Income Alerts Newsletter for 11/08/2016

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 DIA options at strike $182.50 for December 2 2016 are offering a 0.00% return, which annualizes at a rate of 0.00%.

Chart for DIA

The SPY options at strike $213.50 for November 30 2016 are offering a 0.00% return, which annualizes at a rate of 0.00%.

Chart for SPY


Technology Focus: Income Opportunities

A December covered call on GOOG at strike $885.00 using 300 shares is offering an income potential of $150. In January, a strike 845.00 covered call offers $870 in premium.

The annualized return by writing covered calls in December is 0.60% and in January is 1.83%.

Chart for GOOG

A November covered call on PCLN at strike $1710.00 using 300 shares is offering an income potential of $195. In December, a strike 1495.00 covered call offers $9,060 and in January, a strike 1490.00 covered call offers $15,750 in premium.

The annualized return by writing covered calls in November is 1.46%, in December is 19.49% and in January is 18.14%.

Chart for PCLN


Energy Focus: Income Opportunities

A November covered call on EOG at strike $97.50 using 300 shares is offering an income potential of $144.

The annualized return by writing covered calls in November is 17.14%.

Chart for EOG

A November covered call on APC at strike $60.50 using 300 shares is offering an income potential of $432.

The annualized return by writing covered calls in November is 81.30%.

Chart for APC


Healthcare Focus: Income Opportunities

A November covered call on JNJ at strike $117.00 using 300 shares is offering an income potential of $327. In December, a strike 120.00 covered call offers $174 and in January, a strike 120.00 covered call offers $372 in premium.

The annualized return by writing covered calls in November is 28.69%, in December is 4.56% and in January is 5.23%.

Chart for JNJ

A November covered call on HCA at strike $80.00 using 300 shares is offering an income potential of $690. In December, a strike 80.00 covered call offers $840 and in January, a strike 80.00 covered call offers $1,080 in premium.

The annualized return by writing covered calls in November is 90.48%, in December is 33.26% and in January is 23.05%.

Chart for HCA


Consumer Staples Focus: Income Opportunities

A November covered call on KO at strike $42.50 using 300 shares is offering an income potential of $123. In December, a strike 43.00 covered call offers $105 and in January, a strike 43.00 covered call offers $180 in premium.

The annualized return by writing covered calls in November is 29.66%, in December is 7.58% and in January is 6.98%.

Chart for KO

A November covered call on PM at strike $97.50 using 300 shares is offering an income potential of $294. In December, a strike 97.50 covered call offers $552 and in January, a strike 97.50 covered call offers $648 in premium.

The annualized return by writing covered calls in November is 30.94%, in December is 17.58% and in January is 11.05%.

Chart for PM


Consumer Discretionary Focus: Income Opportunities

A December covered call on DG at strike $77.50 using 300 shares is offering an income potential of $90. In January, a strike 115.00 covered call offers $120 in premium.

The annualized return by writing covered calls in December is 4.04% and in January is 2.84%.

Chart for DG

A November covered call on GM at strike $32.50 using 300 shares is offering an income potential of $123. In December, a strike 33.00 covered call offers $132 and in January, a strike 33.00 covered call offers $234 in premium.

The annualized return by writing covered calls in November is 39.45%, in December is 12.71% and in January is 12.15%.

Chart for GM


Financials Focus: Income Opportunities

A January covered call on BAC at strike $18.00 using 300 shares is offering an income potential of $90.

The annualized return by writing covered calls in January is 8.74%.

Chart for BAC

A November covered call on MET at strike $48.00 using 300 shares is offering an income potential of $246. In December, a strike 50.00 covered call offers $174 and in January, a strike 50.00 covered call offers $336 in premium.

The annualized return by writing covered calls in November is 52.90%, in December is 11.17% and in January is 11.63%.

Chart for MET


Industrials Focus: Income Opportunities

A November covered call on UTX at strike $104.00 using 300 shares is offering an income potential of $249. In December, a strike 105.00 covered call offers $348 and in January, a strike 105.00 covered call offers $621 in premium.

The annualized return by writing covered calls in November is 24.70%, in December is 10.39% and in January is 9.98%.

Chart for UTX

A November covered call on DHR at strike $80.00 using 300 shares is offering an income potential of $75. In December, a strike 80.00 covered call offers $270 and in January, a strike 80.00 covered call offers $375 in premium.

The annualized return by writing covered calls in November is 9.76%, in December is 10.62% and in January is 7.91%.

Chart for DHR


Materials Focus: Income Opportunities

A November covered call on DOW at strike $54.00 using 300 shares is offering an income potential of $189. In December, a strike 55.00 covered call offers $252 and in January, a strike 55.00 covered call offers $375 in premium.

The annualized return by writing covered calls in November is 36.14%, in December is 14.51% and in January is 11.61%.

Chart for DOW


Utilities Focus: Income Opportunities

A November covered call on NEE at strike $125.00 using 300 shares is offering an income potential of $435. In December, a strike 125.00 covered call offers $690 and in January, a strike 125.00 covered call offers $930 in premium.

The annualized return by writing covered calls in November is 35.80%, in December is 17.15% and in January is 12.41%.

Chart for NEE

A January covered call on CNP at strike $24.00 using 300 shares is offering an income potential of $90.

The annualized return by writing covered calls in January is 6.26%.

Chart for CNP


Telecommunications Focus: Income Opportunities

A November covered call on LVLT at strike $52.50 using 300 shares is offering an income potential of $180. In December, a strike 52.50 covered call offers $360 and in January, a strike 52.50 covered call offers $495 in premium.

The annualized return by writing covered calls in November is 35.55%, in December is 21.58% and in January is 15.97%.

Chart for LVLT

A November covered call on TMUS at strike $50.50 using 300 shares is offering an income potential of $207.

The annualized return by writing covered calls in November is 46.10%.

Chart for TMUS

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

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