Income Alerts Newsletter for 02/20/2017

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 $130.00 for March 18 2017 are offering a 1.01% return, which annualizes at a rate of 14.20%.
Chart for QQQ

The DIA options at strike $206.00 for March 18 2017 are offering a 0.94% return, which annualizes at a rate of 13.15%.
Chart for DIA

The SPY options at strike $235.50 for March 24 2017 are offering a 0.93% return, which annualizes at a rate of 10.58%.
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 $219. In April, a strike 57.50 covered call offers $480 and in June, a strike 57.50 covered call offers $699 in premium.
The annualized return by writing covered calls in March is 18.39%, in April is 17.45% and in June is 13.43%.

Chart for QCOM

A March covered call on AAPL at strike $140.00 using 300 shares is offering an income potential of $255. In April, a strike 140.00 covered call offers $591 and in May, a strike 140.00 covered call offers $990 in premium.
The annualized return by writing covered calls in March is 8.85%, in April is 8.81% and in May is 10.22%.

Chart for AAPL


Healthcare Focus: Income Opportunities

A March covered call on PFE at strike $34.00 using 300 shares is offering an income potential of $102. In April, a strike 34.00 covered call offers $195 and in May, a strike 34.00 covered call offers $246 in premium.
The annualized return by writing covered calls in March is 12.86%, in April is 11.24% and in May is 9.92%.

Chart for PFE

A March covered call on ESRX at strike $70.00 using 300 shares is offering an income potential of $483. In April, a strike 70.00 covered call offers $762 and in May, a strike 70.00 covered call offers $975 in premium.
The annualized return by writing covered calls in March is 33.06%, in April is 22.54% and in May is 19.98%.

Chart for ESRX


Consumer Staples Focus: Income Opportunities

An April covered call on KO at strike $42.00 using 300 shares is offering an income potential of $114. In May, a strike 42.00 covered call offers $177 in premium.
The annualized return by writing covered calls in April is 5.57% and in May is 5.95%.

Chart for KO

A March covered call on ADM at strike $45.00 using 300 shares is offering an income potential of $204. In June, a strike 48.00 covered call offers $231 and in September, a strike 45.00 covered call offers $792 in premium.
The annualized return by writing covered calls in March is 21.69%, in June is 5.47% and in September is 11.02%.

Chart for ADM


Consumer Discretionary Focus: Income Opportunities

A March covered call on CMCSA at strike $77.50 using 300 shares is offering an income potential of $117. In April, a strike 77.50 covered call offers $285 and in May, a strike 77.50 covered call offers $477 in premium.
The annualized return by writing covered calls in March is 7.31%, in April is 7.64% and in May is 8.84%.

Chart for CMCSA

A March covered call on DG at strike $80.00 using 300 shares is offering an income potential of $510. In May, a strike 80.00 covered call offers $870 and in August, a strike 80.00 covered call offers $1,350 in premium.
The annualized return by writing covered calls in March is 31.41%, in May is 15.91% and in August is 12.47%.

Chart for DG


Financials Focus: Income Opportunities

A March covered call on BAC at strike $25.00 using 300 shares is offering an income potential of $108. In April, a strike 25.00 covered call offers $228 and in May, a strike 25.00 covered call offers $297 in premium.
The annualized return by writing covered calls in March is 20.92%, in April is 19.14% and in May is 17.26%.

Chart for BAC

A March covered call on GS at strike $255.00 using 300 shares is offering an income potential of $915. In April, a strike 255.00 covered call offers $1,950 and in June, a strike 260.00 covered call offers $2,460 in premium.
The annualized return by writing covered calls in March is 17.31%, in April is 15.95% and in June is 10.56%.

Chart for GS


Industrials Focus: Income Opportunities

An April covered call on GE at strike $31.00 using 300 shares is offering an income potential of $111. In May, a strike 31.00 covered call offers $159 in premium.
The annualized return by writing covered calls in April is 7.38% and in May is 7.28%.

Chart for GE

A March covered call on DHR at strike $85.00 using 300 shares is offering an income potential of $195. In June, a strike 87.50 covered call offers $330 and in September, a strike 85.00 covered call offers $1,140 in premium.
The annualized return by writing covered calls in March is 9.81%, in June is 4.03% and in September is 8.19%.

Chart for DHR


Materials Focus: Income Opportunities

A March covered call on HUN at strike $22.00 using 300 shares is offering an income potential of $90. In May, a strike 22.00 covered call offers $285 and in August, a strike 22.00 covered call offers $450 in premium.
The annualized return by writing covered calls in March is 17.95%, in May is 18.48% and in August is 15.08%.

Chart for HUN

A March covered call on LYB at strike $95.00 using 300 shares is offering an income potential of $300. In June, a strike 95.00 covered call offers $1,080 and in September, a strike 95.00 covered call offers $1,500 in premium.
The annualized return by writing covered calls in March is 13.69%, in June is 12.26% and in September is 9.84%.

Chart for LYB


Utilities Focus: Income Opportunities

A March covered call on D at strike $75.00 using 300 shares is offering an income potential of $105. In April, a strike 75.00 covered call offers $240 and in July, a strike 75.00 covered call offers $480 in premium.
The annualized return by writing covered calls in March is 6.69%, in April is 6.56% and in July is 5.32%.

Chart for D

A March covered call on NEE at strike $130.00 using 300 shares is offering an income potential of $105. In June, a strike 130.00 covered call offers $675 and in September, a strike 130.00 covered call offers $1,020 in premium.
The annualized return by writing covered calls in March is 3.88%, in June is 5.63% and in September is 4.83%.

Chart for NEE


Telecommunications Focus: Income Opportunities

An April covered call on VOD at strike $26.00 using 300 shares is offering an income potential of $111. In July, a strike 26.00 covered call offers $216 in premium.
The annualized return by writing covered calls in April is 8.95% and in July is 7.09%.

Chart for VOD

A March covered call on T at strike $42.00 using 300 shares is offering an income potential of $108. In April, a strike 42.00 covered call offers $180 and in May, a strike 42.00 covered call offers $246 in premium.
The annualized return by writing covered calls in March is 11.02%, in April is 8.37% and in May is 8.00%.

Chart for T

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