Income Alerts Newsletter for 03/03/2017

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 24 2017 are offering a 0.85% return, which annualizes at a rate of 14.07%.

Chart for QQQ

The DIA options at strike $210.00 for March 24 2017 are offering a 0.00% return, which annualizes at a rate of 0.00%.

Chart for DIA

The SPY options at strike $238.50 for March 22 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 GOOG at strike $832.50 using 300 shares is offering an income potential of $2,370. In April, a strike 835.00 covered call offers $5,100 and in May, a strike 835.00 covered call offers $7,530 in premium.

The annualized return by writing covered calls in March is 21.90%, in April is 14.95% and in May is 14.40%.

Chart for GOOG

A March covered call on PCLN at strike $1735.00 using 300 shares is offering an income potential of $6,390. In April, a strike 1735.00 covered call offers $12,600 and in May, a strike 1735.00 covered call offers $21,660 in premium.

The annualized return by writing covered calls in March is 28.36%, in April is 17.76% and in May is 20.07%.

Chart for PCLN


Healthcare Focus: Income Opportunities

A March covered call on ESRX at strike $72.00 using 300 shares is offering an income potential of $318. In April, a strike 72.50 covered call offers $594 and in May, a strike 72.50 covered call offers $846 in premium.

The annualized return by writing covered calls in March is 34.11%, in April is 20.25% and in May is 18.84%.

Chart for ESRX

A March covered call on GILD at strike $71.00 using 300 shares is offering an income potential of $246. In April, a strike 72.50 covered call offers $339 and in May, a strike 72.50 covered call offers $654 in premium.

The annualized return by writing covered calls in March is 26.83%, in April is 11.65% and in May is 14.74%.

Chart for GILD


Consumer Staples Focus: Income Opportunities

A March covered call on PEP at strike $111.00 using 300 shares is offering an income potential of $177. In April, a strike 115.00 covered call offers $138 and in June, a strike 115.00 covered call offers $357 in premium.

The annualized return by writing covered calls in March is 12.29%, in April is 3.00% and in June is 3.73%.

Chart for PEP

A March covered call on STZ at strike $160.00 using 300 shares is offering an income potential of $690. In April, a strike 185.00 covered call offers $195 and in July, a strike 195.00 covered call offers $360 in premium.

The annualized return by writing covered calls in March is 35.85%, in April is 3.01% and in July is 1.98%.

Chart for STZ


Consumer Discretionary Focus: Income Opportunities

A March covered call on AMZN at strike $850.00 using 300 shares is offering an income potential of $2,820. In April, a strike 850.00 covered call offers $6,240 and in May, a strike 850.00 covered call offers $11,205 in premium.

The annualized return by writing covered calls in March is 25.54%, in April is 17.98% and in May is 21.26%.

Chart for AMZN

A March covered call on CBS at strike $68.50 using 300 shares is offering an income potential of $132. In June, a strike 72.50 covered call offers $294 in premium.

The annualized return by writing covered calls in March is 16.05% and in June is 5.10%.

Chart for CBS


Financials Focus: Income Opportunities

A March covered call on MET at strike $53.50 using 300 shares is offering an income potential of $237. In April, a strike 55.00 covered call offers $279 and in May, a strike 55.00 covered call offers $444 in premium.

The annualized return by writing covered calls in March is 34.24%, in April is 12.68% and in May is 13.16%.

Chart for MET

An April covered call on BAC at strike $26.00 using 300 shares is offering an income potential of $186.

The annualized return by writing covered calls in April is 18.39%.

Chart for BAC


Industrials Focus: Income Opportunities

An April covered call on HTZ at strike $55.00 using 300 shares is offering an income potential of $345.

The annualized return by writing covered calls in April is 38.99%.

Chart for HTZ

A May covered call on UTX at strike $130.00 using 300 shares is offering an income potential of $78.

The annualized return by writing covered calls in May is 1.08%.

Chart for UTX


Materials Focus: Income Opportunities

An April covered call on HUN at strike $23.00 using 300 shares is offering an income potential of $180. In May, a strike 23.00 covered call offers $285 in premium.

The annualized return by writing covered calls in April is 19.72% and in May is 20.48%.

Chart for HUN

A March covered call on LYB at strike $93.00 using 300 shares is offering an income potential of $345.

The annualized return by writing covered calls in March is 30.70%.

Chart for LYB


Utilities Focus: Income Opportunities

A March covered call on DUK at strike $82.50 using 300 shares is offering an income potential of $240. In April, a strike 82.50 covered call offers $510 and in July, a strike 82.50 covered call offers $750 in premium.

The annualized return by writing covered calls in March is 22.38%, in April is 15.08% and in July is 8.05%.

Chart for DUK

An April covered call on NEE at strike $135.00 using 300 shares is offering an income potential of $300. In June, a strike 135.00 covered call offers $660 in premium.

The annualized return by writing covered calls in April is 5.51% and in June is 5.83%.

Chart for NEE


Telecommunications Focus: Income Opportunities

An April covered call on T at strike $43.00 using 300 shares is offering an income potential of $105. In May, a strike 43.00 covered call offers $183 in premium.

The annualized return by writing covered calls in April is 6.00% and in May is 6.80%.

Chart for T

A March covered call on SBAC at strike $120.00 using 300 shares is offering an income potential of $105. In April, a strike 120.00 covered call offers $465 and in June, a strike 120.00 covered call offers $1,050 in premium.

The annualized return by writing covered calls in March is 6.95%, in April is 9.75% and in June is 10.68%.

Chart for SBAC

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

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