Income Alerts Newsletter for 03/06/2017

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 $131.50 for April 7 2017 are offering a 0.97% return, which annualizes at a rate of 11.08%.

Chart for QQQ

The DIA options at strike $210.00 for March 31 2017 are offering a 0.87% return, which annualizes at a rate of 12.77%.

Chart for DIA


Technology Focus: Income Opportunities

A March covered call on FB at strike $138.00 using 300 shares is offering an income potential of $342. In April, a strike 140.00 covered call offers $708 and in May, a strike 140.00 covered call offers $1,380 in premium.

The annualized return by writing covered calls in March is 25.49%, in April is 13.60% and in May is 16.89%.

Chart for FB

A March covered call on GOOG at strike $830.00 using 300 shares is offering an income potential of $2,010. In April, a strike 830.00 covered call offers $5,250 and in May, a strike 830.00 covered call offers $8,010 in premium.

The annualized return by writing covered calls in March is 24.78%, in April is 16.75% and in May is 16.19%.

Chart for GOOG


Energy Focus: Income Opportunities

A March covered call on CVX at strike $114.00 using 300 shares is offering an income potential of $306. In April, a strike 115.00 covered call offers $525 and in May, a strike 115.00 covered call offers $795 in premium.

The annualized return by writing covered calls in March is 27.57%, in April is 12.16% and in May is 11.63%.

Chart for CVX


Healthcare Focus: Income Opportunities

A March covered call on ESRX at strike $72.00 using 300 shares is offering an income potential of $234. In April, a strike 72.50 covered call offers $432 and in May, a strike 72.50 covered call offers $783 in premium.

The annualized return by writing covered calls in March is 26.81%, in April is 14.99% and in May is 17.71%.

Chart for ESRX

A March covered call on GILD at strike $71.00 using 300 shares is offering an income potential of $249. In April, a strike 72.50 covered call offers $351 and in May, a strike 72.50 covered call offers $621 in premium.

The annualized return by writing covered calls in March is 28.89%, in April is 12.28% and in May is 14.11%.

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 $207. In April, a strike 115.00 covered call offers $150 and in June, a strike 115.00 covered call offers $381 in premium.

The annualized return by writing covered calls in March is 15.28%, in April is 3.32% and in June is 4.00%.

Chart for PEP

A March covered call on PM at strike $111.00 using 300 shares is offering an income potential of $234. In April, a strike 115.00 covered call offers $168 and in June, a strike 115.00 covered call offers $444 in premium.

The annualized return by writing covered calls in March is 21.68%, in April is 3.97% and in June is 4.82%.

Chart for PM


Consumer Discretionary Focus: Income Opportunities

A March covered call on AMZN at strike $850.00 using 300 shares is offering an income potential of $2,550. In April, a strike 850.00 covered call offers $6,120 and in May, a strike 850.00 covered call offers $11,145 in premium.

The annualized return by writing covered calls in March is 30.73%, in April is 19.10% and in May is 22.25%.

Chart for AMZN

A March covered call on CBS at strike $68.50 using 300 shares is offering an income potential of $132. In April, a strike 70.00 covered call offers $291 and in June, a strike 70.00 covered call offers $645 in premium.

The annualized return by writing covered calls in March is 19.74%, in April is 11.20% and in June is 11.53%.

Chart for CBS


Financials Focus: Income Opportunities

A March covered call on MET at strike $55.00 using 300 shares is offering an income potential of $231. In April, a strike 55.00 covered call offers $501 and in May, a strike 55.00 covered call offers $672 in premium.

The annualized return by writing covered calls in March is 34.66%, in April is 22.93% and in May is 19.93%.

Chart for MET

A March covered call on WFC at strike $59.00 using 300 shares is offering an income potential of $228. In April, a strike 60.00 covered call offers $369 and in May, a strike 60.00 covered call offers $495 in premium.

The annualized return by writing covered calls in March is 39.77%, in April is 16.57% and in May is 14.03%.

Chart for WFC


Industrials Focus: Income Opportunities

An April covered call on HTZ at strike $25.00 using 300 shares is offering an income potential of $225. In July, a strike 25.00 covered call offers $630 in premium.

The annualized return by writing covered calls in April is 24.31% and in July is 25.68%.

Chart for HTZ

A March covered call on UTX at strike $113.00 using 300 shares is offering an income potential of $273. In April, a strike 115.00 covered call offers $348 and in May, a strike 115.00 covered call offers $567 in premium.

The annualized return by writing covered calls in March is 19.87%, in April is 7.62% and in May is 8.01%.

Chart for UTX


Materials Focus: Income Opportunities

A March covered call on HUN at strike $23.00 using 300 shares is offering an income potential of $90. In April, a strike 23.00 covered call offers $210 and in May, a strike 23.00 covered call offers $345 in premium.

The annualized return by writing covered calls in March is 40.68%, in April is 24.68% and in May is 25.93%.

Chart for HUN

A March covered call on LYB at strike $92.50 using 300 shares is offering an income potential of $435. In April, a strike 92.50 covered call offers $900 and in June, a strike 92.50 covered call offers $1,380 in premium.

The annualized return by writing covered calls in March is 48.58%, in April is 26.11% and in June is 18.60%.

Chart for LYB


Utilities Focus: Income Opportunities

An April covered call on CNP at strike $28.00 using 300 shares is offering an income potential of $165. In May, a strike 28.00 covered call offers $240 in premium.

The annualized return by writing covered calls in April is 15.62% and in May is 14.37%.

Chart for CNP

A March covered call on D at strike $77.50 using 300 shares is offering an income potential of $135. In April, a strike 77.50 covered call offers $360 and in July, a strike 77.50 covered call offers $660 in premium.

The annualized return by writing covered calls in March is 14.39%, in April is 11.62% and in July is 7.66%.

Chart for D


Telecommunications Focus: Income Opportunities

An April covered call on T at strike $43.00 using 300 shares is offering an income potential of $93. In May, a strike 43.00 covered call offers $174 in premium.

The annualized return by writing covered calls in April is 5.77% and in May is 6.81%.

Chart for T

A March covered call on VZ at strike $50.50 using 300 shares is offering an income potential of $93. In April, a strike 52.50 covered call offers $78 and in May, a strike 52.50 covered call offers $132 in premium.

The annualized return by writing covered calls in March is 18.94%, in April is 4.05% and in May is 4.31%.

Chart for VZ

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

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