Income Alerts Newsletter for 04/26/2017

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 $135.50 for May 20 2017 are offering a 0.90% return, which annualizes at a rate of 13.08%.

Chart for QQQ

The DIA options at strike $210.00 for May 20 2017 are offering a 0.74% return, which annualizes at a rate of 10.80%.

Chart for DIA

The SPY options at strike $239.00 for May 20 2017 are offering a 0.78% return, which annualizes at a rate of 11.41%.

Chart for SPY


Technology Focus: Income Opportunities

A May covered call on PCLN at strike $1800.00 using 300 shares is offering an income potential of $13,770. In June, a strike 1800.00 covered call offers $17,100 and in July, a strike 1800.00 covered call offers $21,000 in premium.

The annualized return by writing covered calls in May is 38.22%, in June is 22.53% and in July is 16.79%.

Chart for PCLN

A May covered call on AAPL at strike $145.00 using 300 shares is offering an income potential of $831. In June, a strike 145.00 covered call offers $1,065 and in July, a strike 145.00 covered call offers $1,365 in premium.

The annualized return by writing covered calls in May is 28.53%, in June is 17.34% and in July is 13.48%.

Chart for AAPL


Energy Focus: Income Opportunities

A May covered call on HES at strike $49.00 using 300 shares is offering an income potential of $381. In June, a strike 50.00 covered call offers $459 and in August, a strike 50.00 covered call offers $786 in premium.

The annualized return by writing covered calls in May is 39.14%, in June is 22.37% and in August is 17.91%.

Chart for HES

A May covered call on VLO at strike $66.00 using 300 shares is offering an income potential of $288. In June, a strike 67.50 covered call offers $303 and in September, a strike 67.50 covered call offers $768 in premium.

The annualized return by writing covered calls in May is 21.61%, in June is 10.73% and in September is 10.26%.

Chart for VLO


Healthcare Focus: Income Opportunities

A May covered call on GILD at strike $67.50 using 300 shares is offering an income potential of $435. In June, a strike 67.50 covered call offers $558 and in July, a strike 67.50 covered call offers $690 in premium.

The annualized return by writing covered calls in May is 32.24%, in June is 19.63% and in July is 14.72%.

Chart for GILD

A May covered call on JNJ at strike $124.00 using 300 shares is offering an income potential of $315. In June, a strike 125.00 covered call offers $330 and in July, a strike 125.00 covered call offers $576 in premium.

The annualized return by writing covered calls in May is 12.53%, in June is 6.19% and in July is 6.55%.

Chart for JNJ


Consumer Staples Focus: Income Opportunities

A May covered call on CVS at strike $82.50 using 300 shares is offering an income potential of $504. In June, a strike 85.00 covered call offers $339 and in July, a strike 85.00 covered call offers $447 in premium.

The annualized return by writing covered calls in May is 30.47%, in June is 9.60% and in July is 7.66%.

Chart for CVS

A May covered call on WBA at strike $86.00 using 300 shares is offering an income potential of $360. In June, a strike 87.50 covered call offers $351 and in July, a strike 87.50 covered call offers $633 in premium.

The annualized return by writing covered calls in May is 20.68%, in June is 9.51% and in July is 10.44%.

Chart for WBA


Consumer Discretionary Focus: Income Opportunities

A May covered call on DG at strike $72.00 using 300 shares is offering an income potential of $390. In June, a strike 72.50 covered call offers $690 and in August, a strike 72.50 covered call offers $990 in premium.

The annualized return by writing covered calls in May is 27.02%, in June is 22.87% and in August is 15.21%.

Chart for DG

A May covered call on AMZN at strike $910.00 using 300 shares is offering an income potential of $6,960. In June, a strike 910.00 covered call offers $9,285 and in July, a strike 920.00 covered call offers $10,395 in premium.

The annualized return by writing covered calls in May is 38.30%, in June is 24.31% and in July is 16.46%.

Chart for AMZN


Financials Focus: Income Opportunities

A May covered call on MS at strike $44.50 using 300 shares is offering an income potential of $243. In June, a strike 45.00 covered call offers $324 and in July, a strike 45.00 covered call offers $483 in premium.

The annualized return by writing covered calls in May is 27.21%, in June is 17.22% and in July is 15.65%.

Chart for MS

A May covered call on WFC at strike $55.00 using 300 shares is offering an income potential of $198. In June, a strike 55.00 covered call offers $348 and in July, a strike 55.00 covered call offers $528 in premium.

The annualized return by writing covered calls in May is 17.88%, in June is 14.96% and in July is 13.83%.

Chart for WFC


Industrials Focus: Income Opportunities

A May covered call on HTZ at strike $17.50 using 300 shares is offering an income potential of $195. In June, a strike 17.50 covered call offers $315 and in July, a strike 17.50 covered call offers $435 in premium.

The annualized return by writing covered calls in May is 58.87%, in June is 46.00% and in July is 39.26%.

Chart for HTZ

A May covered call on UPS at strike $108.00 using 300 shares is offering an income potential of $420. In June, a strike 110.00 covered call offers $330 and in July, a strike 110.00 covered call offers $501 in premium.

The annualized return by writing covered calls in May is 19.29%, in June is 7.13% and in July is 6.55%.

Chart for UPS


Materials Focus: Income Opportunities

A May covered call on DOW at strike $65.00 using 300 shares is offering an income potential of $315. In June, a strike 65.00 covered call offers $453 and in September, a strike 65.00 covered call offers $873 in premium.

The annualized return by writing covered calls in May is 24.04%, in June is 16.43% and in September is 11.92%.

Chart for DOW

A May covered call on FCX at strike $13.50 using 300 shares is offering an income potential of $93. In June, a strike 14.00 covered call offers $114 and in July, a strike 14.00 covered call offers $180 in premium.

The annualized return by writing covered calls in May is 35.39%, in June is 20.57% and in July is 19.91%.

Chart for FCX


Utilities Focus: Income Opportunities

A May covered call on D at strike $80.00 using 300 shares is offering an income potential of $90. In June, a strike 80.00 covered call offers $150 and in July, a strike 80.00 covered call offers $270 in premium.

The annualized return by writing covered calls in May is 5.66%, in June is 4.46% and in July is 4.86%.

Chart for D

A June covered call on DUK at strike $85.00 using 300 shares is offering an income potential of $105. In July, a strike 85.00 covered call offers $210 in premium.

The annualized return by writing covered calls in June is 2.93% and in July is 3.54%.

Chart for DUK


Telecommunications Focus: Income Opportunities

A May covered call on CTL at strike $26.00 using 300 shares is offering an income potential of $180. In June, a strike 26.00 covered call offers $195 and in July, a strike 26.00 covered call offers $210 in premium.

The annualized return by writing covered calls in May is 34.58%, in June is 17.71% and in July is 11.51%.

Chart for CTL

A September covered call on LVLT at strike $62.50 using 300 shares is offering an income potential of $420.

The annualized return by writing covered calls in September is 5.96%.

Chart for LVLT

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

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