Income Alerts Newsletter for 10/11/2016

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 $119.50 for November 4 2016 are offering a 1.21% return, which annualizes at a rate of 17.72%.

Chart for QQQ

The DIA options at strike $183.50 for November 11 2016 are offering a 1.36% return, which annualizes at a rate of 15.47%.

Chart for DIA

The SPY options at strike $216.50 for November 2 2016 are offering a 0.98% return, which annualizes at a rate of 15.48%.

Chart for SPY


Technology Focus: Income Opportunities

An October covered call on QCOM at strike $67.50 using 300 shares is offering an income potential of $264. In November, a strike 67.50 covered call offers $759 and in December, a strike 67.50 covered call offers $831 in premium.

The annualized return by writing covered calls in October is 40.33%, in November is 35.65% and in December is 23.06%.

Chart for QCOM

An October covered call on AAPL at strike $117.00 using 300 shares is offering an income potential of $291. In November, a strike 120.00 covered call offers $630 and in December, a strike 120.00 covered call offers $825 in premium.

The annualized return by writing covered calls in October is 25.64%, in November is 16.92% and in December is 13.11%.

Chart for AAPL


Energy Focus: Income Opportunities

An October covered call on CVX at strike $104.00 using 300 shares is offering an income potential of $345. In November, a strike 105.00 covered call offers $582 and in December, a strike 105.00 covered call offers $711 in premium.

The annualized return by writing covered calls in October is 34.13%, in November is 17.35% and in December is 12.56%.

Chart for CVX

An October covered call on HES at strike $54.50 using 300 shares is offering an income potential of $318. In December, a strike 55.00 covered call offers $915 in premium.

The annualized return by writing covered calls in October is 60.87% and in December is 32.21%.

Chart for HES


Healthcare Focus: Income Opportunities

An October covered call on HCA at strike $76.00 using 300 shares is offering an income potential of $360. In November, a strike 77.50 covered call offers $555 and in December, a strike 77.50 covered call offers $690 in premium.

The annualized return by writing covered calls in October is 48.80%, in November is 22.77% and in December is 16.75%.

Chart for HCA

An October covered call on JNJ at strike $120.00 using 300 shares is offering an income potential of $363. In November, a strike 120.00 covered call offers $585 and in December, a strike 120.00 covered call offers $741 in premium.

The annualized return by writing covered calls in October is 31.03%, in November is 15.10% and in December is 11.30%.

Chart for JNJ


Consumer Staples Focus: Income Opportunities

An October covered call on ADM at strike $43.50 using 300 shares is offering an income potential of $120. In November, a strike 44.00 covered call offers $237 and in December, a strike 44.00 covered call offers $315 in premium.

The annualized return by writing covered calls in October is 28.38%, in November is 17.05% and in December is 13.35%.

Chart for ADM

An October covered call on STZ at strike $175.00 using 300 shares is offering an income potential of $165. In November, a strike 175.00 covered call offers $660 and in January, a strike 175.00 covered call offers $1,530 in premium.

The annualized return by writing covered calls in October is 9.81%, in November is 11.88% and in January is 10.89%.

Chart for STZ


Consumer Discretionary Focus: Income Opportunities

An October covered call on FOXA at strike $34.00 using 300 shares is offering an income potential of $90. In November, a strike 25.00 covered call offers $150 and in January, a strike 25.00 covered call offers $270 in premium.

The annualized return by writing covered calls in October is 37.38%, in November is 14.46% and in January is 11.56%.

Chart for FOXA

An October covered call on CBS at strike $56.00 using 300 shares is offering an income potential of $216. In November, a strike 57.50 covered call offers $315 and in December, a strike 57.50 covered call offers $429 in premium.

The annualized return by writing covered calls in October is 39.81%, in November is 17.47% and in December is 14.14%.

Chart for CBS


Financials Focus: Income Opportunities

An October covered call on WFC at strike $46.00 using 300 shares is offering an income potential of $168. In November, a strike 46.00 covered call offers $291 and in December, a strike 46.00 covered call offers $393 in premium.

The annualized return by writing covered calls in October is 37.78%, in November is 19.71% and in December is 15.86%.

Chart for WFC

An October covered call on GS at strike $172.50 using 300 shares is offering an income potential of $702. In November, a strike 175.00 covered call offers $1,065 and in December, a strike 175.00 covered call offers $1,440 in premium.

The annualized return by writing covered calls in October is 42.20%, in November is 19.31% and in December is 15.47%.

Chart for GS


Industrials Focus: Income Opportunities

An October covered call on UPS at strike $110.00 using 300 shares is offering an income potential of $165. In November, a strike 110.00 covered call offers $510 and in December, a strike 110.00 covered call offers $609 in premium.

The annualized return by writing covered calls in October is 15.42%, in November is 14.43% and in December is 10.18%.

Chart for UPS

An October covered call on DHR at strike $80.00 using 300 shares is offering an income potential of $105. In November, a strike 80.00 covered call offers $240 and in December, a strike 80.00 covered call offers $360 in premium.

The annualized return by writing covered calls in October is 13.67%, in November is 9.43% and in December is 8.36%.

Chart for DHR


Materials Focus: Income Opportunities

An October covered call on DOW at strike $54.00 using 300 shares is offering an income potential of $123. In November, a strike 55.00 covered call offers $240 and in December, a strike 55.00 covered call offers $357 in premium.

The annualized return by writing covered calls in October is 23.47%, in November is 13.82% and in December is 12.18%.

Chart for DOW

An October covered call on HUN at strike $17.00 using 300 shares is offering an income potential of $90. In November, a strike 17.00 covered call offers $300 and in January, a strike 17.00 covered call offers $360 in premium.

The annualized return by writing covered calls in October is 55.34%, in November is 46.84% and in January is 22.86%.

Chart for HUN


Utilities Focus: Income Opportunities

An October covered call on NEE at strike $125.00 using 300 shares is offering an income potential of $165. In November, a strike 125.00 covered call offers $570 and in December, a strike 125.00 covered call offers $735 in premium.

The annualized return by writing covered calls in October is 13.69%, in November is 14.34% and in December is 10.93%.

Chart for NEE


Telecommunications Focus: Income Opportunities

An October covered call on CTL at strike $28.00 using 300 shares is offering an income potential of $135. In November, a strike 28.00 covered call offers $270 and in January, a strike 28.00 covered call offers $345 in premium.

The annualized return by writing covered calls in October is 50.10%, in November is 30.48% and in January is 15.27%.

Chart for CTL

A November covered call on S at strike $7.00 using 300 shares is offering an income potential of $135. In December, a strike 7.00 covered call offers $162 in premium.

The annualized return by writing covered calls in November is 65.08% and in December is 46.83%.

Chart for S

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

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