Income Alerts Newsletter for 04/21/2017

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 $133.00 for May 12 2017 are offering a 1.14% return, which annualizes at a rate of 18.86%.

Chart for QQQ

The DIA options at strike $206.00 for May 12 2017 are offering a 0.97% return, which annualizes at a rate of 16.04%.

Chart for DIA

The SPY options at strike $235.50 for May 12 2017 are offering a 1.09% return, which annualizes at a rate of 18.10%.

Chart for SPY


Technology Focus: Income Opportunities

An April covered call on GOOG at strike $842.50 using 300 shares is offering an income potential of $735. In May, a strike 845.00 covered call offers $5,160 and in June, a strike 845.00 covered call offers $6,630 in premium.

The annualized return by writing covered calls in April is 53.28%, in May is 25.38% and in June is 16.97%.

Chart for GOOG

An April covered call on MA at strike $115.00 using 300 shares is offering an income potential of $93. In May, a strike 115.00 covered call offers $675 and in July, a strike 115.00 covered call offers $1,080 in premium.

The annualized return by writing covered calls in April is 49.51%, in May is 24.37% and in July is 12.73%.

Chart for MA


Healthcare Focus: Income Opportunities

A May covered call on ESRX at strike $67.50 using 300 shares is offering an income potential of $477. In June, a strike 67.50 covered call offers $663 in premium.

The annualized return by writing covered calls in May is 29.55% and in June is 21.45%.

Chart for ESRX


Consumer Staples Focus: Income Opportunities

A May covered call on CVS at strike $80.00 using 300 shares is offering an income potential of $456. In June, a strike 80.00 covered call offers $603 in premium.

The annualized return by writing covered calls in May is 23.74% and in June is 16.34%.

Chart for CVS

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 $345 and in June, a strike 85.00 covered call offers $537 in premium.

The annualized return by writing covered calls in April is 65.30%, in May is 16.86% and in June is 13.68%.

Chart for WBA


Consumer Discretionary Focus: Income Opportunities

A May covered call on DG at strike $72.50 using 300 shares is offering an income potential of $270. In August, a strike 72.50 covered call offers $900 in premium.

The annualized return by writing covered calls in May is 15.69% and in August is 13.37%.

Chart for DG

A May covered call on FOXA at strike $32.00 using 300 shares is offering an income potential of $150. In July, a strike 32.00 covered call offers $270 in premium.

The annualized return by writing covered calls in May is 19.90% and in July is 11.71%.

Chart for FOXA


Financials Focus: Income Opportunities

A May covered call on MS at strike $43.00 using 300 shares is offering an income potential of $243. In June, a strike 43.00 covered call offers $378 in premium.

The annualized return by writing covered calls in May is 23.64% and in June is 19.23%.

Chart for MS

A May covered call on AXP at strike $82.50 using 300 shares is offering an income potential of $153. In June, a strike 82.50 covered call offers $321 in premium.

The annualized return by writing covered calls in May is 7.80% and in June is 8.53%.

Chart for AXP


Industrials Focus: Income Opportunities

A May covered call on UPS at strike $110.00 using 300 shares is offering an income potential of $162. In June, a strike 110.00 covered call offers $264 in premium.

The annualized return by writing covered calls in May is 6.26% and in June is 5.29%.

Chart for UPS

A May covered call on GE at strike $31.00 using 300 shares is offering an income potential of $75. In June, a strike 31.00 covered call offers $123 in premium.

The annualized return by writing covered calls in May is 10.13% and in June is 8.64%.

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 $135. In August, a strike 110.00 covered call offers $570 in premium.

The annualized return by writing covered calls in May is 5.17% and in August is 5.49%.

Chart for PPG

A May covered call on HUN at strike $25.00 using 300 shares is offering an income potential of $165. In August, a strike 25.00 covered call offers $420 in premium.

The annualized return by writing covered calls in May is 28.13% and in August is 18.41%.

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 6.75%.

Chart for AES

A May covered call on CNP at strike $28.00 using 300 shares is offering an income potential of $120. In August, a strike 28.00 covered call offers $255 in premium.

The annualized return by writing covered calls in May is 17.70% and in August is 9.48%.

Chart for CNP


Telecommunications Focus: Income Opportunities

A May covered call on VOD at strike $26.00 using 300 shares is offering an income potential of $177. In July, a strike 26.00 covered call offers $225 in premium.

The annualized return by writing covered calls in May is 28.33% and in July is 11.69%.

Chart for VOD

A May covered call on CTL at strike $26.00 using 300 shares is offering an income potential of $120. In July, a strike 26.00 covered call offers $195 in premium.

The annualized return by writing covered calls in May is 19.40% and in July is 10.27%.

Chart for CTL

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

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