Income Alerts Newsletter for 09/14/2016

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 QQQ options at strike $115.50 for October 7 2016 are offering a 1.55% return, which annualizes at a rate of 23.58%.

Chart for QQQ


Technology Focus: Income Opportunities

A September covered call on QCOM at strike $61.50 using 300 shares is offering an income potential of $135. In October, a strike 62.50 covered call offers $342 and in November, a strike 62.50 covered call offers $627 in premium.

The annualized return by writing covered calls in September is 67.49%, in October is 17.74% and in November is 19.23%.

Chart for QCOM

A September covered call on AAPL at strike $108.00 using 300 shares is offering an income potential of $282. In October, a strike 110.00 covered call offers $615 and in November, a strike 110.00 covered call offers $1,035 in premium.

The annualized return by writing covered calls in September is 80.16%, in October is 18.12% and in November is 17.99%.

Chart for AAPL


Energy Focus: Income Opportunities

A September covered call on APC at strike $58.00 using 300 shares is offering an income potential of $225. In October, a strike 60.00 covered call offers $507 and in November, a strike 60.00 covered call offers $777 in premium.

The annualized return by writing covered calls in September is 120.40%, in October is 28.29% and in November is 25.65%.

Chart for APC

A September covered call on EOG at strike $90.50 using 300 shares is offering an income potential of $315. In October, a strike 92.50 covered call offers $660 and in January, a strike 92.50 covered call offers $1,605 in premium.

The annualized return by writing covered calls in September is 107.23%, in October is 23.34% and in January is 17.66%.

Chart for EOG


Healthcare Focus: Income Opportunities

A September covered call on MRK at strike $62.00 using 300 shares is offering an income potential of $75. In October, a strike 62.50 covered call offers $336 and in November, a strike 62.50 covered call offers $513 in premium.

The annualized return by writing covered calls in September is 37.06%, in October is 17.27% and in November is 15.50%.

Chart for MRK


Consumer Staples Focus: Income Opportunities

A September covered call on WBA at strike $82.50 using 300 shares is offering an income potential of $177. In October, a strike 82.50 covered call offers $651 and in January, a strike 82.50 covered call offers $1,320 in premium.

The annualized return by writing covered calls in September is 65.93%, in October is 25.36% and in January is 15.87%.

Chart for WBA

A September covered call on PG at strike $87.50 using 300 shares is offering an income potential of $114. In October, a strike 87.50 covered call offers $465 and in November, a strike 87.50 covered call offers $597 in premium.

The annualized return by writing covered calls in September is 40.01%, in October is 16.97% and in November is 12.75%.

Chart for PG


Consumer Discretionary Focus: Income Opportunities

A September covered call on AMZN at strike $762.50 using 300 shares is offering an income potential of $1,515. In October, a strike 765.00 covered call offers $5,700 and in November, a strike 765.00 covered call offers $10,830 in premium.

The annualized return by writing covered calls in September is 60.96%, in October is 23.96% and in November is 27.13%.

Chart for AMZN

An October covered call on TWC at strike $210.00 using 300 shares is offering an income potential of $3,090. In January, a strike 210.00 covered call offers $3,180 and in January, a strike 210.00 covered call offers $5,550 in premium.

The annualized return by writing covered calls in October is 13.77%, in January is 7.81% and in January is 5.97%.

Chart for TWC


Financials Focus: Income Opportunities

A September covered call on MET at strike $44.00 using 300 shares is offering an income potential of $147. In October, a strike 45.00 covered call offers $297 and in November, a strike 45.00 covered call offers $414 in premium.

The annualized return by writing covered calls in September is 102.83%, in October is 21.56% and in November is 17.65%.

Chart for MET

A September covered call on MS at strike $31.50 using 300 shares is offering an income potential of $117. In October, a strike 32.00 covered call offers $288 and in November, a strike 32.00 covered call offers $348 in premium.

The annualized return by writing covered calls in September is 114.54%, in October is 29.46% and in November is 20.86%.

Chart for MS


Industrials Focus: Income Opportunities

An October covered call on HTZ at strike $50.00 using 300 shares is offering an income potential of $420. In January, a strike 50.00 covered call offers $1,170 in premium.

The annualized return by writing covered calls in October is 28.06% and in January is 24.78%.

Chart for HTZ

A September covered call on DAL at strike $38.00 using 300 shares is offering an income potential of $90. In October, a strike 38.00 covered call offers $441 and in December, a strike 38.00 covered call offers $720 in premium.

The annualized return by writing covered calls in September is 73.53%, in October is 38.15% and in December is 26.25%.

Chart for DAL


Materials Focus: Income Opportunities

A September covered call on MON at strike $107.00 using 300 shares is offering an income potential of $660. In October, a strike 110.00 covered call offers $660 and in December, a strike 110.00 covered call offers $855 in premium.

The annualized return by writing covered calls in September is 193.21%, in October is 19.82% and in December is 10.61%.

Chart for MON


Utilities Focus: Income Opportunities

A November covered call on AES at strike $13.00 using 300 shares is offering an income potential of $90.

The annualized return by writing covered calls in November is 13.52%.

Chart for AES


Telecommunications Focus: Income Opportunities

An October covered call on S at strike $7.00 using 300 shares is offering an income potential of $99. In November, a strike 7.00 covered call offers $150 in premium.

The annualized return by writing covered calls in October is 49.57% and in November is 44.95%.

Chart for S

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

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