Income Alerts Newsletter for 03/01/2017

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 $130.50 for March 24 2017 are offering a 0.87% return, which annualizes at a rate of 13.21%.

Chart for QQQ

The DIA options at strike $208.00 for March 31 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 24 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 $56.50 using 300 shares is offering an income potential of $285. In April, a strike 57.50 covered call offers $483 and in May, a strike 60.00 covered call offers $366 in premium.

The annualized return by writing covered calls in March is 34.69%, in April is 20.21% and in May is 9.95%.

Chart for QCOM

A March covered call on GOOG at strike $825.00 using 300 shares is offering an income potential of $2,430. In April, a strike 825.00 covered call offers $5,160 and in May, a strike 825.00 covered call offers $7,890 in premium.

The annualized return by writing covered calls in March is 20.15%, in April is 14.70% and in May is 14.87%.

Chart for GOOG


Healthcare Focus: Income Opportunities

A March covered call on ESRX at strike $71.00 using 300 shares is offering an income potential of $477. In April, a strike 72.50 covered call offers $417 and in May, a strike 72.50 covered call offers $819 in premium.

The annualized return by writing covered calls in March is 46.69%, in April is 13.82% and in May is 18.11%.

Chart for ESRX

A March covered call on GILD at strike $70.50 using 300 shares is offering an income potential of $312. In April, a strike 72.50 covered call offers $357 and in May, a strike 72.50 covered call offers $657 in premium.

The annualized return by writing covered calls in March is 30.37%, in April is 11.83% and in May is 14.45%.

Chart for GILD


Consumer Staples Focus: Income Opportunities

An April covered call on STZ at strike $185.00 using 300 shares is offering an income potential of $195. In July, a strike 165.00 covered call offers $2,310 in premium.

The annualized return by writing covered calls in April is 2.88% and in July is 13.01%.

Chart for STZ

A March covered call on WBA at strike $86.50 using 300 shares is offering an income potential of $450. In April, a strike 87.50 covered call offers $708 and in June, a strike 87.50 covered call offers $1,110 in premium.

The annualized return by writing covered calls in March is 35.83%, in April is 19.34% and in June is 14.99%.

Chart for WBA


Consumer Discretionary Focus: Income Opportunities

A March covered call on AMZN at strike $847.50 using 300 shares is offering an income potential of $3,270. In April, a strike 850.00 covered call offers $6,150 and in May, a strike 850.00 covered call offers $10,815 in premium.

The annualized return by writing covered calls in March is 26.50%, in April is 17.12% and in May is 20.08%.

Chart for AMZN

A March covered call on CBS at strike $67.00 using 300 shares is offering an income potential of $216. In June, a strike 72.50 covered call offers $294 in premium.

The annualized return by writing covered calls in March is 23.71% and in June is 5.10%.

Chart for CBS


Financials Focus: Income Opportunities

A March covered call on WFC at strike $58.00 using 300 shares is offering an income potential of $285. In April, a strike 60.00 covered call offers $276 and in May, a strike 60.00 covered call offers $396 in premium.

The annualized return by writing covered calls in March is 33.84%, in April is 11.12% and in May is 10.52%.

Chart for WFC

A March covered call on AXP at strike $81.50 using 300 shares is offering an income potential of $180. In June, a strike 90.00 covered call offers $153 in premium.

The annualized return by writing covered calls in March is 16.21% and in June is 2.17%.

Chart for AXP


Industrials Focus: Income Opportunities

An April covered call on HTZ at strike $55.00 using 300 shares is offering an income potential of $345. In July, a strike 32.50 covered call offers $75 in premium.

The annualized return by writing covered calls in April is 37.42% and in July is 2.84%.

Chart for HTZ

A March covered call on UTX at strike $113.00 using 300 shares is offering an income potential of $354. In April, a strike 115.00 covered call offers $390 and in May, a strike 115.00 covered call offers $621 in premium.

The annualized return by writing covered calls in March is 21.48%, in April is 8.05% and in May is 8.44%.

Chart for UTX


Materials Focus: Income Opportunities

A March covered call on LYB at strike $91.50 using 300 shares is offering an income potential of $555. In April, a strike 92.50 covered call offers $690 and in June, a strike 92.50 covered call offers $1,080 in premium.

The annualized return by writing covered calls in March is 41.97%, in April is 17.81% and in June is 13.76%.

Chart for LYB

A March covered call on MON at strike $114.00 using 300 shares is offering an income potential of $240. In July, a strike 115.00 covered call offers $807 in premium.

The annualized return by writing covered calls in March is 15.20% and in July is 6.18%.

Chart for MON


Utilities Focus: Income Opportunities

An April covered call on DUK at strike $85.00 using 300 shares is offering an income potential of $210. In July, a strike 85.00 covered call offers $510 in premium.

The annualized return by writing covered calls in April is 5.89% and in July is 5.33%.

Chart for DUK

A May covered call on ED at strike $82.50 using 300 shares is offering an income potential of $120.

The annualized return by writing covered calls in May is 2.38%.

Chart for ED


Telecommunications Focus: Income Opportunities

A March covered call on VOD at strike $25.50 using 300 shares is offering an income potential of $102. In April, a strike 26.00 covered call offers $132 and in July, a strike 26.00 covered call offers $252 in premium.

The annualized return by writing covered calls in March is 27.50%, in April is 12.14% and in July is 8.67%.

Chart for VOD

A March covered call on SBAC at strike $120.00 using 300 shares is offering an income potential of $105. In June, a strike 120.00 covered call offers $480 and in September, a strike 120.00 covered call offers $1,410 in premium.

The annualized return by writing covered calls in March is 6.51%, in June is 4.74% and in September is 7.76%.

Chart for SBAC

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

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