Income Alerts Newsletter for 10/25/2016

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 $120.00 for November 19 2016 are offering a 1.18% return, which annualizes at a rate of 16.51%.

Chart for QQQ

The DIA options at strike $182.00 for November 19 2016 are offering a 1.20% return, which annualizes at a rate of 16.79%.

Chart for DIA

The SPY options at strike $215.00 for November 16 2016 are offering a 1.15% return, which annualizes at a rate of 18.23%.

Chart for SPY


Technology Focus: Income Opportunities

A November covered call on QCOM at strike $70.00 using 300 shares is offering an income potential of $423. In December, a strike 70.00 covered call offers $522 and in January, a strike 70.00 covered call offers $651 in premium.

The annualized return by writing covered calls in November is 29.70%, in December is 17.73% and in January is 13.51%.

Chart for QCOM

A November covered call on GOOG at strike $815.00 using 300 shares is offering an income potential of $6,390. In December, a strike 815.00 covered call offers $7,590 and in January, a strike 820.00 covered call offers $8,340 in premium.

The annualized return by writing covered calls in November is 37.76%, in December is 21.71% and in January is 14.52%.

Chart for GOOG


Energy Focus: Income Opportunities

A November covered call on OXY at strike $77.50 using 300 shares is offering an income potential of $222. In December, a strike 77.50 covered call offers $369 and in January, a strike 77.50 covered call offers $516 in premium.

The annualized return by writing covered calls in November is 13.98%, in December is 11.27% and in January is 9.62%.

Chart for OXY

A November covered call on HAL at strike $49.00 using 300 shares is offering an income potential of $276. In December, a strike 49.00 covered call offers $459 and in January, a strike 49.00 covered call offers $633 in premium.

The annualized return by writing covered calls in November is 27.29%, in December is 22.14% and in January is 18.76%.

Chart for HAL


Healthcare Focus: Income Opportunities

A November covered call on HCA at strike $82.50 using 300 shares is offering an income potential of $600. In December, a strike 82.50 covered call offers $780 and in January, a strike 82.50 covered call offers $1,020 in premium.

The annualized return by writing covered calls in November is 35.22%, in December is 22.21% and in January is 17.80%.

Chart for HCA


Consumer Staples Focus: Income Opportunities

A November covered call on KO at strike $43.00 using 300 shares is offering an income potential of $141. In December, a strike 43.00 covered call offers $174 and in January, a strike 43.00 covered call offers $237 in premium.

The annualized return by writing covered calls in November is 15.68%, in December is 9.34% and in January is 7.76%.

Chart for KO

A November covered call on CVS at strike $90.00 using 300 shares is offering an income potential of $306. In January, a strike 90.00 covered call offers $678 and in February, a strike 90.00 covered call offers $843 in premium.

The annualized return by writing covered calls in November is 16.46%, in January is 10.81% and in February is 10.29%.

Chart for CVS


Consumer Discretionary Focus: Income Opportunities

A November covered call on HD at strike $130.00 using 300 shares is offering an income potential of $462. In December, a strike 130.00 covered call offers $669 and in January, a strike 130.00 covered call offers $915 in premium.

The annualized return by writing covered calls in November is 17.13%, in December is 12.01% and in January is 10.03%.

Chart for HD

A November covered call on FOXA at strike $26.00 using 300 shares is offering an income potential of $150. In January, a strike 26.00 covered call offers $285 and in April, a strike 26.00 covered call offers $435 in premium.

The annualized return by writing covered calls in November is 28.00%, in January is 15.82% and in April is 12.19%.

Chart for FOXA


Financials Focus: Income Opportunities

A November covered call on WFC at strike $46.00 using 300 shares is offering an income potential of $135. In December, a strike 46.00 covered call offers $249 and in January, a strike 46.00 covered call offers $387 in premium.

The annualized return by writing covered calls in November is 14.02%, in December is 12.55% and in January is 11.96%.

Chart for WFC

A November covered call on AXP at strike $67.50 using 300 shares is offering an income potential of $336. In December, a strike 67.50 covered call offers $516 and in January, a strike 67.50 covered call offers $747 in premium.

The annualized return by writing covered calls in November is 23.83%, in December is 17.78% and in January is 15.81%.

Chart for AXP


Industrials Focus: Income Opportunities

A November covered call on UPS at strike $110.00 using 300 shares is offering an income potential of $270. In December, a strike 110.00 covered call offers $393 and in January, a strike 110.00 covered call offers $585 in premium.

The annualized return by writing covered calls in November is 11.75%, in December is 8.26% and in January is 7.51%.

Chart for UPS

A November covered call on DHR at strike $82.50 using 300 shares is offering an income potential of $75. In December, a strike 82.50 covered call offers $195 and in January, a strike 82.50 covered call offers $330 in premium.

The annualized return by writing covered calls in November is 4.38%, in December is 5.52% and in January is 5.70%.

Chart for DHR


Materials Focus: Income Opportunities

A November covered call on FCX at strike $11.00 using 300 shares is offering an income potential of $75. In December, a strike 11.00 covered call offers $141 and in January, a strike 11.00 covered call offers $201 in premium.

The annualized return by writing covered calls in November is 35.34%, in December is 32.72% and in January is 28.89%.

Chart for FCX

A January covered call on CF at strike $26.00 using 300 shares is offering an income potential of $504. In February, a strike 30.00 covered call offers $228 in premium.

The annualized return by writing covered calls in January is 29.11% and in February is 9.64%.

Chart for CF


Utilities Focus: Income Opportunities

A November covered call on DUK at strike $80.00 using 300 shares is offering an income potential of $165. In December, a strike 80.00 covered call offers $285 and in January, a strike 80.00 covered call offers $435 in premium.

The annualized return by writing covered calls in November is 9.92%, in December is 8.29% and in January is 7.73%.

Chart for DUK

A November covered call on NEE at strike $125.00 using 300 shares is offering an income potential of $585. In December, a strike 125.00 covered call offers $795 and in January, a strike 125.00 covered call offers $1,020 in premium.

The annualized return by writing covered calls in November is 22.36%, in December is 14.71% and in January is 11.53%.

Chart for NEE


Telecommunications Focus: Income Opportunities

A November covered call on SBAC at strike $120.00 using 300 shares is offering an income potential of $255. In December, a strike 120.00 covered call offers $540 and in January, a strike 120.00 covered call offers $675 in premium.

The annualized return by writing covered calls in November is 10.44%, in December is 10.73% and in January is 8.17%.

Chart for SBAC

A November covered call on CTL at strike $29.00 using 300 shares is offering an income potential of $135. In January, a strike 29.00 covered call offers $240 and in April, a strike 29.00 covered call offers $345 in premium.

The annualized return by writing covered calls in November is 22.67%, in January is 11.92% and in April is 8.58%.

Chart for CTL

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

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