Income Alerts Newsletter for 10/28/2016

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 $118.00 for November 19 2016 are offering a 1.43% return, which annualizes at a rate of 22.67%.

Chart for QQQ


Technology Focus: Income Opportunities

A November covered call on QCOM at strike $70.50 using 300 shares is offering an income potential of $564. In December, a strike 72.50 covered call offers $504 and in January, a strike 72.50 covered call offers $663 in premium.

The annualized return by writing covered calls in November is 43.74%, in December is 17.58% and in January is 13.82%.

Chart for QCOM

A November covered call on AAPL at strike $115.00 using 300 shares is offering an income potential of $474. In December, a strike 115.00 covered call offers $807 and in January, a strike 115.00 covered call offers $1,125 in premium.

The annualized return by writing covered calls in November is 22.21%, in December is 17.22% and in January is 14.37%.

Chart for AAPL


Energy Focus: Income Opportunities

A November covered call on OXY at strike $74.00 using 300 shares is offering an income potential of $504. In December, a strike 75.00 covered call offers $501 and in January, a strike 75.00 covered call offers $726 in premium.

The annualized return by writing covered calls in November is 36.97%, in December is 16.57% and in January is 14.39%.

Chart for OXY

A November covered call on HAL at strike $48.00 using 300 shares is offering an income potential of $348. In December, a strike 48.00 covered call offers $534 and in January, a strike 49.00 covered call offers $618 in premium.

The annualized return by writing covered calls in November is 39.68%, in December is 27.83% and in January is 19.22%.

Chart for HAL


Healthcare Focus: Income Opportunities

A November covered call on GILD at strike $76.00 using 300 shares is offering an income potential of $726. In December, a strike 77.50 covered call offers $687 and in January, a strike 77.50 covered call offers $900 in premium.

The annualized return by writing covered calls in November is 52.36%, in December is 22.30% and in January is 17.50%.

Chart for GILD

A November covered call on HCA at strike $80.00 using 300 shares is offering an income potential of $465. In December, a strike 80.00 covered call offers $765 and in January, a strike 80.00 covered call offers $1,080 in premium.

The annualized return by writing covered calls in November is 31.63%, in December is 23.78% and in January is 20.18%.

Chart for HCA


Consumer Staples Focus: Income Opportunities

A November covered call on ADM at strike $43.50 using 300 shares is offering an income potential of $249. In December, a strike 44.00 covered call offers $273 and in January, a strike 44.00 covered call offers $423 in premium.

The annualized return by writing covered calls in November is 31.18%, in December is 15.44% and in January is 14.36%.

Chart for ADM

A November covered call on WBA at strike $82.50 using 300 shares is offering an income potential of $357. In December, a strike 82.50 covered call offers $582 and in January, a strike 82.50 covered call offers $915 in premium.

The annualized return by writing covered calls in November is 23.32%, in December is 17.31% and in January is 16.36%.

Chart for WBA


Consumer Discretionary Focus: Income Opportunities

A November covered call on FOXA at strike $26.50 using 300 shares is offering an income potential of $150. In December, a strike 27.00 covered call offers $165 and in January, a strike 27.00 covered call offers $240 in premium.

The annualized return by writing covered calls in November is 30.98%, in December is 15.40% and in January is 13.42%.

Chart for FOXA

A November covered call on CBS at strike $56.50 using 300 shares is offering an income potential of $405. In December, a strike 57.50 covered call offers $474 and in January, a strike 57.50 covered call offers $654 in premium.

The annualized return by writing covered calls in November is 38.91%, in December is 20.62% and in January is 17.06%.

Chart for CBS


Financials Focus: Income Opportunities

A November covered call on WFC at strike $46.50 using 300 shares is offering an income potential of $183. In December, a strike 47.00 covered call offers $264 and in January, a strike 47.00 covered call offers $384 in premium.

The annualized return by writing covered calls in November is 21.14%, in December is 13.83% and in January is 12.04%.

Chart for WFC

A November covered call on AXP at strike $67.00 using 300 shares is offering an income potential of $357. In December, a strike 67.50 covered call offers $465 and in January, a strike 67.50 covered call offers $708 in premium.

The annualized return by writing covered calls in November is 28.73%, in December is 16.97% and in January is 15.51%.

Chart for AXP


Industrials Focus: Income Opportunities

A November covered call on DHR at strike $80.00 using 300 shares is offering an income potential of $150. In December, a strike 80.00 covered call offers $300 and in January, a strike 80.00 covered call offers $465 in premium.

The annualized return by writing covered calls in November is 10.20%, in December is 9.25% and in January is 8.57%.

Chart for DHR

A November covered call on BA at strike $144.00 using 300 shares is offering an income potential of $624. In December, a strike 145.00 covered call offers $843 and in January, a strike 145.00 covered call offers $1,200 in premium.

The annualized return by writing covered calls in November is 23.37%, in December is 14.31% and in January is 12.19%.

Chart for BA


Materials Focus: Income Opportunities

A November covered call on CF at strike $25.00 using 300 shares is offering an income potential of $288. In December, a strike 25.00 covered call offers $489 and in January, a strike 25.00 covered call offers $552 in premium.

The annualized return by writing covered calls in November is 64.64%, in December is 50.94% and in January is 34.42%.

Chart for CF

A November covered call on FCX at strike $11.00 using 300 shares is offering an income potential of $108. In December, a strike 11.00 covered call offers $189 and in January, a strike 11.00 covered call offers $258 in premium.

The annualized return by writing covered calls in November is 55.31%, in December is 44.82% and in January is 37.13%.

Chart for FCX


Utilities Focus: Income Opportunities

A November covered call on DUK at strike $80.00 using 300 shares is offering an income potential of $150. 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 10.18%, in December is 8.78% and in January is 8.00%.

Chart for DUK

A November covered call on NEE at strike $130.00 using 300 shares is offering an income potential of $120. In December, a strike 130.00 covered call offers $285 and in January, a strike 130.00 covered call offers $510 in premium.

The annualized return by writing covered calls in November is 5.09%, in December is 5.48% and in January is 5.85%.

Chart for NEE


Telecommunications Focus: Income Opportunities

A November covered call on LVLT at strike $52.50 using 300 shares is offering an income potential of $525. In December, a strike 52.50 covered call offers $690 and in January, a strike 52.50 covered call offers $750 in premium.

The annualized return by writing covered calls in November is 55.41%, in December is 33.21% and in January is 21.49%.

Chart for LVLT

A November covered call on SBAC at strike $120.00 using 300 shares is offering an income potential of $225. In December, a strike 115.00 covered call offers $1,110 and in January, a strike 115.00 covered call offers $1,260 in premium.

The annualized return by writing covered calls in November is 10.45%, in December is 23.86% and in January is 16.14%.

Chart for SBAC

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

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