Income Alerts Newsletter for 01/18/2017

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 $123.00 for February 10 2017 are offering a 0.00% return, which annualizes at a rate of 0.00%.

Chart for QQQ

The DIA options at strike $198.50 for February 10 2017 are offering a 0.00% return, which annualizes at a rate of 0.00%.

Chart for DIA

The SPY options at strike $226.50 for February 8 2017 are offering a 0.00% return, which annualizes at a rate of 0.00%.

Chart for SPY


Technology Focus: Income Opportunities

A February covered call on BABA at strike $155.00 using 300 shares is offering an income potential of $96.

The annualized return by writing covered calls in February is 3.93%.

Chart for BABA

A February covered call on FB at strike $130.00 using 300 shares is offering an income potential of $1,005. In March, a strike 130.00 covered call offers $1,290 in premium.

The annualized return by writing covered calls in February is 31.68% and in March is 21.53%.

Chart for FB


Energy Focus: Income Opportunities

A January covered call on EOG at strike $113.00 using 300 shares is offering an income potential of $84. In April, a strike 125.00 covered call offers $168 in premium.

The annualized return by writing covered calls in January is 32.38% and in April is 2.07%.

Chart for EOG

A January covered call on HES at strike $92.50 using 300 shares is offering an income potential of $141.

The annualized return by writing covered calls in January is 97.20%.

Chart for HES


Healthcare Focus: Income Opportunities

A January covered call on HCA at strike $105.00 using 300 shares is offering an income potential of $150. In March, a strike 90.00 covered call offers $150 in premium.

The annualized return by writing covered calls in January is 75.64% and in March is 3.85%.

Chart for HCA

A February covered call on MCK at strike $165.00 using 300 shares is offering an income potential of $135. In March, a strike 150.00 covered call offers $1,590 in premium.

The annualized return by writing covered calls in February is 3.58% and in March is 22.91%.

Chart for MCK


Consumer Staples Focus: Income Opportunities

A March covered call on PM at strike $92.50 using 300 shares is offering an income potential of $552.

The annualized return by writing covered calls in March is 12.58%.

Chart for PM

A January covered call on STZ at strike $210.00 using 300 shares is offering an income potential of $75. In April, a strike 175.00 covered call offers $195 in premium.

The annualized return by writing covered calls in January is 19.82% and in April is 1.65%.

Chart for STZ


Consumer Discretionary Focus: Income Opportunities

A January covered call on CMCSA at strike $73.00 using 300 shares is offering an income potential of $150.

The annualized return by writing covered calls in January is 41.23%.

Chart for CMCSA

A January covered call on FOXA at strike $36.00 using 300 shares is offering an income potential of $90. In April, a strike 30.00 covered call offers $420 in premium.

The annualized return by writing covered calls in January is 123.19% and in April is 19.05%.

Chart for FOXA


Financials Focus: Income Opportunities

A January covered call on GS at strike $237.50 using 300 shares is offering an income potential of $858. In February, a strike 240.00 covered call offers $1,755 and in April, a strike 240.00 covered call offers $3,000 in premium.

The annualized return by writing covered calls in January is 112.06%, in February is 29.03% and in April is 17.02%.

Chart for GS

A January covered call on JPM at strike $84.00 using 300 shares is offering an income potential of $156. In February, a strike 85.00 covered call offers $405 and in March, a strike 85.00 covered call offers $636 in premium.

The annualized return by writing covered calls in January is 57.15%, in February is 18.73% and in March is 15.84%.

Chart for JPM


Industrials Focus: Income Opportunities

A January covered call on BA at strike $160.00 using 300 shares is offering an income potential of $96. In February, a strike 160.00 covered call offers $852 and in March, a strike 160.00 covered call offers $1,125 in premium.

The annualized return by writing covered calls in January is 18.56%, in February is 20.92% and in March is 14.82%.

Chart for BA

A January covered call on DHR at strike $92.50 using 300 shares is offering an income potential of $3,000.

The annualized return by writing covered calls in January is 1,715.79%.

Chart for DHR


Materials Focus: Income Opportunities

A May covered call on HUN at strike $22.00 using 300 shares is offering an income potential of $255.

The annualized return by writing covered calls in May is 13.45%.

Chart for HUN

A January covered call on LYB at strike $90.50 using 300 shares is offering an income potential of $180. In February, a strike 97.50 covered call offers $105 and in March, a strike 105.00 covered call offers $135 in premium.

The annualized return by writing covered calls in January is 81.68%, in February is 4.60% and in March is 3.11%.

Chart for LYB


Utilities Focus: Income Opportunities

A January covered call on DUK at strike $77.50 using 300 shares is offering an income potential of $120. In February, a strike 77.50 covered call offers $390 and in April, a strike 77.50 covered call offers $630 in premium.

The annualized return by writing covered calls in January is 47.37%, in February is 19.47% and in April is 10.71%.

Chart for DUK

A May covered call on ED at strike $82.50 using 300 shares is offering an income potential of $135.

The annualized return by writing covered calls in May is 1.82%.

Chart for ED


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 $114 and in April, a strike 27.00 covered call offers $258 in premium.

The annualized return by writing covered calls in January is 112.65%, in February is 16.76% and in April is 13.02%.

Chart for VOD

An April covered call on CTL at strike $28.00 using 300 shares is offering an income potential of $75.

The annualized return by writing covered calls in April is 3.85%.

Chart for CTL

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

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