Income Alerts Newsletter for 06/16/2016

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 DIA options at strike $192.00 for July 16 2016 are offering a 0.01% return, which annualizes at a rate of 0.07%.

Chart for DIA

The SPY options at strike $208.00 for July 8 2016 are offering a 1.57% return, which annualizes at a rate of 24.98%.

Chart for SPY


Technology Focus: Income Opportunities

A June covered call on QCOM at strike $53.50 using 300 shares is offering an income potential of $72. In July, a strike 55.00 covered call offers $171 and in August, a strike 55.00 covered call offers $444 in premium.

The annualized return by writing covered calls in June is 55.05%, in July is 12.73% and in August is 15.80%.

Chart for QCOM

A June covered call on BABA at strike $78.50 using 300 shares is offering an income potential of $147. In July, a strike 80.00 covered call offers $468 and in August, a strike 80.00 covered call offers $990 in premium.

The annualized return by writing covered calls in June is 76.53%, in July is 23.91% and in August is 24.30%.

Chart for BABA


Energy Focus: Income Opportunities

A June covered call on CVX at strike $101.00 using 300 shares is offering an income potential of $171. In July, a strike 105.00 covered call offers $276 and in August, a strike 105.00 covered call offers $567 in premium.

The annualized return by writing covered calls in June is 69.31%, in July is 10.86% and in August is 10.59%.

Chart for CVX

A June covered call on EOG at strike $82.50 using 300 shares is offering an income potential of $291. In July, a strike 82.50 covered call offers $990 and in October, a strike 82.50 covered call offers $1,770 in premium.

The annualized return by writing covered calls in June is 144.86%, in July is 49.10% and in October is 21.81%.

Chart for EOG


Healthcare Focus: Income Opportunities

A June covered call on JNJ at strike $117.00 using 300 shares is offering an income potential of $111. In July, a strike 120.00 covered call offers $189 and in August, a strike 120.00 covered call offers $432 in premium.

The annualized return by writing covered calls in June is 38.79%, in July is 6.41% and in August is 6.93%.

Chart for JNJ

A July covered call on MCK at strike $185.00 using 300 shares is offering an income potential of $1,080. In August, a strike 185.00 covered call offers $1,710 in premium.

The annualized return by writing covered calls in July is 23.90% and in August is 17.99%.

Chart for MCK


Consumer Staples Focus: Income Opportunities

A June covered call on PEP at strike $103.00 using 300 shares is offering an income potential of $123. In July, a strike 105.00 covered call offers $327 and in October, a strike 105.00 covered call offers $810 in premium.

The annualized return by writing covered calls in June is 48.69%, in July is 12.61% and in October is 7.63%.

Chart for PEP

A July covered call on STZ at strike $160.00 using 300 shares is offering an income potential of $900. In October, a strike 160.00 covered call offers $2,220 in premium.

The annualized return by writing covered calls in July is 23.05% and in October is 14.07%.

Chart for STZ


Consumer Discretionary Focus: Income Opportunities

A June covered call on DG at strike $90.50 using 300 shares is offering an income potential of $180. In July, a strike 92.50 covered call offers $360 and in August, a strike 92.50 covered call offers $735 in premium.

The annualized return by writing covered calls in June is 81.22%, in July is 15.83% and in August is 15.39%.

Chart for DG

A June covered call on AMZN at strike $715.00 using 300 shares is offering an income potential of $2,295. In July, a strike 715.00 covered call offers $6,165 and in August, a strike 715.00 covered call offers $12,225 in premium.

The annualized return by writing covered calls in June is 131.72%, in July is 34.88% and in August is 33.46%.

Chart for AMZN


Industrials Focus: Income Opportunities

A June covered call on UNP at strike $88.00 using 300 shares is offering an income potential of $114. In July, a strike 90.00 covered call offers $393 and in August, a strike 90.00 covered call offers $717 in premium.

The annualized return by writing covered calls in June is 53.04%, in July is 17.89% and in August is 15.52%.

Chart for UNP

A July covered call on HTZ at strike $11.00 using 300 shares is offering an income potential of $165. In September, a strike 11.00 covered call offers $330 in premium.

The annualized return by writing covered calls in July is 62.99% and in September is 43.90%.

Chart for HTZ


Materials Focus: Income Opportunities

A July covered call on DOW at strike $52.50 using 300 shares is offering an income potential of $225. In September, a strike 52.50 covered call offers $624 in premium.

The annualized return by writing covered calls in July is 17.28% and in September is 16.22%.

Chart for DOW

A July covered call on FCX at strike $12.00 using 300 shares is offering an income potential of $159. In August, a strike 12.00 covered call offers $276 in premium.

The annualized return by writing covered calls in July is 59.60% and in August is 50.47%.

Chart for FCX


Utilities Focus: Income Opportunities

A July covered call on CNP at strike $23.00 using 300 shares is offering an income potential of $135. In August, a strike 23.00 covered call offers $210 in premium.

The annualized return by writing covered calls in July is 23.55% and in August is 17.40%.

Chart for CNP

A July covered call on D at strike $75.00 using 300 shares is offering an income potential of $210. In October, a strike 75.00 covered call offers $555 in premium.

The annualized return by writing covered calls in July is 11.25% and in October is 7.26%.

Chart for D


Telecommunications Focus: Income Opportunities

A July covered call on SBAC at strike $105.00 using 300 shares is offering an income potential of $285. In September, a strike 105.00 covered call offers $720 in premium.

The annualized return by writing covered calls in July is 11.24% and in September is 9.50%.

Chart for SBAC

A July covered call on TMUS at strike $42.00 using 300 shares is offering an income potential of $336. In August, a strike 42.00 covered call offers $555 in premium.

The annualized return by writing covered calls in July is 32.53% and in August is 25.70%.

Chart for TMUS

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

The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.