Income Alerts Newsletter for 09/21/2016

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 $117.50 for October 14 2016 are offering a 1.31% return, which annualizes at a rate of 19.88%.

Chart for QQQ


Technology Focus: Income Opportunities

An October covered call on QCOM at strike $63.00 using 300 shares is offering an income potential of $375. In November, a strike 65.00 covered call offers $471 and in December, a strike 65.00 covered call offers $531 in premium.

The annualized return by writing covered calls in October is 23.20%, in November is 15.62% and in December is 12.05%.

Chart for QCOM

An October covered call on AAPL at strike $114.00 using 300 shares is offering an income potential of $735. In November, a strike 115.00 covered call offers $1,095 and in December, a strike 115.00 covered call offers $1,275 in premium.

The annualized return by writing covered calls in October is 25.15%, in November is 20.20% and in December is 16.12%.

Chart for AAPL


Energy Focus: Income Opportunities

An October covered call on APC at strike $58.50 using 300 shares is offering an income potential of $729. In November, a strike 60.00 covered call offers $846 and in January, a strike 60.00 covered call offers $1,230 in premium.

The annualized return by writing covered calls in October is 49.63%, in November is 30.93% and in January is 22.46%.

Chart for APC

An October covered call on EOG at strike $91.00 using 300 shares is offering an income potential of $894. In November, a strike 92.50 covered call offers $1,005 and in January, a strike 92.50 covered call offers $1,635 in premium.

The annualized return by writing covered calls in October is 38.88%, in November is 23.41% and in January is 19.04%.

Chart for EOG


Healthcare Focus: Income Opportunities

An October covered call on GILD at strike $82.00 using 300 shares is offering an income potential of $609. In November, a strike 82.50 covered call offers $990 and in December, a strike 82.50 covered call offers $1,155 in premium.

The annualized return by writing covered calls in October is 29.03%, in November is 25.58% and in December is 20.49%.

Chart for GILD

An October covered call on MRK at strike $62.00 using 300 shares is offering an income potential of $378. In November, a strike 62.50 covered call offers $486 and in December, a strike 62.50 covered call offers $573 in premium.

The annualized return by writing covered calls in October is 23.68%, in November is 16.34% and in December is 13.20%.

Chart for MRK


Consumer Staples Focus: Income Opportunities

An October covered call on PG at strike $89.00 using 300 shares is offering an income potential of $336. In November, a strike 90.00 covered call offers $399 and in December, a strike 90.00 covered call offers $507 in premium.

The annualized return by writing covered calls in October is 14.61%, in November is 9.27% and in December is 8.07%.

Chart for PG


Consumer Discretionary Focus: Income Opportunities

An October covered call on CMCSA at strike $66.50 using 300 shares is offering an income potential of $342. In November, a strike 67.50 covered call offers $396 and in January, a strike 67.50 covered call offers $627 in premium.

The annualized return by writing covered calls in October is 19.98%, in November is 12.37% and in January is 9.67%.

Chart for CMCSA

An October covered call on GM at strike $32.00 using 300 shares is offering an income potential of $216. In November, a strike 32.00 covered call offers $315 and in December, a strike 32.00 covered call offers $375 in premium.

The annualized return by writing covered calls in October is 26.55%, in November is 20.87% and in December is 17.05%.

Chart for GM


Financials Focus: Income Opportunities

An October covered call on JPM at strike $66.50 using 300 shares is offering an income potential of $381. In November, a strike 67.50 covered call offers $402 and in December, a strike 67.50 covered call offers $540 in premium.

The annualized return by writing covered calls in October is 22.22%, in November is 12.52% and in December is 11.55%.

Chart for JPM

An October covered call on MET at strike $44.50 using 300 shares is offering an income potential of $279. In November, a strike 45.00 covered call offers $348 and in December, a strike 45.00 covered call offers $438 in premium.

The annualized return by writing covered calls in October is 24.62%, in November is 16.47% and in December is 14.23%.

Chart for MET


Industrials Focus: Income Opportunities

An October covered call on HTZ at strike $47.50 using 300 shares is offering an income potential of $480. In November, a strike 47.50 covered call offers $840 and in January, a strike 47.50 covered call offers $1,830 in premium.

The annualized return by writing covered calls in October is 40.41%, in November is 38.75% and in January is 44.52%.

Chart for HTZ

An October covered call on UNP at strike $93.50 using 300 shares is offering an income potential of $744. In November, a strike 95.00 covered call offers $714 and in December, a strike 95.00 covered call offers $885 in premium.

The annualized return by writing covered calls in October is 31.20%, in November is 15.95% and in December is 13.57%.

Chart for UNP


Materials Focus: Income Opportunities

An October covered call on LYB at strike $80.00 using 300 shares is offering an income potential of $360. In November, a strike 80.00 covered call offers $675 and in December, a strike 80.00 covered call offers $795 in premium.

The annualized return by writing covered calls in October is 17.93%, in November is 18.18% and in December is 14.68%.

Chart for LYB


Utilities Focus: Income Opportunities

An October covered call on NEE at strike $130.00 using 300 shares is offering an income potential of $135. In November, a strike 130.00 covered call offers $375 and in December, a strike 130.00 covered call offers $510 in premium.

The annualized return by writing covered calls in October is 4.12%, in November is 6.14% and in December is 5.72%.

Chart for NEE

An October covered call on CNP at strike $24.00 using 300 shares is offering an income potential of $75. In November, a strike 24.00 covered call offers $135 and in January, a strike 24.00 covered call offers $195 in premium.

The annualized return by writing covered calls in October is 12.28%, in November is 11.89% and in January is 8.45%.

Chart for CNP


Telecommunications Focus: Income Opportunities

An October covered call on S at strike $6.50 using 300 shares is offering an income potential of $75. In November, a strike 7.00 covered call offers $99 in premium.

The annualized return by writing covered calls in October is 47.85% and in November is 34.14%.

Chart for S

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

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