Income Alerts Newsletter for 04/06/2017

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 28 2017 are offering a 1.71% return, which annualizes at a rate of 27.15%.

Chart for QQQ

The DIA options at strike $206.50 for May 5 2017 are offering a 1.17% return, which annualizes at a rate of 14.20%.

Chart for DIA

The SPY options at strike $235.00 for April 26 2017 are offering a 0.92% return, which annualizes at a rate of 16.06%.

Chart for SPY


Technology Focus: Income Opportunities

An April covered call on PCLN at strike $1762.50 using 300 shares is offering an income potential of $5,790. In May, a strike 1765.00 covered call offers $16,980 and in June, a strike 1765.00 covered call offers $23,910 in premium.

The annualized return by writing covered calls in April is 23.78%, in May is 26.92% and in June is 23.69%.

Chart for PCLN

An April covered call on AAPL at strike $145.00 using 300 shares is offering an income potential of $369. In May, a strike 145.00 covered call offers $1,020 and in June, a strike 145.00 covered call offers $1,275 in premium.

The annualized return by writing covered calls in April is 18.49%, in May is 19.61% and in June is 15.20%.

Chart for AAPL


Energy Focus: Income Opportunities

An April covered call on EOG at strike $98.00 using 300 shares is offering an income potential of $414. In May, a strike 100.00 covered call offers $720 and in July, a strike 100.00 covered call offers $1,275 in premium.

The annualized return by writing covered calls in April is 30.80%, in May is 20.45% and in July is 15.39%.

Chart for EOG

An April covered call on CVX at strike $109.00 using 300 shares is offering an income potential of $336. In May, a strike 110.00 covered call offers $504 and in June, a strike 110.00 covered call offers $645 in premium.

The annualized return by writing covered calls in April is 22.37%, in May is 12.74% and in June is 10.09%.

Chart for CVX


Healthcare Focus: Income Opportunities

An April covered call on ESRX at strike $66.50 using 300 shares is offering an income potential of $360. In May, a strike 67.50 covered call offers $462 and in June, a strike 67.50 covered call offers $633 in premium.

The annualized return by writing covered calls in April is 39.72%, in May is 19.36% and in June is 16.49%.

Chart for ESRX

An April covered call on HCA at strike $88.50 using 300 shares is offering an income potential of $390. In May, a strike 90.00 covered call offers $570 and in June, a strike 90.00 covered call offers $810 in premium.

The annualized return by writing covered calls in April is 32.02%, in May is 17.80% and in June is 15.74%.

Chart for HCA


Consumer Staples Focus: Income Opportunities

A May covered call on KO at strike $43.00 using 300 shares is offering an income potential of $159. In June, a strike 43.00 covered call offers $210 in premium.

The annualized return by writing covered calls in May is 10.23% and in June is 8.36%.

Chart for KO

An April covered call on PEP at strike $112.00 using 300 shares is offering an income potential of $258. In May, a strike 115.00 covered call offers $210 and in June, a strike 115.00 covered call offers $297 in premium.

The annualized return by writing covered calls in April is 16.62%, in May is 5.10% and in June is 4.46%.

Chart for PEP


Consumer Discretionary Focus: Income Opportunities

An April covered call on HD at strike $147.00 using 300 shares is offering an income potential of $378. In May, a strike 150.00 covered call offers $513 and in June, a strike 150.00 covered call offers $666 in premium.

The annualized return by writing covered calls in April is 18.61%, in May is 9.57% and in June is 7.69%.

Chart for HD

An April covered call on AMZN at strike $910.00 using 300 shares is offering an income potential of $5,550. In May, a strike 910.00 covered call offers $9,945 and in June, a strike 910.00 covered call offers $11,535 in premium.

The annualized return by writing covered calls in April is 44.59%, in May is 30.69% and in June is 22.08%.

Chart for AMZN


Industrials Focus: Income Opportunities

An April covered call on UPS at strike $107.00 using 300 shares is offering an income potential of $309. In May, a strike 110.00 covered call offers $297 and in June, a strike 110.00 covered call offers $426 in premium.

The annualized return by writing covered calls in April is 20.92%, in May is 7.59% and in June is 6.74%.

Chart for UPS

An April covered call on GE at strike $30.00 using 300 shares is offering an income potential of $111. In May, a strike 30.00 covered call offers $195 and in June, a strike 30.00 covered call offers $237 in premium.

The annualized return by writing covered calls in April is 26.84%, in May is 17.98% and in June is 13.54%.

Chart for GE


Materials Focus: Income Opportunities

An April covered call on FCX at strike $13.50 using 300 shares is offering an income potential of $120. In May, a strike 14.00 covered call offers $171 and in June, a strike 14.00 covered call offers $234 in premium.

The annualized return by writing covered calls in April is 65.86%, in May is 35.92% and in June is 30.81%.

Chart for FCX

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 $240 and in August, a strike 25.00 covered call offers $480 in premium.

The annualized return by writing covered calls in April is 22.18%, in May is 27.44% and in August is 18.79%.

Chart for HUN


Utilities Focus: Income Opportunities

A May covered call on ED at strike $80.00 using 300 shares is offering an income potential of $225. In August, a strike 80.00 covered call offers $600 in premium.

The annualized return by writing covered calls in May is 7.82% and in August is 6.46%.

Chart for ED

A May covered call on NEE at strike $135.00 using 300 shares is offering an income potential of $240. In June, a strike 135.00 covered call offers $315 in premium.

The annualized return by writing covered calls in May is 5.00% and in June is 4.05%.

Chart for NEE


Telecommunications Focus: Income Opportunities

A May covered call on CTL at strike $25.00 using 300 shares is offering an income potential of $135. In July, a strike 25.00 covered call offers $165 in premium.

The annualized return by writing covered calls in May is 15.36% and in July is 7.86%.

Chart for CTL

A May covered call on VOD at strike $27.00 using 300 shares is offering an income potential of $108. In July, a strike 27.00 covered call offers $153 in premium.

The annualized return by writing covered calls in May is 11.35% and in July is 6.74%.

Chart for VOD

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

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