Income Alerts Newsletter for 09/15/2016

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 $116.00 for October 7 2016 are offering a 1.35% return, which annualizes at a rate of 21.38%.

Chart for QQQ


Technology Focus: Income Opportunities

A September covered call on QCOM at strike $62.00 using 300 shares is offering an income potential of $84. In October, a strike 62.50 covered call offers $372 and in November, a strike 62.50 covered call offers $678 in premium.

The annualized return by writing covered calls in September is 55.56%, in October is 19.74% and in November is 21.07%.

Chart for QCOM

A September covered call on BABA at strike $103.00 using 300 shares is offering an income potential of $210. In October, a strike 105.00 covered call offers $783 and in November, a strike 105.00 covered call offers $975 in premium.

The annualized return by writing covered calls in September is 83.74%, in October is 25.12% and in November is 18.13%.

Chart for BABA


Energy Focus: Income Opportunities

A September covered call on APC at strike $56.00 using 300 shares is offering an income potential of $165. In October, a strike 57.50 covered call offers $564 and in November, a strike 57.50 covered call offers $831 in premium.

The annualized return by writing covered calls in September is 121.51%, in October is 33.60% and in November is 28.99%.

Chart for APC

A September covered call on EOG at strike $88.50 using 300 shares is offering an income potential of $252. In October, a strike 90.00 covered call offers $750 and in January, a strike 90.00 covered call offers $1,695 in premium.

The annualized return by writing covered calls in September is 116.65%, in October is 27.94% and in January is 19.31%.

Chart for EOG


Healthcare Focus: Income Opportunities

A September covered call on MRK at strike $61.50 using 300 shares is offering an income potential of $81. In October, a strike 62.50 covered call offers $306 and in November, a strike 62.50 covered call offers $468 in premium.

The annualized return by writing covered calls in September is 53.78%, in October is 16.24% and in November is 14.43%.

Chart for MRK

A September covered call on TEVA at strike $52.00 using 300 shares is offering an income potential of $93. In October, a strike 52.50 covered call offers $396 and in November, a strike 52.50 covered call offers $549 in premium.

The annualized return by writing covered calls in September is 73.04%, in October is 25.04% and in November is 20.19%.

Chart for TEVA


Consumer Staples Focus: Income Opportunities

An October covered call on PG at strike $87.50 using 300 shares is offering an income potential of $405. In November, a strike 87.50 covered call offers $600 in premium.

The annualized return by writing covered calls in October is 15.14% and in November is 13.01%.

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 $1,065. In October, a strike 765.00 covered call offers $5,505 and in November, a strike 765.00 covered call offers $10,905 in premium.

The annualized return by writing covered calls in September is 57.02%, in October is 23.73% and in November is 27.74%.

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

An October covered call on BAC at strike $16.00 using 300 shares is offering an income potential of $123. In November, a strike 16.00 covered call offers $174 in premium.

The annualized return by writing covered calls in October is 25.87% and in November is 21.31%.

Chart for BAC

A September covered call on GS at strike $167.50 using 300 shares is offering an income potential of $204. In October, a strike 170.00 covered call offers $960 and in January, a strike 170.00 covered call offers $2,160 in premium.

The annualized return by writing covered calls in September is 50.00%, in October is 18.86% and in January is 12.82%.

Chart for GS


Industrials Focus: Income Opportunities

An October covered call on HTZ at strike $50.00 using 300 shares is offering an income potential of $330. In January, a strike 50.00 covered call offers $1,080 in premium.

The annualized return by writing covered calls in October is 22.76% and in January is 23.19%.

Chart for HTZ


Materials Focus: Income Opportunities

A September covered call on MON at strike $107.00 using 300 shares is offering an income potential of $120. In October, a strike 110.00 covered call offers $177 and in December, a strike 110.00 covered call offers $360 in premium.

The annualized return by writing covered calls in September is 45.76%, in October is 5.34% and in December is 4.41%.

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 $75.

The annualized return by writing covered calls in November is 11.45%.

Chart for AES


Telecommunications Focus: Income Opportunities

A September covered call on TMUS at strike $46.00 using 300 shares is offering an income potential of $93. In October, a strike 46.00 covered call offers $426 and in November, a strike 46.00 covered call offers $609 in premium.

The annualized return by writing covered calls in September is 82.78%, in October is 30.68% and in November is 25.61%.

Chart for TMUS

An October covered call on S at strike $7.00 using 300 shares is offering an income potential of $81. In November, a strike 7.00 covered call offers $138 in premium.

The annualized return by writing covered calls in October is 41.56% and in November is 42.05%.

Chart for S

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

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