Income Alerts Newsletter for 01/24/2017

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 18 2017 are offering a 0.00% return, which annualizes at a rate of 0.00%.

Chart for QQQ

The DIA options at strike $198.00 for February 18 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 15 2017 are offering a 0.89% return, which annualizes at a rate of 14.09%.

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 4.76%.
Chart for BABA

A February covered call on PCLN at strike $1555.00 using 300 shares is offering an income potential of $9,270. In March, a strike 1560.00 covered call offers $16,470 and in April, a strike 1555.00 covered call offers $17,190 in premium.

The annualized return by writing covered calls in February is 28.46%, in March is 24.74% and in April is 15.69%.
Chart for PCLN


Energy Focus: Income Opportunities

A February covered call on APC at strike $70.00 using 300 shares is offering an income potential of $588. In March, a strike 70.00 covered call offers $855 and in May, a strike 70.00 covered call offers $1,350 in premium.

The annualized return by writing covered calls in February is 40.52%, in March is 28.75% and in May is 21.48%.
Chart for APC

A February covered call on VLO at strike $66.50 using 300 shares is offering an income potential of $471. In March, a strike 67.50 covered call offers $543 and in June, a strike 67.50 covered call offers $1,065 in premium.

The annualized return by writing covered calls in February is 34.08%, in March is 18.99% and in June is 14.25%.
Chart for VLO


Healthcare Focus: Income Opportunities

A February covered call on HCA at strike $85.00 using 300 shares is offering an income potential of $165. In March, a strike 87.50 covered call offers $180 and in June, a strike 90.00 covered call offers $480 in premium.

The annualized return by writing covered calls in February is 10.13%, in March is 5.21% and in June is 5.18%.
Chart for HCA

A February covered call on MCK at strike $150.00 using 300 shares is offering an income potential of $1,380. In March, a strike 150.00 covered call offers $1,950 and in May, a strike 150.00 covered call offers $2,760 in premium.

The annualized return by writing covered calls in February is 44.62%, in March is 30.76% and in May is 20.48%.
Chart for MCK


Consumer Staples Focus: Income Opportunities

A February covered call on PEP at strike $105.00 using 300 shares is offering an income potential of $288. In April, a strike 105.00 covered call offers $576 and in June, a strike 105.00 covered call offers $813 in premium.

The annualized return by writing covered calls in February is 13.08%, in April is 7.71% and in June is 6.73%.
Chart for PEP

A February covered call on PG at strike $87.00 using 300 shares is offering an income potential of $279. In March, a strike 87.50 covered call offers $366 and in April, a strike 87.50 covered call offers $498 in premium.

The annualized return by writing covered calls in February is 15.18%, in March is 9.62% and in April is 7.98%.
Chart for PG


Consumer Discretionary Focus: Income Opportunities

A February covered call on CMCSA at strike $75.00 using 300 shares is offering an income potential of $216. In April, a strike 75.00 covered call offers $495 and in June, a strike 75.00 covered call offers $795 in premium.

The annualized return by writing covered calls in February is 13.93%, in April is 9.45% and in June is 9.45%.
Chart for CMCSA

A February covered call on FOXA at strike $31.00 using 300 shares is offering an income potential of $120. In April, a strike 31.00 covered call offers $240 and in July, a strike 31.00 covered call offers $435 in premium.

The annualized return by writing covered calls in February is 18.97%, in April is 11.24% and in July is 10.30%.
Chart for FOXA


Financials Focus: Income Opportunities

A February covered call on BAC at strike $23.00 using 300 shares is offering an income potential of $105. In March, a strike 23.00 covered call offers $183 and in April, a strike 23.00 covered call offers $267 in premium.

The annualized return by writing covered calls in February is 22.12%, in March is 18.78% and in April is 16.84%.
Chart for BAC

An April covered call on GS at strike $340.00 using 300 shares is offering an income potential of $87.

The annualized return by writing covered calls in April is 0.52%.
Chart for GS


Industrials Focus: Income Opportunities

A March covered call on DHR at strike $85.00 using 300 shares is offering an income potential of $105. In June, a strike 82.50 covered call offers $675 in premium.

The annualized return by writing covered calls in March is 3.03% and in June is 7.34%.
Chart for DHR

A May covered call on UNP at strike $125.00 using 300 shares is offering an income potential of $180.

The annualized return by writing covered calls in May is 1.76%.
Chart for UNP


Materials Focus: Income Opportunities

A May covered call on PPG at strike $110.00 using 300 shares is offering an income potential of $165.

The annualized return by writing covered calls in May is 1.74%.
Chart for PPG

A May covered call on HUN at strike $24.00 using 300 shares is offering an income potential of $75. In August, a strike 23.00 covered call offers $300 in premium.

The annualized return by writing covered calls in May is 3.95% and in August is 9.21%.
Chart for HUN


Utilities Focus: Income Opportunities

A May covered call on ED at strike $82.50 using 300 shares is offering an income potential of $75.

The annualized return by writing covered calls in May is 1.08%.
Chart for ED

A March covered call on NEE at strike $145.00 using 300 shares is offering an income potential of $120. In June, a strike 145.00 covered call offers $180 in premium.

The annualized return by writing covered calls in March is 2.33% and in June is 1.29%.
Chart for NEE


Telecommunications Focus: Income Opportunities

A February covered call on VOD at strike $26.00 using 300 shares is offering an income potential of $168. In April, a strike 26.00 covered call offers $318 and in July, a strike 26.00 covered call offers $402 in premium.

The annualized return by writing covered calls in February is 30.99%, in April is 17.48% and in July is 11.05%.
Chart for VOD

A March covered call on LVLT at strike $60.00 using 300 shares is offering an income potential of $465. In June, a strike 65.00 covered call offers $270 in premium.

The annualized return by writing covered calls in March is 18.51% and in June is 3.91%.
Chart for LVLT

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

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