Income Alerts Newsletter for 04/28/2017

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 $136.00 for May 20 2017 are offering a 1.04% return, which annualizes at a rate of 16.54%.

Chart for QQQ

The DIA options at strike $210.00 for May 20 2017 are offering a 0.60% return, which annualizes at a rate of 9.52%.

Chart for DIA

The SPY options at strike $239.00 for May 20 2017 are offering a 0.75% return, which annualizes at a rate of 11.93%.

Chart for SPY


Technology Focus: Income Opportunities

A May covered call on PCLN at strike $1837.50 using 300 shares is offering an income potential of $13,800. In June, a strike 1840.00 covered call offers $16,950 and in July, a strike 1840.00 covered call offers $20,700 in premium.

The annualized return by writing covered calls in May is 40.79%, in June is 22.73% and in July is 16.57%.

Chart for PCLN

A May covered call on AAPL at strike $144.00 using 300 shares is offering an income potential of $849. In June, a strike 145.00 covered call offers $930 and in July, a strike 145.00 covered call offers $1,245 in premium.

The annualized return by writing covered calls in May is 31.86%, in June is 15.77% and in July is 12.61%.

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 $366. In June, a strike 50.00 covered call offers $600 and in July, a strike 52.50 covered call offers $459 in premium.

The annualized return by writing covered calls in May is 39.89%, in June is 29.97% and in July is 13.46%.

Chart for HES


Healthcare Focus: Income Opportunities

A May covered call on GILD at strike $69.00 using 300 shares is offering an income potential of $480. In June, a strike 70.00 covered call offers $486 and in July, a strike 70.00 covered call offers $600 in premium.

The annualized return by writing covered calls in May is 37.91%, in June is 17.31% and in July is 12.75%.

Chart for GILD

A May covered call on JNJ at strike $124.00 using 300 shares is offering an income potential of $351. In June, a strike 125.00 covered call offers $357 and in July, a strike 125.00 covered call offers $615 in premium.

The annualized return by writing covered calls in May is 15.15%, in June is 6.95% and in July is 7.15%.

Chart for JNJ


Consumer Staples Focus: Income Opportunities

A May covered call on CVS at strike $83.00 using 300 shares is offering an income potential of $552. In June, a strike 85.00 covered call offers $423 and in July, a strike 85.00 covered call offers $555 in premium.

The annualized return by writing covered calls in May is 36.07%, in June is 12.40% and in July is 9.70%.

Chart for CVS

A May covered call on WBA at strike $86.00 using 300 shares is offering an income potential of $342. In June, a strike 87.50 covered call offers $342 and in July, a strike 87.50 covered call offers $618 in premium.

The annualized return by writing covered calls in May is 21.35%, in June is 9.63% and in July is 10.43%.

Chart for WBA


Consumer Discretionary Focus: Income Opportunities

A May covered call on GM at strike $35.00 using 300 shares is offering an income potential of $189. In June, a strike 35.00 covered call offers $258 and in September, a strike 35.00 covered call offers $447 in premium.

The annualized return by writing covered calls in May is 29.48%, in June is 18.27% and in September is 11.59%.

Chart for GM

A May covered call on DG at strike $73.50 using 300 shares is offering an income potential of $345. In June, a strike 75.00 covered call offers $570 and in August, a strike 75.00 covered call offers $885 in premium.

The annualized return by writing covered calls in May is 25.32%, in June is 19.07% and in August is 13.44%.

Chart for DG


Financials Focus: Income Opportunities

A May covered call on MS at strike $44.00 using 300 shares is offering an income potential of $198. In June, a strike 44.00 covered call offers $369 and in July, a strike 44.00 covered call offers $522 in premium.

The annualized return by writing covered calls in May is 24.43%, in June is 20.81% and in July is 17.67%.

Chart for MS

A May covered call on WFC at strike $54.50 using 300 shares is offering an income potential of $210. In June, a strike 55.00 covered call offers $312 and in July, a strike 55.00 covered call offers $483 in premium.

The annualized return by writing covered calls in May is 20.67%, in June is 13.94% and in July is 12.93%.

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 $285. In June, a strike 17.50 covered call offers $390 and in July, a strike 17.50 covered call offers $510 in premium.

The annualized return by writing covered calls in May is 91.87%, in June is 57.93% and in July is 46.07%.

Chart for HTZ

A May covered call on UPS at strike $109.00 using 300 shares is offering an income potential of $360. In June, a strike 110.00 covered call offers $420 and in July, a strike 110.00 covered call offers $642 in premium.

The annualized return by writing covered calls in May is 17.69%, in June is 9.33% and in July is 8.51%.

Chart for UPS


Materials Focus: Income Opportunities

A May covered call on LYB at strike $87.50 using 300 shares is offering an income potential of $555. In June, a strike 87.50 covered call offers $780 and in September, a strike 87.50 covered call offers $1,290 in premium.

The annualized return by writing covered calls in May is 34.31%, in June is 21.94% and in September is 13.30%.

Chart for LYB

A May covered call on DOW at strike $63.50 using 300 shares is offering an income potential of $240. In June, a strike 65.00 covered call offers $222 and in September, a strike 65.00 covered call offers $606 in premium.

The annualized return by writing covered calls in May is 20.35%, in June is 8.48% and in September is 8.49%.

Chart for DOW


Utilities Focus: Income Opportunities

A May covered call on D at strike $80.00 using 300 shares is offering an income potential of $75. In June, a strike 80.00 covered call offers $150 and in July, a strike 80.00 covered call offers $255 in premium.

The annualized return by writing covered calls in May is 5.12%, in June is 4.64% and in July is 4.69%.

Chart for D

A June covered call on DUK at strike $85.00 using 300 shares is offering an income potential of $120. In July, a strike 85.00 covered call offers $225 in premium.

The annualized return by writing covered calls in June is 3.47% and in July is 3.87%.

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 $150. In June, a strike 26.00 covered call offers $165 and in July, a strike 26.00 covered call offers $195 in premium.

The annualized return by writing covered calls in May is 31.38%, in June is 15.60% and in July is 10.97%.

Chart for CTL

A September covered call on LVLT at strike $62.50 using 300 shares is offering an income potential of $390.

The annualized return by writing covered calls in September is 5.61%.

Chart for LVLT

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

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