Income Alerts Newsletter for 02/08/2017

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 $126.50 for March 3 2017 are offering a 0.00% return, which annualizes at a rate of 0.00%.

Chart for QQQ

The DIA options at strike $201.00 for March 3 2017 are offering a 0.00% return, which annualizes at a rate of 0.00%.

Chart for DIA

The SPY options at strike $229.00 for March 1 2017 are offering a 0.82% return, which annualizes at a rate of 13.66%.

Chart for SPY


Technology Focus: Income Opportunities

A February covered call on GOOG at strike $842.50 using 300 shares is offering an income potential of $105. In March, a strike 880.00 covered call offers $105 and in April, a strike 810.00 covered call offers $7,140 in premium.

The annualized return by writing covered calls in February is 1.58%, in March is 0.42% and in April is 15.19%.

Chart for GOOG

A February covered call on PCLN at strike $1600.00 using 300 shares is offering an income potential of $4,950. In March, a strike 1600.00 covered call offers $15,840 and in April, a strike 1600.00 covered call offers $20,070 in premium.

The annualized return by writing covered calls in February is 34.60%, in March is 31.97% and in April is 21.54%.

Chart for PCLN


Energy Focus: Income Opportunities

A February covered call on HAL at strike $55.00 using 300 shares is offering an income potential of $255. In March, a strike 55.00 covered call offers $492 and in April, a strike 55.00 covered call offers $741 in premium.

The annualized return by writing covered calls in February is 52.20%, in March is 28.83% and in April is 23.25%.

Chart for HAL


Healthcare Focus: Income Opportunities

An April covered call on PFE at strike $33.00 using 300 shares is offering an income potential of $138.

The annualized return by writing covered calls in April is 7.18%.

Chart for PFE

A February covered call on GILD at strike $73.50 using 300 shares is offering an income potential of $435. In March, a strike 75.00 covered call offers $414 in premium.

The annualized return by writing covered calls in February is 73.84% and in March is 18.47%.

Chart for GILD


Consumer Staples Focus: Income Opportunities

A February covered call on KO at strike $42.00 using 300 shares is offering an income potential of $129. In March, a strike 42.00 covered call offers $189 and in April, a strike 42.00 covered call offers $249 in premium.

The annualized return by writing covered calls in February is 34.41%, in March is 14.29% and in April is 9.97%.

Chart for KO

An April covered call on PEP at strike $110.00 using 300 shares is offering an income potential of $168.

The annualized return by writing covered calls in April is 2.67%.

Chart for PEP


Consumer Discretionary Focus: Income Opportunities

An April covered call on FOXA at strike $33.00 using 300 shares is offering an income potential of $135.

The annualized return by writing covered calls in April is 7.49%.

Chart for FOXA

A February covered call on AMZN at strike $867.50 using 300 shares is offering an income potential of $249. In March, a strike 965.00 covered call offers $108 and in April, a strike 815.00 covered call offers $8,100 in premium.

The annualized return by writing covered calls in February is 3.73%, in March is 0.43% and in April is 17.19%.

Chart for AMZN


Financials Focus: Income Opportunities

A February covered call on BAC at strike $23.00 using 300 shares is offering an income potential of $93.

The annualized return by writing covered calls in February is 50.09%.

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 0.61%.

Chart for GS


Industrials Focus: Income Opportunities

A February covered call on DHR at strike $85.00 using 300 shares is offering an income potential of $75. In June, a strike 90.00 covered call offers $135 in premium.

The annualized return by writing covered calls in February is 11.02% and in June is 1.54%.

Chart for DHR

A February covered call on UNP at strike $111.00 using 300 shares is offering an income potential of $117.

The annualized return by writing covered calls in February is 13.27%.

Chart for UNP


Materials Focus: Income Opportunities

A February covered call on CF at strike $38.50 using 300 shares is offering an income potential of $105. In May, a strike 50.00 covered call offers $75 in premium.

The annualized return by writing covered calls in February is 36.99% and in May is 2.61%.

Chart for CF

A February covered call on DOW at strike $60.00 using 300 shares is offering an income potential of $171. In March, a strike 60.00 covered call offers $390 and in June, a strike 60.00 covered call offers $789 in premium.

The annualized return by writing covered calls in February is 31.94%, in March is 20.80% and in June is 12.92%.

Chart for DOW


Utilities Focus: Income Opportunities

A February covered call on ED at strike $75.00 using 300 shares is offering an income potential of $120. In March, a strike 75.00 covered call offers $315 and in May, a strike 75.00 covered call offers $615 in premium.

The annualized return by writing covered calls in February is 17.91%, in March is 13.38% and in May is 10.12%.

Chart for ED

A February covered call on NEE at strike $125.00 using 300 shares is offering an income potential of $255. In March, a strike 125.00 covered call offers $480 and in June, a strike 125.00 covered call offers $1,020 in premium.

The annualized return by writing covered calls in February is 22.84%, in March is 12.20% and in June is 7.89%.

Chart for NEE


Telecommunications Focus: Income Opportunities

A February covered call on SBAC at strike $105.00 using 300 shares is offering an income potential of $360. In March, a strike 105.00 covered call offers $645 and in June, a strike 105.00 covered call offers $1,680 in premium.

The annualized return by writing covered calls in February is 38.44%, in March is 19.60% and in June is 15.85%.

Chart for SBAC

A February covered call on TMUS at strike $64.50 using 300 shares is offering an income potential of $210. In May, a strike 75.00 covered call offers $213 in premium.

The annualized return by writing covered calls in February is 41.76% and in May is 4.19%.

Chart for TMUS

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

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