Income Alerts Newsletter for 03/28/2017

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 April 28 2017 are offering a 1.35% return, which annualizes at a rate of 15.37%.

Chart for QQQ

The DIA options at strike $206.00 for April 22 2017 are offering a 0.83% return, which annualizes at a rate of 11.59%.

Chart for DIA

The SPY options at strike $234.00 for April 22 2017 are offering a 1.01% return, which annualizes at a rate of 14.20%.

Chart for SPY


Technology Focus: Income Opportunities

An April covered call on BABA at strike $109.00 using 300 shares is offering an income potential of $588. In May, a strike 110.00 covered call offers $1,035 and in June, a strike 110.00 covered call offers $1,260 in premium.

The annualized return by writing covered calls in April is 25.93%, in May is 22.29% and in June is 18.00%.

Chart for BABA

An April covered call on FB at strike $141.00 using 300 shares is offering an income potential of $564. In May, a strike 145.00 covered call offers $873 and in June, a strike 145.00 covered call offers $1,095 in premium.

The annualized return by writing covered calls in April is 19.06%, in May is 14.31% and in June is 11.89%.

Chart for FB


Healthcare Focus: Income Opportunities

An April covered call on MCK at strike $150.00 using 300 shares is offering an income potential of $660. In May, a strike 150.00 covered call offers $1,530 and in August, a strike 150.00 covered call offers $2,580 in premium.

The annualized return by writing covered calls in April is 21.11%, in May is 24.04% and in August is 15.47%.

Chart for MCK

An April covered call on HCA at strike $92.00 using 300 shares is offering an income potential of $330. In May, a strike 92.50 covered call offers $195 and in June, a strike 92.50 covered call offers $795 in premium.

The annualized return by writing covered calls in April is 17.28%, in May is 4.89% and in June is 13.43%.

Chart for HCA


Consumer Staples Focus: Income Opportunities

An April covered call on PEP at strike $112.00 using 300 shares is offering an income potential of $387. In May, a strike 115.00 covered call offers $276 and in June, a strike 115.00 covered call offers $372 in premium.

The annualized return by writing covered calls in April is 16.38%, in May is 5.61% and in June is 4.99%.

Chart for PEP

An April covered call on PM at strike $113.00 using 300 shares is offering an income potential of $465. In May, a strike 115.00 covered call offers $471 and in June, a strike 115.00 covered call offers $588 in premium.

The annualized return by writing covered calls in April is 19.63%, in May is 9.58% and in June is 7.90%.

Chart for PM


Consumer Discretionary Focus: Income Opportunities

An April covered call on AMZN at strike $847.50 using 300 shares is offering an income potential of $4,080. In May, a strike 850.00 covered call offers $8,850 and in June, a strike 850.00 covered call offers $10,185 in premium.

The annualized return by writing covered calls in April is 22.91%, in May is 24.40% and in June is 18.59%.

Chart for AMZN

An April covered call on CBS at strike $67.50 using 300 shares is offering an income potential of $384. In May, a strike 67.50 covered call offers $645 and in June, a strike 67.50 covered call offers $771 in premium.

The annualized return by writing covered calls in April is 27.14%, in May is 22.24% and in June is 17.62%.

Chart for CBS


Industrials Focus: Income Opportunities

An April covered call on UTX at strike $112.00 using 300 shares is offering an income potential of $411. In May, a strike 115.00 covered call offers $321 and in June, a strike 115.00 covered call offers $477 in premium.

The annualized return by writing covered calls in April is 17.41%, in May is 6.53% and in June is 6.42%.

Chart for UTX

An April covered call on BA at strike $177.50 using 300 shares is offering an income potential of $726. In May, a strike 180.00 covered call offers $975 and in June, a strike 180.00 covered call offers $1,230 in premium.

The annualized return by writing covered calls in April is 19.56%, in May is 12.71% and in June is 10.61%.

Chart for BA


Materials Focus: Income Opportunities

An April covered call on NEM at strike $34.00 using 300 shares is offering an income potential of $324. In May, a strike 34.00 covered call offers $525 and in June, a strike 34.00 covered call offers $657 in premium.

The annualized return by writing covered calls in April is 46.18%, in May is 36.78% and in June is 30.73%.

Chart for NEM

An April covered call on HUN at strike $23.00 using 300 shares is offering an income potential of $165. In May, a strike 23.00 covered call offers $300 and in August, a strike 23.00 covered call offers $480 in premium.

The annualized return by writing covered calls in April is 34.56%, in May is 30.88% and in August is 18.92%.

Chart for HUN


Utilities Focus: Income Opportunities

An April covered call on CNP at strike $28.00 using 300 shares is offering an income potential of $90. In May, a strike 28.00 covered call offers $165 and in August, a strike 28.00 covered call offers $285 in premium.

The annualized return by writing covered calls in April is 15.38%, in May is 13.70% and in August is 8.94%.

Chart for CNP

An April covered call on D at strike $80.00 using 300 shares is offering an income potential of $105. In May, a strike 80.00 covered call offers $300 and in July, a strike 80.00 covered call offers $465 in premium.

The annualized return by writing covered calls in April is 6.33%, in May is 8.79% and in July is 6.33%.

Chart for D


Telecommunications Focus: Income Opportunities

An April covered call on VOD at strike $27.00 using 300 shares is offering an income potential of $123. In May, a strike 27.00 covered call offers $231 and in July, a strike 27.00 covered call offers $270 in premium.

The annualized return by writing covered calls in April is 21.72%, in May is 19.91% and in July is 10.79%.

Chart for VOD

An April covered call on TMUS at strike $64.50 using 300 shares is offering an income potential of $480. In May, a strike 65.00 covered call offers $885 and in August, a strike 65.00 covered call offers $1,470 in premium.

The annualized return by writing covered calls in April is 35.87%, in May is 32.54% and in August is 20.79%.

Chart for TMUS

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

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