Income Alerts Newsletter for 02/10/2017

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 $127.00 for March 3 2017 are offering a 0.95% return, which annualizes at a rate of 15.83%.

Chart for QQQ

The DIA options at strike $202.00 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 $231.00 for March 1 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 GOOG at strike $810.00 using 300 shares is offering an income potential of $1,740. In March, a strike 810.00 covered call offers $4,110 and in April, a strike 810.00 covered call offers $7,080 in premium.

The annualized return by writing covered calls in February is 29.27%, in March is 16.98% and in April is 15.22%.

Chart for GOOG

A February covered call on PCLN at strike $1672.50 using 300 shares is offering an income potential of $2,190. In March, a strike 1770.00 covered call offers $1,950 and in April, a strike 1620.00 covered call offers $16,200 in premium.

The annualized return by writing covered calls in February is 20.76%, in March is 4.11% and in April is 17.82%.

Chart for PCLN


Energy Focus: Income Opportunities

A February covered call on VLO at strike $68.00 using 300 shares is offering an income potential of $150. In March, a strike 70.00 covered call offers $252 and in June, a strike 72.50 covered call offers $537 in premium.

The annualized return by writing covered calls in February is 30.21%, in March is 12.41% and in June is 7.75%.

Chart for VLO


Healthcare Focus: Income Opportunities

A March covered call on PFE at strike $33.00 using 300 shares is offering an income potential of $87. In April, a strike 33.00 covered call offers $186 in premium.

The annualized return by writing covered calls in March is 8.91% and in April is 9.90%.

Chart for PFE

A February covered call on JNJ at strike $115.00 using 300 shares is offering an income potential of $78. In March, a strike 115.00 covered call offers $228 and in April, a strike 115.00 covered call offers $486 in premium.

The annualized return by writing covered calls in February is 9.26%, in March is 6.62% and in April is 7.30%.

Chart for JNJ


Consumer Staples Focus: Income Opportunities

An April covered call on WBA at strike $82.50 using 300 shares is offering an income potential of $873.

The annualized return by writing covered calls in April is 18.56%.

Chart for WBA

A February covered call on PM at strike $103.00 using 300 shares is offering an income potential of $198. In March, a strike 105.00 covered call offers $243 and in June, a strike 105.00 covered call offers $708 in premium.

The annualized return by writing covered calls in February is 26.21%, in March is 7.84% and in June is 6.70%.

Chart for PM


Consumer Discretionary Focus: Income Opportunities

A February covered call on DG at strike $78.00 using 300 shares is offering an income potential of $255. In March, a strike 80.00 covered call offers $630 and in May, a strike 80.00 covered call offers $990 in premium.

The annualized return by writing covered calls in February is 44.85%, in March is 27.40% and in May is 16.19%.

Chart for DG

A March covered call on CMCSA at strike $77.50 using 300 shares is offering an income potential of $162.

The annualized return by writing covered calls in March is 7.15%.

Chart for CMCSA


Financials Focus: Income Opportunities

A February covered call on AXP at strike $78.50 using 300 shares is offering an income potential of $162. In March, a strike 80.00 covered call offers $261 and in April, a strike 80.00 covered call offers $561 in premium.

The annualized return by writing covered calls in February is 28.21%, in March is 11.10% and in April is 12.42%.

Chart for AXP

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 0.62%.

Chart for GS


Industrials Focus: Income Opportunities

A June covered call on DHR at strike $90.00 using 300 shares is offering an income potential of $135.

The annualized return by writing covered calls in June is 1.55%.

Chart for DHR

A February covered call on UNP at strike $108.00 using 300 shares is offering an income potential of $261. In March, a strike 110.00 covered call offers $402 and in May, a strike 110.00 covered call offers $1,065 in premium.

The annualized return by writing covered calls in February is 33.11%, in March is 12.46% and in May is 12.47%.

Chart for UNP


Materials Focus: Income Opportunities

A February covered call on HUN at strike $21.00 using 300 shares is offering an income potential of $105. In March, a strike 21.00 covered call offers $180 and in May, a strike 21.00 covered call offers $345 in premium.

The annualized return by writing covered calls in February is 70.06%, in March is 29.58% and in May is 21.57%.

Chart for HUN

A February covered call on LYB at strike $96.50 using 300 shares is offering an income potential of $180. In June, a strike 115.00 covered call offers $105 in premium.

The annualized return by writing covered calls in February is 29.87% and in June is 1.09%.

Chart for LYB


Utilities Focus: Income Opportunities

A May covered call on ED at strike $85.00 using 300 shares is offering an income potential of $75.

The annualized return by writing covered calls in May is 1.24%.

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 $510 and in June, a strike 125.00 covered call offers $1,110 in premium.

The annualized return by writing covered calls in February is 27.85%, in March is 13.64% and in June is 8.72%.

Chart for NEE


Telecommunications Focus: Income Opportunities

A June covered call on SBAC at strike $110.00 using 300 shares is offering an income potential of $990.

The annualized return by writing covered calls in June is 9.09%.

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 51.89% and in May is 4.25%.

Chart for TMUS

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

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