: Income Opportunities

A January covered call on VOD at strike $39.00 using 300 shares is offering an income potential of $96. In February, a strike 27.00 covered call offers $165 and in April, a strike 27.00 covered call offers $300 in premium.

The annualized return by writing covered calls in January is 111.41%, in February is 24.15% and in April is 15.05%.

Chart for VOD

A January covered call on SBAC at strike $115.00 using 300 shares is offering an income potential of $105. In February, a strike 110.00 covered call offers $285 and in March, a strike 110.00 covered call offers $525 in premium.

The annualized return by writing covered calls in January is 30.35%, in February is 10.36% and in March is 10.25%.

Chart for SBAC

* Prices quoted were as of time of writing and may not be current.

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