Income Alerts Newsletter for 06/30/2016

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 $177.00 for July 22 2016 are offering a 1.24% return, which annualizes at a rate of 19.74%.

Chart for DIA


Technology Focus: Income Opportunities

A July covered call on QCOM at strike $54.00 using 300 shares is offering an income potential of $195. In August, a strike 55.00 covered call offers $411 and in September, a strike 55.00 covered call offers $480 in premium.

The annualized return by writing covered calls in July is 26.38%, in August is 18.43% and in September is 14.05%.

Chart for QCOM

A July covered call on BABA at strike $78.50 using 300 shares is offering an income potential of $474. In August, a strike 80.00 covered call offers $804 and in October, a strike 80.00 covered call offers $1,215 in premium.

The annualized return by writing covered calls in July is 44.37%, in August is 24.96% and in October is 17.37%.

Chart for BABA


Energy Focus: Income Opportunities

A July covered call on HAL at strike $45.00 using 300 shares is offering an income potential of $270. In August, a strike 45.00 covered call offers $570 and in September, a strike 45.00 covered call offers $738 in premium.

The annualized return by writing covered calls in July is 44.23%, in August is 31.24% and in September is 26.64%.

Chart for HAL

A July covered call on HES at strike $58.00 using 300 shares is offering an income potential of $516. In August, a strike 60.00 covered call offers $753 and in September, a strike 60.00 covered call offers $945 in premium.

The annualized return by writing covered calls in July is 65.89%, in August is 31.88% and in September is 26.31%.

Chart for HES


Healthcare Focus: Income Opportunities

A July covered call on MRK at strike $57.50 using 300 shares is offering an income potential of $162. In August, a strike 57.50 covered call offers $387 and in October, a strike 57.50 covered call offers $585 in premium.

The annualized return by writing covered calls in July is 20.52%, in August is 16.24% and in October is 11.23%.

Chart for MRK

An August covered call on PFE at strike $36.00 using 300 shares is offering an income potential of $114. In September, a strike 36.00 covered call offers $165 in premium.

The annualized return by writing covered calls in August is 7.70% and in September is 7.28%.

Chart for PFE


Consumer Staples Focus: Income Opportunities

A July covered call on STZ at strike $160.00 using 300 shares is offering an income potential of $1,080. In August, a strike 160.00 covered call offers $1,500 and in October, a strike 160.00 covered call offers $2,190 in premium.

The annualized return by writing covered calls in July is 49.61%, in August is 22.73% and in October is 15.23%.

Chart for STZ

A July covered call on PEP at strike $104.00 using 300 shares is offering an income potential of $273. In August, a strike 105.00 covered call offers $405 and in October, a strike 105.00 covered call offers $666 in premium.

The annualized return by writing covered calls in July is 19.12%, in August is 9.31% and in October is 6.98%.

Chart for PEP


Consumer Discretionary Focus: Income Opportunities

A July covered call on CMCSA at strike $64.00 using 300 shares is offering an income potential of $201. In August, a strike 65.00 covered call offers $369 and in October, a strike 65.00 covered call offers $591 in premium.

The annualized return by writing covered calls in July is 22.74%, in August is 13.77% and in October is 10.09%.

Chart for CMCSA

A July covered call on DG at strike $94.00 using 300 shares is offering an income potential of $420. In August, a strike 95.00 covered call offers $675 and in November, a strike 95.00 covered call offers $1,410 in premium.

The annualized return by writing covered calls in July is 32.53%, in August is 17.25% and in November is 13.46%.

Chart for DG


Industrials Focus: Income Opportunities

A July covered call on UNP at strike $86.50 using 300 shares is offering an income potential of $423. In August, a strike 87.50 covered call offers $801 and in November, a strike 87.50 covered call offers $1,305 in premium.

The annualized return by writing covered calls in July is 35.67%, in August is 22.42% and in November is 13.55%.

Chart for UNP

A July covered call on HTZ at strike $11.00 using 300 shares is offering an income potential of $90. In August, a strike 11.00 covered call offers $240 and in September, a strike 11.00 covered call offers $285 in premium.

The annualized return by writing covered calls in July is 61.52%, in August is 56.32% and in September is 44.14%.

Chart for HTZ


Materials Focus: Income Opportunities

A July covered call on MON at strike $104.00 using 300 shares is offering an income potential of $621. In August, a strike 105.00 covered call offers $1,635 and in October, a strike 105.00 covered call offers $2,025 in premium.

The annualized return by writing covered calls in July is 43.81%, in August is 39.01% and in October is 22.14%.

Chart for MON

A July covered call on NEM at strike $38.00 using 300 shares is offering an income potential of $369. In August, a strike 38.00 covered call offers $750 and in September, a strike 38.00 covered call offers $915 in premium.

The annualized return by writing covered calls in July is 72.43%, in August is 49.87% and in September is 40.17%.

Chart for NEM


Utilities Focus: Income Opportunities

A July covered call on D at strike $77.50 using 300 shares is offering an income potential of $135. In August, a strike 77.50 covered call offers $375 and in October, a strike 77.50 covered call offers $555 in premium.

The annualized return by writing covered calls in July is 12.72%, in August is 11.67% and in October is 7.88%.

Chart for D

A July covered call on DUK at strike $85.00 using 300 shares is offering an income potential of $180. In August, a strike 85.00 covered call offers $405 and in October, a strike 85.00 covered call offers $630 in premium.

The annualized return by writing covered calls in July is 15.44%, in August is 11.46% and in October is 8.13%.

Chart for DUK


Telecommunications Focus: Income Opportunities

An August covered call on CTL at strike $29.00 using 300 shares is offering an income potential of $240. In October, a strike 29.00 covered call offers $315 in premium.

The annualized return by writing covered calls in August is 20.31% and in October is 12.16%.

Chart for CTL

A July covered call on SBAC at strike $110.00 using 300 shares is offering an income potential of $210. In August, a strike 110.00 covered call offers $750 and in September, a strike 110.00 covered call offers $615 in premium.

The annualized return by writing covered calls in July is 14.08%, in August is 16.72% and in September is 8.87%.

Chart for SBAC

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

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