Income Alerts Newsletter for 02/17/2017

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 $129.50 for March 10 2017 are offering a 0.00% return, which annualizes at a rate of 0.00%.
Chart for QQQ

The DIA options at strike $206.00 for March 10 2017 are offering a 0.00% return, which annualizes at a rate of 0.00%.
Chart for DIA

The SPY options at strike $235.00 for March 8 2017 are offering a 0.00% return, which annualizes at a rate of 0.00%.
Chart for SPY


Technology Focus: Income Opportunities

A March covered call on QCOM at strike $57.50 using 300 shares is offering an income potential of $273. In April, a strike 57.50 covered call offers $543 in premium.
The annualized return by writing covered calls in March is 19.78% and in April is 18.46%.

Chart for QCOM

A February covered call on BABA at strike $155.00 using 300 shares is offering an income potential of $96. In April, a strike 120.00 covered call offers $90 in premium.
The annualized return by writing covered calls in February is 116.22% and in April is 1.70%.

Chart for BABA


Energy Focus: Income Opportunities

A March covered call on VLO at strike $67.50 using 300 shares is offering an income potential of $369. In June, a strike 67.50 covered call offers $990 in premium.
The annualized return by writing covered calls in March is 22.89% and in June is 15.73%.

Chart for VLO


Healthcare Focus: Income Opportunities

An April covered call on ESRX at strike $80.00 using 300 shares is offering an income potential of $75.
The annualized return by writing covered calls in April is 2.07%.

Chart for ESRX

A February covered call on MCK at strike $230.00 using 300 shares is offering an income potential of $585. In March, a strike 250.00 covered call offers $105 and in May, a strike 160.00 covered call offers $960 in premium.
The annualized return by writing covered calls in February is 482.64%, in March is 2.96% and in May is 8.68%.

Chart for MCK


Consumer Staples Focus: Income Opportunities

A February covered call on CVS at strike $79.50 using 300 shares is offering an income potential of $78. In March, a strike 80.00 covered call offers $354 and in April, a strike 80.00 covered call offers $600 in premium.
The annualized return by writing covered calls in February is 59.92%, in March is 18.34% and in April is 14.50%.

Chart for CVS

A February covered call on PM at strike $103.00 using 300 shares is offering an income potential of $84. In March, a strike 105.00 covered call offers $195 and in June, a strike 105.00 covered call offers $678 in premium.
The annualized return by writing covered calls in February is 49.75%, in March is 7.73% and in June is 6.77%.

Chart for PM


Consumer Discretionary Focus: Income Opportunities

A March covered call on DG at strike $77.50 using 300 shares is offering an income potential of $615. In May, a strike 77.50 covered call offers $960 in premium.
The annualized return by writing covered calls in March is 33.72% and in May is 17.25%.

Chart for DG

An April covered call on FOXA at strike $34.00 using 300 shares is offering an income potential of $75.
The annualized return by writing covered calls in April is 4.71%.

Chart for FOXA


Financials Focus: Income Opportunities

A March covered call on BAC at strike $25.00 using 300 shares is offering an income potential of $126. In April, a strike 25.00 covered call offers $243 in premium.
The annualized return by writing covered calls in March is 21.15% and in April is 19.14%.

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 0.66%.

Chart for GS


Industrials Focus: Income Opportunities

A March covered call on HTZ at strike $22.50 using 300 shares is offering an income potential of $375. In April, a strike 22.50 covered call offers $525 in premium.
The annualized return by writing covered calls in March is 74.51% and in April is 49.36%.

Chart for HTZ

A March covered call on DHR at strike $85.00 using 300 shares is offering an income potential of $240. In June, a strike 87.50 covered call offers $390 in premium.
The annualized return by writing covered calls in March is 11.66% and in June is 4.73%.

Chart for DHR


Materials Focus: Income Opportunities

A February covered call on LYB at strike $93.00 using 300 shares is offering an income potential of $75. In March, a strike 95.00 covered call offers $285 and in June, a strike 95.00 covered call offers $1,050 in premium.
The annualized return by writing covered calls in February is 49.36%, in March is 12.60% and in June is 11.84%.

Chart for LYB

A March covered call on NEM at strike $39.00 using 300 shares is offering an income potential of $378.
The annualized return by writing covered calls in March is 43.68%.

Chart for NEM


Utilities Focus: Income Opportunities

A June covered call on NEE at strike $130.00 using 300 shares is offering an income potential of $630.
The annualized return by writing covered calls in June is 5.10%.

Chart for NEE

A May covered call on AEP at strike $65.00 using 300 shares is offering an income potential of $315.
The annualized return by writing covered calls in May is 6.65%.

Chart for AEP


Telecommunications Focus: Income Opportunities

A March covered call on SBAC at strike $110.00 using 300 shares is offering an income potential of $750. In June, a strike 115.00 covered call offers $675 in premium.
The annualized return by writing covered calls in March is 28.58% and in June is 6.36%.

Chart for SBAC

A May covered call on TMUS at strike $65.00 using 300 shares is offering an income potential of $675.
The annualized return by writing covered calls in May is 15.30%.

Chart for TMUS

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