Income Alerts Newsletter for 03/07/2017

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 31 2017 are offering a 0.00% return, which annualizes at a rate of 0.00%.

Chart for QQQ

The DIA options at strike $210.00 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 $238.00 for March 29 2017 are offering a 0.67% return, which annualizes at a rate of 10.69%.

Chart for SPY


Technology Focus: Income Opportunities

A May covered call on FB at strike $160.00 using 300 shares is offering an income potential of $138.

The annualized return by writing covered calls in May is 1.66%.

Chart for FB

A March covered call on GOOG at strike $872.50 using 300 shares is offering an income potential of $75. In April, a strike 905.00 covered call offers $390 and in May, a strike 850.00 covered call offers $5,220 in premium.

The annualized return by writing covered calls in March is 1.00%, in April is 1.25% and in May is 10.59%.

Chart for GOOG


Energy Focus: Income Opportunities

A March covered call on EOG at strike $101.00 using 300 shares is offering an income potential of $348. In April, a strike 105.00 covered call offers $411 and in July, a strike 105.00 covered call offers $1,290 in premium.

The annualized return by writing covered calls in March is 35.67%, in April is 10.78% and in July is 11.88%.

Chart for EOG


Healthcare Focus: Income Opportunities

A March covered call on MCK at strike $250.00 using 300 shares is offering an income potential of $105. In April, a strike 160.00 covered call offers $480 and in May, a strike 160.00 covered call offers $1,020 in premium.

The annualized return by writing covered calls in March is 7.75%, in April is 8.54% and in May is 11.42%.

Chart for MCK

A March covered call on HCA at strike $89.00 using 300 shares is offering an income potential of $315. In April, a strike 92.50 covered call offers $285 and in June, a strike 92.50 covered call offers $705 in premium.

The annualized return by writing covered calls in March is 40.17%, in April is 8.68% and in June is 9.84%.

Chart for HCA


Consumer Staples Focus: Income Opportunities

A June covered call on PEP at strike $120.00 using 300 shares is offering an income potential of $108.

The annualized return by writing covered calls in June is 1.18%.

Chart for PEP

A March covered call on PM at strike $112.00 using 300 shares is offering an income potential of $138.

The annualized return by writing covered calls in March is 13.97%.

Chart for PM


Consumer Discretionary Focus: Income Opportunities

A March covered call on AMZN at strike $847.50 using 300 shares is offering an income potential of $2,310. In April, a strike 850.00 covered call offers $5,055 and in May, a strike 850.00 covered call offers $10,575 in premium.

The annualized return by writing covered calls in March is 27.92%, in April is 15.77% and in May is 21.14%.

Chart for AMZN

A March covered call on CBS at strike $68.00 using 300 shares is offering an income potential of $258. In June, a strike 75.00 covered call offers $231 in premium.

The annualized return by writing covered calls in March is 42.51% and in June is 4.10%.

Chart for CBS


Financials Focus: Income Opportunities

A March covered call on MET at strike $54.00 using 300 shares is offering an income potential of $231. In April, a strike 55.00 covered call offers $366 and in May, a strike 55.00 covered call offers $546 in premium.

The annualized return by writing covered calls in March is 44.06%, in April is 17.97% and in May is 17.00%.

Chart for MET

A March covered call on WFC at strike $59.00 using 300 shares is offering an income potential of $162. In April, a strike 60.00 covered call offers $312 and in May, a strike 60.00 covered call offers $435 in premium.

The annualized return by writing covered calls in March is 28.28%, in April is 14.03% and in May is 12.35%.

Chart for WFC


Industrials Focus: Income Opportunities

A March covered call on UTX at strike $112.00 using 300 shares is offering an income potential of $273. In April, a strike 115.00 covered call offers $225 and in May, a strike 115.00 covered call offers $453 in premium.

The annualized return by writing covered calls in March is 24.99%, in April is 5.25% and in May is 6.67%.

Chart for UTX

A March covered call on BA at strike $182.50 using 300 shares is offering an income potential of $444. In April, a strike 185.00 covered call offers $879 and in May, a strike 185.00 covered call offers $1,320 in premium.

The annualized return by writing covered calls in March is 25.09%, in April is 12.78% and in May is 12.13%.

Chart for BA


Materials Focus: Income Opportunities

A May covered call on HUN at strike $23.00 using 300 shares is offering an income potential of $345.

The annualized return by writing covered calls in May is 26.73%.

Chart for HUN

A March covered call on LYB at strike $92.00 using 300 shares is offering an income potential of $390. In April, a strike 92.50 covered call offers $810 and in June, a strike 92.50 covered call offers $1,380 in premium.

The annualized return by writing covered calls in March is 43.81%, in April is 23.60% and in June is 18.75%.

Chart for LYB


Utilities Focus: Income Opportunities

A March covered call on CNP at strike $28.00 using 300 shares is offering an income potential of $75. In April, a strike 28.00 covered call offers $180 and in May, a strike 28.00 covered call offers $240 in premium.

The annualized return by writing covered calls in March is 27.44%, in April is 17.03% and in May is 14.33%.

Chart for CNP

A March covered call on D at strike $77.50 using 300 shares is offering an income potential of $90. In April, a strike 77.50 covered call offers $315 and in July, a strike 77.50 covered call offers $630 in premium.

The annualized return by writing covered calls in March is 12.02%, in April is 10.84% and in July is 7.49%.

Chart for D


Telecommunications Focus: Income Opportunities

A March covered call on VZ at strike $50.50 using 300 shares is offering an income potential of $75. In May, a strike 52.50 covered call offers $120 in premium.

The annualized return by writing covered calls in March is 15.28% and in May is 3.92%.

Chart for VZ

An April covered call on SBAC at strike $120.00 using 300 shares is offering an income potential of $420. In June, a strike 120.00 covered call offers $960 in premium.

The annualized return by writing covered calls in April is 9.56% and in June is 10.13%.

Chart for SBAC

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

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