Income Alerts Newsletter for 04/11/2017

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 May 5 2017 are offering a 1.13% return, which annualizes at a rate of 16.44%.

Chart for QQQ

The DIA options at strike $206.50 for May 5 2017 are offering a 0.99% return, which annualizes at a rate of 14.43%.

Chart for DIA

The SPY options at strike $235.50 for May 5 2017 are offering a 1.14% return, which annualizes at a rate of 16.63%.

Chart for SPY


Technology Focus: Income Opportunities

An April covered call on PCLN at strike $1777.50 using 300 shares is offering an income potential of $4,800. In May, a strike 1780.00 covered call offers $17,160 and in June, a strike 1780.00 covered call offers $20,760 in premium.

The annualized return by writing covered calls in April is 27.65%, in May is 30.37% and in June is 21.76%.

Chart for PCLN

An April covered call on AAPL at strike $144.00 using 300 shares is offering an income potential of $285. In May, a strike 145.00 covered call offers $837 and in June, a strike 145.00 covered call offers $1,065 in premium.

The annualized return by writing covered calls in April is 20.32%, in May is 18.14% and in June is 13.65%.

Chart for AAPL


Energy Focus: Income Opportunities

An April covered call on HES at strike $50.00 using 300 shares is offering an income potential of $285. In May, a strike 50.00 covered call offers $627 and in June, a strike 50.00 covered call offers $825 in premium.

The annualized return by writing covered calls in April is 58.95%, in May is 39.83% and in June is 31.26%.

Chart for HES

An April covered call on OXY at strike $64.50 using 300 shares is offering an income potential of $159. In May, a strike 65.00 covered call offers $408 and in August, a strike 65.00 covered call offers $714 in premium.

The annualized return by writing covered calls in April is 25.34%, in May is 19.77% and in August is 10.74%.

Chart for OXY


Healthcare Focus: Income Opportunities

An April covered call on ESRX at strike $67.00 using 300 shares is offering an income potential of $246. In May, a strike 67.50 covered call offers $546 and in June, a strike 67.50 covered call offers $705 in premium.

The annualized return by writing covered calls in April is 37.74%, in May is 25.52% and in June is 19.54%.

Chart for ESRX

An April covered call on HCA at strike $88.50 using 300 shares is offering an income potential of $300. In May, a strike 90.00 covered call offers $555 and in June, a strike 90.00 covered call offers $720 in premium.

The annualized return by writing covered calls in April is 34.86%, in May is 19.54% and in June is 15.01%.

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 $174. In June, a strike 43.00 covered call offers $222 in premium.

The annualized return by writing covered calls in May is 12.57% and in June is 9.47%.

Chart for KO

An April covered call on PEP at strike $113.00 using 300 shares is offering an income potential of $99. In May, a strike 115.00 covered call offers $201 and in June, a strike 115.00 covered call offers $294 in premium.

The annualized return by writing covered calls in April is 8.99%, in May is 5.49% and in June is 4.74%.

Chart for PEP


Consumer Discretionary Focus: Income Opportunities

An April covered call on HD at strike $149.00 using 300 shares is offering an income potential of $249. In May, a strike 150.00 covered call offers $759 and in June, a strike 150.00 covered call offers $915 in premium.

The annualized return by writing covered calls in April is 17.13%, in May is 15.85% and in June is 11.28%.

Chart for HD

An April covered call on AMZN at strike $907.50 using 300 shares is offering an income potential of $3,450. In May, a strike 910.00 covered call offers $9,015 and in June, a strike 910.00 covered call offers $11,265 in premium.

The annualized return by writing covered calls in April is 39.06%, in May is 31.27% and in June is 23.18%.

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 $189. In May, a strike 55.00 covered call offers $213 and in June, a strike 55.00 covered call offers $327 in premium.

The annualized return by writing covered calls in April is 36.74%, in May is 12.44% and in June is 11.32%.

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 $219. In May, a strike 110.00 covered call offers $273 and in June, a strike 110.00 covered call offers $414 in premium.

The annualized return by writing covered calls in April is 21.01%, in May is 7.87% and in June is 7.05%.

Chart for UPS

A June covered call on GE at strike $31.00 using 300 shares is offering an income potential of $102.

The annualized return by writing covered calls in June is 6.15%.

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 $168. In June, a strike 14.00 covered call offers $237 in premium.

The annualized return by writing covered calls in May is 39.43% and in June is 33.31%.

Chart for FCX

An April covered call on CF at strike $30.00 using 300 shares is offering an income potential of $171. In May, a strike 30.00 covered call offers $444 and in August, a strike 30.00 covered call offers $708 in premium.

The annualized return by writing covered calls in April is 59.19%, in May is 47.59% and in August is 23.91%.

Chart for CF


Utilities Focus: Income Opportunities

A May covered call on ED at strike $80.00 using 300 shares is offering an income potential of $165. In August, a strike 80.00 covered call offers $600 in premium.

The annualized return by writing covered calls in May is 6.48% 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 $315. In May, a strike 130.00 covered call offers $690 and in June, a strike 130.00 covered call offers $765 in premium.

The annualized return by writing covered calls in April is 24.88%, in May is 16.51% and in June is 10.79%.

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 $210. In July, a strike 25.00 covered call offers $255 in premium.

The annualized return by writing covered calls in May is 26.43% and in July is 12.54%.

Chart for CTL

A May covered call on LVLT at strike $60.00 using 300 shares is offering an income potential of $120. In June, a strike 60.00 covered call offers $210 in premium.

The annualized return by writing covered calls in May is 6.23% and in June is 6.44%.

Chart for LVLT

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

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