Income Alerts Newsletter for 03/30/2017

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 28 2017 are offering a 1.09% return, which annualizes at a rate of 13.21%.

Chart for QQQ

The DIA options at strike $207.00 for April 22 2017 are offering a 0.67% return, which annualizes at a rate of 10.24%.

Chart for DIA

The SPY options at strike $236.00 for April 22 2017 are offering a 0.80% return, which annualizes at a rate of 12.17%.

Chart for SPY


Technology Focus: Income Opportunities

An April covered call on QCOM at strike $57.50 using 300 shares is offering an income potential of $402. In May, a strike 57.50 covered call offers $561 and in June, a strike 57.50 covered call offers $633 in premium.

The annualized return by writing covered calls in April is 36.38%, in May is 23.65% and in June is 17.42%.

Chart for QCOM

An April covered call on FB at strike $143.00 using 300 shares is offering an income potential of $549. In May, a strike 145.00 covered call offers $1,065 and in June, a strike 145.00 covered call offers $1,350 in premium.

The annualized return by writing covered calls in April is 19.76%, in May is 17.91% and in June is 14.86%.

Chart for FB


Energy Focus: Income Opportunities

An April covered call on HES at strike $50.00 using 300 shares is offering an income potential of $363. In May, a strike 50.00 covered call offers $615 and in June, a strike 50.00 covered call offers $795 in premium.

The annualized return by writing covered calls in April is 37.90%, in May is 30.16% and in June is 25.66%.

Chart for HES

An April covered call on EOG at strike $97.50 using 300 shares is offering an income potential of $501. In May, a strike 97.50 covered call offers $945 and in July, a strike 97.50 covered call offers $1,575 in premium.

The annualized return by writing covered calls in April is 26.64%, in May is 23.56% and in July is 18.16%.

Chart for EOG


Healthcare Focus: Income Opportunities

An April covered call on JNJ at strike $125.00 using 300 shares is offering an income potential of $459. In May, a strike 125.00 covered call offers $690 and in June, a strike 125.00 covered call offers $765 in premium.

The annualized return by writing covered calls in April is 18.86%, in May is 13.17% and in June is 9.51%.

Chart for JNJ

An April covered call on MCK at strike $152.50 using 300 shares is offering an income potential of $600. In May, a strike 155.00 covered call offers $1,170 and in August, a strike 155.00 covered call offers $2,220 in premium.

The annualized return by writing covered calls in April is 20.37%, in May is 18.57% and in August is 13.12%.

Chart for MCK


Consumer Staples Focus: Income Opportunities

An April covered call on STZ at strike $165.00 using 300 shares is offering an income potential of $1,020. In May, a strike 165.00 covered call offers $1,410 and in July, a strike 165.00 covered call offers $2,310 in premium.

The annualized return by writing covered calls in April is 32.26%, in May is 20.75% and in July is 15.67%.

Chart for STZ

An April covered call on ADM at strike $46.50 using 300 shares is offering an income potential of $180. In May, a strike 47.00 covered call offers $306 and in June, a strike 48.00 covered call offers $225 in premium.

The annualized return by writing covered calls in April is 19.99%, in May is 15.83% and in June is 7.52%.

Chart for ADM


Consumer Discretionary Focus: Income Opportunities

An April covered call on CMCSA at strike $37.50 using 300 shares is offering an income potential of $90. In May, a strike 37.50 covered call offers $228 and in June, a strike 37.50 covered call offers $303 in premium.

The annualized return by writing covered calls in April is 12.36%, in May is 14.63% and in June is 12.73%.

Chart for CMCSA

An April covered call on FOXA at strike $32.50 using 300 shares is offering an income potential of $105. In May, a strike 33.00 covered call offers $195 and in July, a strike 33.00 covered call offers $345 in premium.

The annualized return by writing covered calls in April is 16.76%, in May is 14.50% and in July is 11.79%.

Chart for FOXA


Financials Focus: Income Opportunities

An April covered call on AXP at strike $78.50 using 300 shares is offering an income potential of $426. In May, a strike 80.00 covered call offers $393 and in June, a strike 80.00 covered call offers $531 in premium.

The annualized return by writing covered calls in April is 28.11%, in May is 11.95% and in June is 10.56%.

Chart for AXP


Industrials Focus: Income Opportunities

An April covered call on DHR at strike $87.50 using 300 shares is offering an income potential of $135. In May, a strike 87.50 covered call offers $315 and in June, a strike 87.50 covered call offers $390 in premium.

The annualized return by writing covered calls in April is 8.04%, in May is 8.71% and in June is 7.03%.

Chart for DHR

An April covered call on UTX at strike $113.00 using 300 shares is offering an income potential of $261. In May, a strike 115.00 covered call offers $297 and in June, a strike 115.00 covered call offers $438 in premium.

The annualized return by writing covered calls in April is 11.90%, in May is 6.26% and in June is 6.02%.

Chart for UTX


Materials Focus: Income Opportunities

An April covered call on CF at strike $31.00 using 300 shares is offering an income potential of $267. In May, a strike 32.50 covered call offers $309 and in August, a strike 32.50 covered call offers $618 in premium.

The annualized return by writing covered calls in April is 45.16%, in May is 24.24% and in August is 18.26%.

Chart for CF

An April covered call on HUN at strike $25.00 using 300 shares is offering an income potential of $75. In May, a strike 25.00 covered call offers $225 and in August, a strike 25.00 covered call offers $450 in premium.

The annualized return by writing covered calls in April is 15.89%, in May is 22.47% and in August is 16.88%.

Chart for HUN


Utilities Focus: Income Opportunities

A May covered call on D at strike $80.00 using 300 shares is offering an income potential of $240. In July, a strike 80.00 covered call offers $420 in premium.

The annualized return by writing covered calls in May is 7.31% and in July is 5.83%.

Chart for D

An April covered call on DUK at strike $82.50 using 300 shares is offering an income potential of $285. In May, a strike 82.50 covered call offers $480 and in July, a strike 82.50 covered call offers $660 in premium.

The annualized return by writing covered calls in April is 17.73%, in May is 13.90% and in July is 8.70%.

Chart for DUK


Telecommunications Focus: Income Opportunities

An April covered call on VOD at strike $27.00 using 300 shares is offering an income potential of $84. In May, a strike 27.00 covered call offers $189 and in July, a strike 27.00 covered call offers $234 in premium.

The annualized return by writing covered calls in April is 16.15%, in May is 17.00% and in July is 9.57%.

Chart for VOD

An April covered call on SBAC at strike $120.00 using 300 shares is offering an income potential of $540. In May, a strike 120.00 covered call offers $1,050 and in June, a strike 120.00 covered call offers $1,110 in premium.

The annualized return by writing covered calls in April is 23.20%, in May is 21.13% and in June is 14.54%.

Chart for SBAC

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

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