Income Alerts Newsletter for 04/07/2017

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 0.95% return, which annualizes at a rate of 15.73%.

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 14.68%.

Chart for DIA

The SPY options at strike $235.50 for April 28 2017 are offering a 1.00% return, which annualizes at a rate of 16.65%.

Chart for SPY


Technology Focus: Income Opportunities

An April covered call on PCLN at strike $1775.00 using 300 shares is offering an income potential of $5,100. In May, a strike 1775.00 covered call offers $16,890 and in June, a strike 1775.00 covered call offers $20,670 in premium.

The annualized return by writing covered calls in April is 22.08%, in May is 27.20% and in June is 20.49%.

Chart for PCLN

An April covered call on AAPL at strike $144.00 using 300 shares is offering an income potential of $426. In May, a strike 145.00 covered call offers $960 and in June, a strike 145.00 covered call offers $1,200 in premium.

The annualized return by writing covered calls in April is 22.77%, in May is 18.90% and in June is 14.52%.

Chart for AAPL


Energy Focus: Income Opportunities

An April covered call on HES at strike $48.50 using 300 shares is offering an income potential of $264. In May, a strike 50.00 covered call offers $378 and in June, a strike 50.00 covered call offers $537 in premium.

The annualized return by writing covered calls in April is 42.39%, in May is 22.25% and in June is 19.54%.

Chart for HES

An April covered call on SLB at strike $79.00 using 300 shares is offering an income potential of $312. In May, a strike 80.00 covered call offers $444 and in June, a strike 80.00 covered call offers $594 in premium.

The annualized return by writing covered calls in April is 30.58%, in May is 15.92% and in June is 13.10%.

Chart for SLB


Healthcare Focus: Income Opportunities

An April covered call on HCA at strike $89.00 using 300 shares is offering an income potential of $315. In May, a strike 90.00 covered call offers $585 and in June, a strike 90.00 covered call offers $765 in premium.

The annualized return by writing covered calls in April is 27.32%, in May is 18.64% and in June is 15.00%.

Chart for HCA

An April covered call on JNJ at strike $126.00 using 300 shares is offering an income potential of $309. In May, a strike 130.00 covered call offers $150 and in June, a strike 130.00 covered call offers $225 in premium.

The annualized return by writing covered calls in April is 18.95%, in May is 3.33% and in June is 3.06%.

Chart for JNJ


Consumer Staples Focus: Income Opportunities

A May covered call on KO at strike $43.00 using 300 shares is offering an income potential of $168. In June, a strike 43.00 covered call offers $219 in premium.

The annualized return by writing covered calls in May is 11.03% and in June is 8.82%.

Chart for KO

An April covered call on PEP at strike $112.00 using 300 shares is offering an income potential of $192. In May, a strike 115.00 covered call offers $171 and in June, a strike 115.00 covered call offers $258 in premium.

The annualized return by writing covered calls in April is 13.16%, in May is 4.26% and in June is 3.94%.

Chart for PEP


Consumer Discretionary Focus: Income Opportunities

An April covered call on HD at strike $148.00 using 300 shares is offering an income potential of $285. In May, a strike 150.00 covered call offers $573 and in June, a strike 150.00 covered call offers $729 in premium.

The annualized return by writing covered calls in April is 14.81%, in May is 10.90% and in June is 8.51%.

Chart for HD

An April covered call on AMZN at strike $900.00 using 300 shares is offering an income potential of $5,370. In May, a strike 900.00 covered call offers $9,300 and in June, a strike 900.00 covered call offers $11,550 in premium.

The annualized return by writing covered calls in April is 46.38%, in May is 29.65% and in June is 22.70%.

Chart for AMZN


Financials Focus: Income Opportunities

An April covered call on MET at strike $53.00 using 300 shares is offering an income potential of $201. In May, a strike 55.00 covered call offers $201 and in June, a strike 55.00 covered call offers $306 in premium.

The annualized return by writing covered calls in April is 29.39%, in May is 10.69% and in June is 10.01%.

Chart for MET


Industrials Focus: Income Opportunities

An April covered call on UPS at strike $107.00 using 300 shares is offering an income potential of $279. In May, a strike 110.00 covered call offers $294 and in June, a strike 110.00 covered call offers $414 in premium.

The annualized return by writing covered calls in April is 20.06%, in May is 7.69% and in June is 6.64%.

Chart for UPS

An April covered call on GE at strike $30.00 using 300 shares is offering an income potential of $105. In May, a strike 30.00 covered call offers $174 and in June, a strike 30.00 covered call offers $222 in premium.

The annualized return by writing covered calls in April is 26.99%, in May is 16.39% and in June is 12.85%.

Chart for GE


Materials Focus: Income Opportunities

A May covered call on FCX at strike $14.00 using 300 shares is offering an income potential of $189. In June, a strike 14.00 covered call offers $252 in premium.

The annualized return by writing covered calls in May is 40.42% and in June is 33.48%.

Chart for FCX

An April covered call on HUN at strike $25.00 using 300 shares is offering an income potential of $90. In May, a strike 25.00 covered call offers $255 and in August, a strike 25.00 covered call offers $480 in premium.

The annualized return by writing covered calls in April is 28.11%, in May is 29.63% and in August is 18.77%.

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 $195. In August, a strike 80.00 covered call offers $600 in premium.

The annualized return by writing covered calls in May is 6.94% and in August is 6.46%.

Chart for ED

An April covered call on NEE at strike $130.00 using 300 shares is offering an income potential of $345. In May, a strike 130.00 covered call offers $720 and in June, a strike 130.00 covered call offers $840 in premium.

The annualized return by writing covered calls in April is 20.40%, in May is 15.63% and in June is 11.18%.

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 $165. In July, a strike 25.00 covered call offers $210 in premium.

The annualized return by writing covered calls in May is 19.08% and in July is 10.05%.

Chart for CTL

A May covered call on LVLT at strike $60.00 using 300 shares is offering an income potential of $105. In June, a strike 60.00 covered call offers $135 in premium.

The annualized return by writing covered calls in May is 4.99% and in June is 3.93%.

Chart for LVLT

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

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