Income Alerts Newsletter for 09/22/2016

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 $118.50 for October 14 2016 are offering a 0.92% return, which annualizes at a rate of 14.64%.

Chart for QQQ

The SPY options at strike $216.00 for October 12 2016 are offering a 0.82% return, which annualizes at a rate of 14.29%.

Chart for SPY


Technology Focus: Income Opportunities

An October covered call on QCOM at strike $64.00 using 300 shares is offering an income potential of $300. In November, a strike 65.00 covered call offers $540 and in December, a strike 65.00 covered call offers $618 in premium.

The annualized return by writing covered calls in October is 18.82%, in November is 18.03% and in December is 14.05%.

Chart for QCOM

An October covered call on AAPL at strike $114.00 using 300 shares is offering an income potential of $687. In November, a strike 115.00 covered call offers $1,020 and in December, a strike 115.00 covered call offers $1,245 in premium.

The annualized return by writing covered calls in October is 24.23%, in November is 19.10% and in December is 15.91%.

Chart for AAPL


Energy Focus: Income Opportunities

An October covered call on HAL at strike $43.00 using 300 shares is offering an income potential of $375. In November, a strike 43.00 covered call offers $495 and in December, a strike 44.00 covered call offers $489 in premium.

The annualized return by writing covered calls in October is 35.49%, in November is 24.85% and in December is 16.64%.

Chart for HAL

An October covered call on APC at strike $61.50 using 300 shares is offering an income potential of $612. In November, a strike 62.50 covered call offers $831 and in January, a strike 62.50 covered call offers $1,170 in premium.

The annualized return by writing covered calls in October is 40.70%, in November is 29.40% and in January is 20.41%.

Chart for APC


Healthcare Focus: Income Opportunities

An October covered call on GILD at strike $82.00 using 300 shares is offering an income potential of $573. In November, a strike 82.50 covered call offers $930 and in December, a strike 82.50 covered call offers $1,110 in premium.

The annualized return by writing covered calls in October is 28.18%, in November is 24.40% and in December is 19.90%.

Chart for GILD

An October covered call on MRK at strike $63.00 using 300 shares is offering an income potential of $291. In November, a strike 65.00 covered call offers $258 and in December, a strike 65.00 covered call offers $339 in premium.

The annualized return by writing covered calls in October is 18.50%, in November is 8.60% and in December is 7.70%.

Chart for MRK


Consumer Staples Focus: Income Opportunities

An October covered call on PEP at strike $108.00 using 300 shares is offering an income potential of $369. In November, a strike 110.00 covered call offers $336 and in December, a strike 110.00 covered call offers $432 in premium.

The annualized return by writing covered calls in October is 13.68%, in November is 6.54% and in December is 5.72%.

Chart for PEP

An October covered call on ADM at strike $43.00 using 300 shares is offering an income potential of $234. In November, a strike 43.00 covered call offers $420 and in December, a strike 43.00 covered call offers $501 in premium.

The annualized return by writing covered calls in October is 21.85%, in November is 20.92% and in December is 17.03%.

Chart for ADM


Consumer Discretionary Focus: Income Opportunities

An October covered call on CMCSA at strike $67.50 using 300 shares is offering an income potential of $240. In November, a strike 67.50 covered call offers $492 and in December, a strike 67.50 covered call offers $612 in premium.

The annualized return by writing covered calls in October is 14.19%, in November is 15.48% and in December is 13.14%.

Chart for CMCSA

An October covered call on GM at strike $32.50 using 300 shares is offering an income potential of $165. In November, a strike 33.00 covered call offers $237 and in December, a strike 33.00 covered call offers $285 in premium.

The annualized return by writing covered calls in October is 20.52%, in November is 15.60% and in December is 12.79%.

Chart for GM


Financials Focus: Income Opportunities

An October covered call on JPM at strike $67.00 using 300 shares is offering an income potential of $363. In November, a strike 67.50 covered call offers $438 and in December, a strike 67.50 covered call offers $579 in premium.

The annualized return by writing covered calls in October is 21.71%, in November is 13.81% and in December is 12.47%.

Chart for JPM

An October covered call on MET at strike $45.00 using 300 shares is offering an income potential of $288. In November, a strike 45.00 covered call offers $435 and in December, a strike 45.00 covered call offers $531 in premium.

The annualized return by writing covered calls in October is 25.84%, in November is 20.74% and in December is 17.30%.

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 $855 and in January, a strike 47.50 covered call offers $1,830 in premium.

The annualized return by writing covered calls in October is 41.46%, in November is 39.90% and in January is 44.58%.

Chart for HTZ

An October covered call on UNP at strike $95.50 using 300 shares is offering an income potential of $642. In November, a strike 97.50 covered call offers $603 and in December, a strike 97.50 covered call offers $738 in premium.

The annualized return by writing covered calls in October is 27.13%, in November is 13.37% and in December is 11.15%.

Chart for UNP


Materials Focus: Income Opportunities

An October covered call on NEM at strike $41.50 using 300 shares is offering an income potential of $510. In November, a strike 42.00 covered call offers $666 and in December, a strike 42.00 covered call offers $852 in premium.

The annualized return by writing covered calls in October is 50.89%, in November is 35.39% and in December is 31.20%.

Chart for NEM

An October covered call on FCX at strike $11.00 using 300 shares is offering an income potential of $132. In November, a strike 11.00 covered call offers $222 and in December, a strike 11.00 covered call offers $276 in premium.

The annualized return by writing covered calls in October is 51.29%, in November is 46.71% and in December is 40.12%.

Chart for FCX


Utilities Focus: Income Opportunities

An October covered call on AEP at strike $67.50 using 300 shares is offering an income potential of $180. In November, a strike 67.50 covered call offers $255 and in January, a strike 67.50 covered call offers $495 in premium.

The annualized return by writing covered calls in October is 10.77%, in November is 8.05% and in January is 7.65%.

Chart for AEP

An October covered call on DUK at strike $82.50 using 300 shares is offering an income potential of $330. In November, a strike 82.50 covered call offers $495 and in December, a strike 82.50 covered call offers $585 in premium.

The annualized return by writing covered calls in October is 16.03%, in November is 12.72% and in December is 10.23%.

Chart for DUK


Telecommunications Focus: Income Opportunities

An October covered call on TMUS at strike $46.00 using 300 shares is offering an income potential of $387. In November, a strike 46.00 covered call offers $621 and in January, a strike 46.00 covered call offers $846 in premium.

The annualized return by writing covered calls in October is 34.06%, in November is 29.23% and in January is 19.59%.

Chart for TMUS

An October covered call on S at strike $6.50 using 300 shares is offering an income potential of $96. In November, a strike 7.00 covered call offers $108 in premium.

The annualized return by writing covered calls in October is 62.38% and in November is 37.12%.

Chart for S

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

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