Income Alerts Newsletter for 03/17/2017

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 $132.50 for April 7 2017 are offering a 0.59% return, which annualizes at a rate of 9.73%.

Chart for QQQ

The DIA options at strike $210.00 for April 7 2017 are offering a 0.61% return, which annualizes at a rate of 10.12%.

Chart for DIA

The SPY options at strike $238.50 for April 7 2017 are offering a 0.62% return, which annualizes at a rate of 10.29%.

Chart for SPY


Technology Focus: Income Opportunities

An April covered call on QCOM at strike $60.00 using 300 shares is offering an income potential of $294. In May, a strike 60.00 covered call offers $444 in premium.

The annualized return by writing covered calls in April is 16.85% and in May is 14.61%.

Chart for QCOM

A March covered call on PCLN at strike $1775.00 using 300 shares is offering an income potential of $900. In April, a strike 1775.00 covered call offers $7,680 and in May, a strike 1780.00 covered call offers $16,800 in premium.

The annualized return by writing covered calls in March is 30.92%, in April is 14.44% and in May is 18.30%.

Chart for PCLN


Energy Focus: Income Opportunities

An April covered call on VLO at strike $70.00 using 300 shares is offering an income potential of $348. In June, a strike 72.50 covered call offers $474 in premium.

The annualized return by writing covered calls in April is 16.98% and in June is 9.26%.

Chart for VLO


Healthcare Focus: Income Opportunities

An April covered call on JNJ at strike $130.00 using 300 shares is offering an income potential of $366. In May, a strike 130.00 covered call offers $567 in premium.

The annualized return by writing covered calls in April is 9.46% and in May is 8.39%.

Chart for JNJ

A March covered call on MCK at strike $149.00 using 300 shares is offering an income potential of $120. In April, a strike 150.00 covered call offers $855 and in May, a strike 150.00 covered call offers $1,710 in premium.

The annualized return by writing covered calls in March is 49.18%, in April is 19.26% and in May is 22.36%.

Chart for MCK


Consumer Staples Focus: Income Opportunities

An April covered call on ADM at strike $45.00 using 300 shares is offering an income potential of $270. In June, a strike 48.00 covered call offers $195 in premium.

The annualized return by writing covered calls in April is 20.20% and in June is 5.77%.

Chart for ADM

An April covered call on KO at strike $43.00 using 300 shares is offering an income potential of $81. In May, a strike 43.00 covered call offers $171 in premium.

The annualized return by writing covered calls in April is 6.34% and in May is 7.68%.

Chart for KO


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 38.75 covered call offers $174 in premium.

The annualized return by writing covered calls in March is 31,834.49%, in April is 414.60% and in May is 8.78%.

Chart for CMCSA

An April covered call on GM at strike $38.00 using 300 shares is offering an income potential of $183. In June, a strike 38.00 covered call offers $420 in premium.

The annualized return by writing covered calls in April is 16.50% and in June is 15.40%.

Chart for GM


Financials Focus: Income Opportunities

An April covered call on MET at strike $55.00 using 300 shares is offering an income potential of $270. In May, a strike 55.00 covered call offers $429 in premium.

The annualized return by writing covered calls in April is 16.71% and in May is 15.27%.

Chart for MET

An April covered call on BAC at strike $26.00 using 300 shares is offering an income potential of $108. In May, a strike 26.00 covered call offers $189 in premium.

The annualized return by writing covered calls in April is 14.29% and in May is 14.39%.

Chart for BAC


Industrials Focus: Income Opportunities

An April covered call on UPS at strike $110.00 using 300 shares is offering an income potential of $255. In June, a strike 110.00 covered call offers $624 in premium.

The annualized return by writing covered calls in April is 7.84% and in June is 7.72%.

Chart for UPS

An April covered call on HTZ at strike $25.00 using 300 shares is offering an income potential of $120. In July, a strike 25.00 covered call offers $510 in premium.

The annualized return by writing covered calls in April is 17.57% and in July is 22.91%.

Chart for HTZ


Materials Focus: Income Opportunities

An April covered call on DOW at strike $65.00 using 300 shares is offering an income potential of $180. In June, a strike 65.00 covered call offers $474 in premium.

The annualized return by writing covered calls in April is 9.36% and in June is 9.96%.

Chart for DOW

An April covered call on HUN at strike $23.00 using 300 shares is offering an income potential of $150. In May, a strike 23.00 covered call offers $270 in premium.

The annualized return by writing covered calls in April is 22.37% and in May is 23.34%.

Chart for HUN


Utilities Focus: Income Opportunities

A March covered call on NEE at strike $130.00 using 300 shares is offering an income potential of $90. In April, a strike 130.00 covered call offers $630 and in June, a strike 130.00 covered call offers $1,050 in premium.

The annualized return by writing covered calls in March is 42.25%, in April is 16.21% and in June is 10.87%.

Chart for NEE

An April covered call on AEP at strike $67.50 using 300 shares is offering an income potential of $135. In May, a strike 67.50 covered call offers $225 in premium.

The annualized return by writing covered calls in April is 6.77% and in May is 6.45%.

Chart for AEP


Telecommunications Focus: Income Opportunities

An April covered call on VOD at strike $27.00 using 300 shares is offering an income potential of $78. In May, a strike 27.00 covered call offers $165 in premium.

The annualized return by writing covered calls in April is 9.82% and in May is 11.96%.

Chart for VOD

A May covered call on VZ at strike $52.50 using 300 shares is offering an income potential of $81.

The annualized return by writing covered calls in May is 3.05%.

Chart for VZ

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

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