Income Alerts Newsletter for 03/14/2017

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 $132.00 for April 7 2017 are offering a 0.74% return, which annualizes at a rate of 10.84%.

Chart for QQQ

The DIA options at strike $209.00 for April 13 2017 are offering a 0.96% return, which annualizes at a rate of 11.26%.

Chart for DIA

The SPY options at strike $238.00 for April 5 2017 are offering a 0.62% return, which annualizes at a rate of 9.87%.

Chart for SPY


Technology Focus: Income Opportunities

A March covered call on QCOM at strike $58.50 using 300 shares is offering an income potential of $141. In April, a strike 60.00 covered call offers $327 and in May, a strike 60.00 covered call offers $495 in premium.

The annualized return by writing covered calls in March is 59.17%, in April is 17.34% and in May is 15.59%.

Chart for QCOM

A March covered call on GOOG at strike $847.50 using 300 shares is offering an income potential of $1,140. In April, a strike 850.00 covered call offers $4,110 and in May, a strike 850.00 covered call offers $7,020 in premium.

The annualized return by writing covered calls in March is 32.96%, in April is 15.03% and in May is 15.28%.

Chart for GOOG


Energy Focus: Income Opportunities

A March covered call on VLO at strike $68.00 using 300 shares is offering an income potential of $165. In April, a strike 70.00 covered call offers $309 and in June, a strike 72.50 covered call offers $465 in premium.

The annualized return by writing covered calls in March is 59.83%, in April is 14.11% and in June is 8.91%.

Chart for VLO


Healthcare Focus: Income Opportunities

A March covered call on JNJ at strike $127.00 using 300 shares is offering an income potential of $150. In April, a strike 130.00 covered call offers $249 and in May, a strike 130.00 covered call offers $411 in premium.

The annualized return by writing covered calls in March is 28.93%, in April is 6.02% and in May is 5.87%.

Chart for JNJ

An April covered call on PFE at strike $35.00 using 300 shares is offering an income potential of $81. In May, a strike 35.00 covered call offers $135 in premium.

The annualized return by writing covered calls in April is 7.28% and in May is 7.18%.

Chart for PFE


Consumer Staples Focus: Income Opportunities

A March covered call on STZ at strike $160.00 using 300 shares is offering an income potential of $210. In April, a strike 160.00 covered call offers $1,200 and in July, a strike 160.00 covered call offers $2,460 in premium.

The annualized return by writing covered calls in March is 32.41%, in April is 23.64% and in July is 15.21%.

Chart for STZ

A March covered call on WBA at strike $86.00 using 300 shares is offering an income potential of $147. In April, a strike 87.50 covered call offers $507 and in June, a strike 87.50 covered call offers $828 in premium.

The annualized return by writing covered calls in March is 42.02%, in April is 18.38% and in June is 12.67%.

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 37.50 covered call offers $165 and in May, a strike 37.50 covered call offers $297 in premium.

The annualized return by writing covered calls in March is 13,096.25%, in April is 13.66% and in May is 14.64%.

Chart for CMCSA

An April covered call on FOXA at strike $31.00 using 300 shares is offering an income potential of $165. In July, a strike 31.00 covered call offers $390 in premium.

The annualized return by writing covered calls in April is 16.76% and in July is 12.40%.

Chart for FOXA


Financials Focus: Income Opportunities

A March covered call on MET at strike $54.50 using 300 shares is offering an income potential of $102. In April, a strike 55.00 covered call offers $354 and in May, a strike 55.00 covered call offers $513 in premium.

The annualized return by writing covered calls in March is 46.12%, in April is 20.32% and in May is 17.50%.

Chart for MET

A March covered call on WFC at strike $59.00 using 300 shares is offering an income potential of $93. In April, a strike 60.00 covered call offers $264 and in May, a strike 60.00 covered call offers $399 in premium.

The annualized return by writing covered calls in March is 38.76%, in April is 13.89% and in May is 12.44%.

Chart for WFC


Industrials Focus: Income Opportunities

A March covered call on UPS at strike $108.00 using 300 shares is offering an income potential of $99. In April, a strike 110.00 covered call offers $267 and in June, a strike 110.00 covered call offers $642 in premium.

The annualized return by writing covered calls in March is 22.48%, in April is 7.62% and in June is 7.72%.

Chart for UPS

An April covered call on HTZ at strike $22.50 using 300 shares is offering an income potential of $225. In July, a strike 22.50 covered call offers $630 in premium.

The annualized return by writing covered calls in April is 33.06% and in July is 30.24%.

Chart for HTZ


Materials Focus: Income Opportunities

An April covered call on HUN at strike $23.00 using 300 shares is offering an income potential of $135. In May, a strike 23.00 covered call offers $255 in premium.

The annualized return by writing covered calls in April is 18.83% and in May is 21.31%.

Chart for HUN

An April covered call on MON at strike $115.00 using 300 shares is offering an income potential of $348. In July, a strike 115.00 covered call offers $870 in premium.

The annualized return by writing covered calls in April is 9.37% and in July is 7.26%.

Chart for MON


Utilities Focus: Income Opportunities

An April covered call on DUK at strike $82.50 using 300 shares is offering an income potential of $225. In July, a strike 82.50 covered call offers $570 in premium.

The annualized return by writing covered calls in April is 8.54% and in July is 6.70%.

Chart for DUK

An April covered call on ED at strike $77.50 using 300 shares is offering an income potential of $255. In May, a strike 77.50 covered call offers $435 in premium.

The annualized return by writing covered calls in April is 10.28% and in May is 10.40%.

Chart for ED


Telecommunications Focus: Income Opportunities

An April covered call on T at strike $43.00 using 300 shares is offering an income potential of $87. In May, a strike 43.00 covered call offers $174 in premium.

The annualized return by writing covered calls in April is 6.29% and in May is 7.45%.

Chart for T

An April covered call on VOD at strike $26.00 using 300 shares is offering an income potential of $84. In May, a strike 26.00 covered call offers $168 in premium.

The annualized return by writing covered calls in April is 10.21% and in May is 12.14%.

Chart for VOD

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

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