Income Alerts Newsletter for 04/20/2017

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 $131.50 for May 12 2017 are offering a 1.37% return, which annualizes at a rate of 21.78%.

Chart for QQQ


Technology Focus: Income Opportunities

An April covered call on GOOG at strike $840.00 using 300 shares is offering an income potential of $570. In May, a strike 840.00 covered call offers $5,550 and in June, a strike 840.00 covered call offers $6,900 in premium.

The annualized return by writing covered calls in April is 27.64%, in May is 26.57% and in June is 17.45%.

Chart for GOOG

A May covered call on MA at strike $115.00 using 300 shares is offering an income potential of $405. In July, a strike 115.00 covered call offers $783 in premium.

The annualized return by writing covered calls in May is 14.33% and in July is 9.24%.

Chart for MA


Healthcare Focus: Income Opportunities

An April covered call on ESRX at strike $66.50 using 300 shares is offering an income potential of $108. In May, a strike 67.50 covered call offers $369 and in June, a strike 67.50 covered call offers $588 in premium.

The annualized return by writing covered calls in April is 66.36%, in May is 22.24% and in June is 18.83%.

Chart for ESRX


Consumer Staples Focus: Income Opportunities

An April covered call on WBA at strike $89.50 using 300 shares is offering an income potential of $90. In May, a strike 85.00 covered call offers $258 and in June, a strike 85.00 covered call offers $462 in premium.

The annualized return by writing covered calls in April is 43.86%, in May is 12.25% and in June is 11.62%.

Chart for WBA

A May covered call on KO at strike $44.00 using 300 shares is offering an income potential of $111. In June, a strike 44.00 covered call offers $150 in premium.

The annualized return by writing covered calls in May is 10.16% and in June is 7.24%.

Chart for KO


Consumer Discretionary Focus: Income Opportunities

An April covered call on HD at strike $148.00 using 300 shares is offering an income potential of $72. In May, a strike 150.00 covered call offers $615 and in June, a strike 150.00 covered call offers $741 in premium.

The annualized return by writing covered calls in April is 19.87%, in May is 16.63% and in June is 10.56%.

Chart for HD

An April covered call on AMZN at strike $900.00 using 300 shares is offering an income potential of $1,185. In May, a strike 900.00 covered call offers $8,535 and in June, a strike 900.00 covered call offers $10,230 in premium.

The annualized return by writing covered calls in April is 53.68%, in May is 38.47% and in June is 24.39%.

Chart for AMZN


Industrials Focus: Income Opportunities

An April covered call on DHR at strike $87.50 using 300 shares is offering an income potential of $150. In May, a strike 87.50 covered call offers $300 and in June, a strike 87.50 covered call offers $420 in premium.

The annualized return by writing covered calls in April is 70.79%, in May is 13.78% and in June is 10.18%.

Chart for DHR

A June covered call on GE at strike $31.00 using 300 shares is offering an income potential of $90.

The annualized return by writing covered calls in June is 6.25%.

Chart for GE


Materials Focus: Income Opportunities

A May covered call on PPG at strike $110.00 using 300 shares is offering an income potential of $120. In August, a strike 110.00 covered call offers $570 in premium.

The annualized return by writing covered calls in May is 4.50% and in August is 5.51%.

Chart for PPG

A May covered call on HUN at strike $24.00 using 300 shares is offering an income potential of $255. In August, a strike 24.00 covered call offers $480 in premium.

The annualized return by writing covered calls in May is 43.63% and in August is 21.57%.

Chart for HUN


Utilities Focus: Income Opportunities

An August covered call on AES at strike $12.00 using 300 shares is offering an income potential of $75.

The annualized return by writing covered calls in August is 6.73%.

Chart for AES

A May covered call on CNP at strike $28.00 using 300 shares is offering an income potential of $135. In August, a strike 28.00 covered call offers $270 in premium.

The annualized return by writing covered calls in May is 19.25% and in August is 9.95%.

Chart for CNP


Telecommunications Focus: Income Opportunities

A May covered call on LVLT at strike $60.00 using 300 shares is offering an income potential of $195. In June, a strike 60.00 covered call offers $255 in premium.

The annualized return by writing covered calls in May is 12.93% and in June is 8.91%.

Chart for LVLT

A May covered call on VOD at strike $26.00 using 300 shares is offering an income potential of $168. In July, a strike 26.00 covered call offers $216 in premium.

The annualized return by writing covered calls in May is 26.02% and in July is 11.10%.

Chart for VOD

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

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