Income Alerts Newsletter for 03/08/2017

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 0.64% return, which annualizes at a rate of 9.66%.

Chart for DIA

The SPY options at strike $237.50 for March 29 2017 are offering a 0.58% return, which annualizes at a rate of 9.65%.

Chart for SPY


Technology Focus: Income Opportunities

A March covered call on QCOM at strike $57.00 using 300 shares is offering an income potential of $174. In April, a strike 57.50 covered call offers $462 and in May, a strike 57.50 covered call offers $612 in premium.

The annualized return by writing covered calls in March is 34.28%, in April is 22.14% and in May is 18.40%.

Chart for QCOM

A March covered call on GOOG at strike $832.50 using 300 shares is offering an income potential of $1,890. In April, a strike 835.00 covered call offers $4,830 and in May, a strike 835.00 covered call offers $7,530 in premium.

The annualized return by writing covered calls in March is 25.32%, in April is 15.66% and in May is 15.34%.

Chart for GOOG


Energy Focus: Income Opportunities

A March covered call on EOG at strike $106.00 using 300 shares is offering an income potential of $99. In July, a strike 135.00 covered call offers $276 in premium.

The annualized return by writing covered calls in March is 12.14% and in July is 2.50%.

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 165.00 covered call offers $135 and in May, a strike 150.00 covered call offers $2,490 in premium.

The annualized return by writing covered calls in March is 8.70%, in April is 2.49% and in May is 29.87%.

Chart for MCK

A March covered call on HCA at strike $87.00 using 300 shares is offering an income potential of $300. In April, a strike 87.50 covered call offers $630 and in June, a strike 87.50 covered call offers $1,110 in premium.

The annualized return by writing covered calls in March is 38.75%, in April is 19.71% and in June is 15.97%.

Chart for HCA


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 175.00 covered call offers $1,170 in premium.

The annualized return by writing covered calls in April is 3.37% and in July is 6.83%.

Chart for STZ

A March covered call on WBA at strike $86.00 using 300 shares is offering an income potential of $363. In June, a strike 110.00 covered call offers $72 in premium.

The annualized return by writing covered calls in March is 52.09% and in June is 1.01%.

Chart for WBA


Consumer Discretionary Focus: Income Opportunities

A March covered call on CMCSA at strike $50.00 using 300 shares is offering an income potential of $7,185. In April, a strike 50.00 covered call offers $3,345 and in May, a strike 70.00 covered call offers $2,115 in premium.

The annualized return by writing covered calls in March is 6,489.79%, in April is 344.27% and in May is 116.07%.

Chart for CMCSA

An April covered call on FOXA at strike $34.00 using 300 shares is offering an income potential of $75. In July, a strike 31.00 covered call offers $405 in premium.

The annualized return by writing covered calls in April is 6.70% and in July is 12.42%.

Chart for FOXA


Financials Focus: Income Opportunities

A May covered call on JPM at strike $105.00 using 300 shares is offering an income potential of $84.

The annualized return by writing covered calls in May is 1.54%.

Chart for JPM

A March covered call on MS at strike $46.50 using 300 shares is offering an income potential of $180. In April, a strike 47.00 covered call offers $375 and in May, a strike 47.00 covered call offers $513 in premium.

The annualized return by writing covered calls in March is 43.54%, in April is 22.00% and in May is 18.90%.

Chart for MS


Industrials Focus: Income Opportunities

A June covered call on DHR at strike $92.50 using 300 shares is offering an income potential of $165.

The annualized return by writing covered calls in June is 2.32%.

Chart for DHR

A March covered call on UTX at strike $113.00 using 300 shares is offering an income potential of $192. In April, a strike 115.00 covered call offers $261 and in May, a strike 115.00 covered call offers $492 in premium.

The annualized return by writing covered calls in March is 19.02%, in April is 6.20% and in May is 7.31%.

Chart for UTX


Materials Focus: Income Opportunities

A May covered call on HUN at strike $25.00 using 300 shares is offering an income potential of $105.

The annualized return by writing covered calls in May is 7.95%.

Chart for HUN

An April covered call on PPG at strike $105.00 using 300 shares is offering an income potential of $285. In May, a strike 105.00 covered call offers $435 in premium.

The annualized return by writing covered calls in April is 7.55% and in May is 7.20%.

Chart for PPG


Utilities Focus: Income Opportunities

A July covered call on DUK at strike $90.00 using 300 shares is offering an income potential of $90.

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

Chart for DUK

A March covered call on ED at strike $77.50 using 300 shares is offering an income potential of $105. In April, a strike 77.50 covered call offers $375 and in May, a strike 77.50 covered call offers $525 in premium.

The annualized return by writing covered calls in March is 15.22%, in April is 13.16% and in May is 11.53%.

Chart for ED


Telecommunications Focus: Income Opportunities

An April covered call on SBAC at strike $125.00 using 300 shares is offering an income potential of $150. In June, a strike 125.00 covered call offers $150 in premium.

The annualized return by writing covered calls in April is 3.53% and in June is 1.57%.

Chart for SBAC

A March covered call on TMUS at strike $66.00 using 300 shares is offering an income potential of $153. In May, a strike 72.50 covered call offers $285 in premium.

The annualized return by writing covered calls in March is 30.46% and in May is 7.83%.

Chart for TMUS

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

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