Income Alerts Newsletter for 04/27/2017

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 $135.00 for May 20 2017 are offering a 0.98% return, which annualizes at a rate of 14.91%.

Chart for QQQ

The DIA options at strike $209.50 for May 20 2017 are offering a 0.81% return, which annualizes at a rate of 12.30%.

Chart for DIA

The SPY options at strike $238.50 for May 20 2017 are offering a 0.85% return, which annualizes at a rate of 12.87%.

Chart for SPY


Technology Focus: Income Opportunities

A May covered call on PCLN at strike $1805.00 using 300 shares is offering an income potential of $13,050. In June, a strike 1805.00 covered call offers $16,350 and in July, a strike 1805.00 covered call offers $20,820 in premium.

The annualized return by writing covered calls in May is 37.58%, in June is 21.86% and in July is 16.78%.

Chart for PCLN

A May covered call on AAPL at strike $144.00 using 300 shares is offering an income potential of $852. In June, a strike 145.00 covered call offers $975 and in July, a strike 145.00 covered call offers $1,245 in premium.

The annualized return by writing covered calls in May is 30.67%, in June is 16.24% and in July is 12.48%.

Chart for AAPL


Energy Focus: Income Opportunities

A May covered call on HES at strike $50.00 using 300 shares is offering an income potential of $339. In June, a strike 50.00 covered call offers $573 and in July, a strike 52.50 covered call offers $459 in premium.

The annualized return by writing covered calls in May is 35.52%, in June is 28.17% and in July is 13.38%.

Chart for HES


Healthcare Focus: Income Opportunities

A May covered call on GILD at strike $68.50 using 300 shares is offering an income potential of $516. In June, a strike 70.00 covered call offers $453 and in July, a strike 70.00 covered call offers $549 in premium.

The annualized return by writing covered calls in May is 39.34%, in June is 15.89% and in July is 11.56%.

Chart for GILD

A May covered call on JNJ at strike $124.00 using 300 shares is offering an income potential of $324. In June, a strike 125.00 covered call offers $330 and in July, a strike 125.00 covered call offers $585 in premium.

The annualized return by writing covered calls in May is 13.42%, in June is 6.31% and in July is 6.73%.

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 $495. In June, a strike 85.00 covered call offers $330 and in July, a strike 85.00 covered call offers $435 in premium.

The annualized return by writing covered calls in May is 31.23%, in June is 9.54% and in July is 7.55%.

Chart for CVS

A May covered call on WBA at strike $86.00 using 300 shares is offering an income potential of $378. In June, a strike 87.50 covered call offers $357 and in July, a strike 87.50 covered call offers $675 in premium.

The annualized return by writing covered calls in May is 22.63%, in June is 9.86% and in July is 11.28%.

Chart for WBA


Consumer Discretionary Focus: Income Opportunities

A May covered call on GM at strike $34.50 using 300 shares is offering an income potential of $243. In June, a strike 35.00 covered call offers $252 and in September, a strike 35.00 covered call offers $447 in premium.

The annualized return by writing covered calls in May is 36.70%, in June is 17.58% and in September is 11.56%.

Chart for GM

A May covered call on DG at strike $73.00 using 300 shares is offering an income potential of $375. In June, a strike 75.00 covered call offers $510 and in August, a strike 75.00 covered call offers $795 in premium.

The annualized return by writing covered calls in May is 26.64%, in June is 16.83% and in August is 12.02%.

Chart for DG


Financials Focus: Income Opportunities

A May covered call on MS at strike $44.50 using 300 shares is offering an income potential of $240. In June, a strike 45.00 covered call offers $330 and in July, a strike 45.00 covered call offers $483 in premium.

The annualized return by writing covered calls in May is 27.92%, in June is 17.84% and in July is 15.80%.

Chart for MS

A May covered call on WFC at strike $55.00 using 300 shares is offering an income potential of $183. In June, a strike 55.00 covered call offers $351 and in July, a strike 55.00 covered call offers $501 in premium.

The annualized return by writing covered calls in May is 17.20%, in June is 15.39% and in July is 13.25%.

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 $300. In June, a strike 17.50 covered call offers $405 and in July, a strike 17.50 covered call offers $525 in premium.

The annualized return by writing covered calls in May is 92.96%, in June is 59.19% and in July is 47.03%.

Chart for HTZ

A May covered call on UPS at strike $108.00 using 300 shares is offering an income potential of $468. In June, a strike 110.00 covered call offers $396 and in July, a strike 110.00 covered call offers $549 in premium.

The annualized return by writing covered calls in May is 22.37%, in June is 8.72% and in July is 7.26%.

Chart for UPS


Materials Focus: Income Opportunities

A May covered call on DOW at strike $64.50 using 300 shares is offering an income potential of $309. In June, a strike 65.00 covered call offers $369 and in September, a strike 65.00 covered call offers $792 in premium.

The annualized return by writing covered calls in May is 24.75%, in June is 13.68% and in September is 10.92%.

Chart for DOW

A May covered call on FCX at strike $14.00 using 300 shares is offering an income potential of $87. In June, a strike 14.00 covered call offers $165 and in July, a strike 14.00 covered call offers $240 in premium.

The annualized return by writing covered calls in May is 33.39%, in June is 29.81% and in July is 26.43%.

Chart for FCX


Utilities Focus: Income Opportunities

A May covered call on D at strike $77.50 using 300 shares is offering an income potential of $345. In June, a strike 77.50 covered call offers $435 and in July, a strike 77.50 covered call offers $600 in premium.

The annualized return by writing covered calls in May is 22.91%, in June is 13.38% and in July is 11.12%.

Chart for D

A June covered call on DUK at strike $85.00 using 300 shares is offering an income potential of $90. In July, a strike 85.00 covered call offers $210 in premium.

The annualized return by writing covered calls in June is 2.56% and in July is 3.59%.

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 $180 and in July, a strike 26.00 covered call offers $210 in premium.

The annualized return by writing covered calls in May is 36.11%, in June is 16.67% and in July is 11.67%.

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 6.00%.

Chart for LVLT

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

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