Income Alerts Newsletter for 02/23/2017

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 $131.00 for March 18 2017 are offering a 0.00% return, which annualizes at a rate of 0.00%.

Chart for QQQ

The DIA options at strike $207.50 for March 18 2017 are offering a 0.00% return, which annualizes at a rate of 0.00%.

Chart for DIA

The SPY options at strike $236.50 for March 18 2017 are offering a 0.89% return, which annualizes at a rate of 13.57%.

Chart for SPY


Technology Focus: Income Opportunities

A March covered call on BABA at strike $105.00 using 300 shares is offering an income potential of $663. In April, a strike 105.00 covered call offers $1,125 and in May, a strike 105.00 covered call offers $1,605 in premium.

The annualized return by writing covered calls in March is 32.95%, in April is 23.10% and in May is 22.71%.

Chart for BABA

An April covered call on GOOG at strike $905.00 using 300 shares is offering an income potential of $390.

The annualized return by writing covered calls in April is 0.99%.

Chart for GOOG


Healthcare Focus: Income Opportunities

A March covered call on JNJ at strike $120.00 using 300 shares is offering an income potential of $192. In April, a strike 120.00 covered call offers $504 and in May, a strike 120.00 covered call offers $630 in premium.

The annualized return by writing covered calls in March is 8.19%, in April is 8.82% and in May is 7.50%.

Chart for JNJ

A March covered call on PFE at strike $34.00 using 300 shares is offering an income potential of $84. In April, a strike 34.00 covered call offers $177 and in May, a strike 34.00 covered call offers $231 in premium.

The annualized return by writing covered calls in March is 12.78%, in April is 11.06% and in May is 9.84%.

Chart for PFE


Consumer Staples Focus: Income Opportunities

A March covered call on ADM at strike $45.00 using 300 shares is offering an income potential of $195. In April, a strike 45.00 covered call offers $360 and in June, a strike 48.00 covered call offers $222 in premium.

The annualized return by writing covered calls in March is 22.43%, in April is 17.06% and in June is 5.34%.

Chart for ADM

An April covered call on KO at strike $42.00 using 300 shares is offering an income potential of $147. In May, a strike 42.00 covered call offers $213 in premium.

The annualized return by writing covered calls in April is 7.37% and in May is 7.28%.

Chart for KO


Consumer Discretionary Focus: Income Opportunities

A March covered call on GM at strike $38.00 using 300 shares is offering an income potential of $210. In April, a strike 38.00 covered call offers $357 and in June, a strike 38.00 covered call offers $534 in premium.

The annualized return by writing covered calls in March is 28.66%, in April is 20.09% and in June is 15.67%.

Chart for GM

An April covered call on HD at strike $150.00 using 300 shares is offering an income potential of $330. In May, a strike 150.00 covered call offers $606 in premium.

The annualized return by writing covered calls in April is 4.80% and in May is 5.99%.

Chart for HD


Financials Focus: Income Opportunities

A March covered call on MET at strike $53.50 using 300 shares is offering an income potential of $303. In April, a strike 55.00 covered call offers $306 and in May, a strike 55.00 covered call offers $453 in premium.

The annualized return by writing covered calls in March is 29.27%, in April is 12.03% and in May is 12.19%.

Chart for MET

An April covered call on GS at strike $340.00 using 300 shares is offering an income potential of $87. In June, a strike 320.00 covered call offers $99 in premium.

The annualized return by writing covered calls in April is 0.73% and in June is 0.42%.

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 $96. In May, a strike 31.00 covered call offers $144 in premium.

The annualized return by writing covered calls in April is 6.60% and in May is 6.75%.

Chart for GE

A March covered call on UNP at strike $109.00 using 300 shares is offering an income potential of $525. In April, a strike 110.00 covered call offers $915 and in May, a strike 110.00 covered call offers $1,170 in premium.

The annualized return by writing covered calls in March is 24.85%, in April is 17.83% and in May is 15.59%.

Chart for UNP


Materials Focus: Income Opportunities

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 57.56%.

Chart for NEM

A March covered call on LYB at strike $94.50 using 300 shares is offering an income potential of $465. In April, a strike 95.00 covered call offers $765 and in June, a strike 95.00 covered call offers $1,170 in premium.

The annualized return by writing covered calls in March is 25.50%, in April is 17.25% and in June is 13.74%.

Chart for LYB


Utilities Focus: Income Opportunities

An April covered call on D at strike $77.50 using 300 shares is offering an income potential of $165. In July, a strike 77.50 covered call offers $375 in premium.

The annualized return by writing covered calls in April is 4.55% and in July is 4.10%.

Chart for D

An April covered call on AEP at strike $67.50 using 300 shares is offering an income potential of $150. In May, a strike 67.50 covered call offers $210 in premium.

The annualized return by writing covered calls in April is 4.77% and in May is 4.55%.

Chart for AEP


Telecommunications Focus: Income Opportunities

A March covered call on VZ at strike $50.00 using 300 shares is offering an income potential of $156. In April, a strike 50.00 covered call offers $282 and in May, a strike 50.00 covered call offers $348 in premium.

The annualized return by writing covered calls in March is 16.09%, in April is 11.93% and in May is 10.03%.

Chart for VZ

An April covered call on CTL at strike $25.00 using 300 shares is offering an income potential of $135. In July, a strike 25.00 covered call offers $270 in premium.

The annualized return by writing covered calls in April is 11.42% and in July is 9.15%.

Chart for CTL

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

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