Income Alerts Newsletter for 11/11/2016

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 DIA options at strike $188.50 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 $217.00 for December 2 2016 are offering a 0.00% return, which annualizes at a rate of 0.00%.

Chart for SPY


Technology Focus: Income Opportunities

A November covered call on PCLN at strike $1740.00 using 300 shares is offering an income potential of $1,500. In December, a strike 1685.00 covered call offers $1,740 and in January, a strike 1690.00 covered call offers $4,890 in premium.

The annualized return by writing covered calls in November is 14.72%, in December is 3.80% and in January is 5.45%.

Chart for PCLN

A November covered call on MA at strike $105.00 using 300 shares is offering an income potential of $336. In December, a strike 105.00 covered call offers $729 and in January, a strike 105.00 covered call offers $1,005 in premium.

The annualized return by writing covered calls in November is 43.94%, in December is 23.49% and in January is 16.79%.

Chart for MA


Energy Focus: Income Opportunities

A November covered call on HES at strike $50.00 using 300 shares is offering an income potential of $219. In December, a strike 50.00 covered call offers $585 and in January, a strike 50.00 covered call offers $915 in premium.

The annualized return by writing covered calls in November is 60.53%, in December is 40.34% and in January is 33.19%.

Chart for HES

A November covered call on SLB at strike $80.00 using 300 shares is offering an income potential of $270. In December, a strike 80.00 covered call offers $585 and in January, a strike 80.00 covered call offers $960 in premium.

The annualized return by writing covered calls in November is 46.21%, in December is 24.68% and in January is 21.16%.

Chart for SLB


Healthcare Focus: Income Opportunities

A November covered call on MCK at strike $150.00 using 300 shares is offering an income potential of $345. In December, a strike 150.00 covered call offers $1,200 and in January, a strike 150.00 covered call offers $1,530 in premium.

The annualized return by writing covered calls in November is 31.87%, in December is 27.50% and in January is 18.16%.

Chart for MCK

A November covered call on JNJ at strike $120.00 using 300 shares is offering an income potential of $231. In December, a strike 120.00 covered call offers $438 and in January, a strike 120.00 covered call offers $753 in premium.

The annualized return by writing covered calls in November is 26.29%, in December is 12.20% and in January is 10.87%.

Chart for JNJ


Consumer Staples Focus: Income Opportunities

A December covered call on ADM at strike $46.00 using 300 shares is offering an income potential of $261. In January, a strike 46.00 covered call offers $387 in premium.

The annualized return by writing covered calls in December is 19.37% and in January is 14.90%.

Chart for ADM


Consumer Discretionary Focus: Income Opportunities

A November covered call on DG at strike $74.50 using 300 shares is offering an income potential of $270. In December, a strike 75.00 covered call offers $720 and in January, a strike 75.00 covered call offers $900 in premium.

The annualized return by writing covered calls in November is 49.67%, in December is 32.89% and in January is 21.31%.

Chart for DG

A November covered call on GM at strike $33.00 using 300 shares is offering an income potential of $111. In December, a strike 33.00 covered call offers $228 and in January, a strike 33.00 covered call offers $339 in premium.

The annualized return by writing covered calls in November is 46.37%, in December is 23.45% and in January is 18.13%.

Chart for GM


Financials Focus: Income Opportunities

A November covered call on GS at strike $202.50 using 300 shares is offering an income potential of $750. In December, a strike 205.00 covered call offers $1,500 and in January, a strike 205.00 covered call offers $1,710 in premium.

The annualized return by writing covered calls in November is 51.11%, in December is 25.18% and in January is 14.81%.

Chart for GS

A November covered call on WFC at strike $52.50 using 300 shares is offering an income potential of $171. In December, a strike 52.50 covered call offers $315 and in January, a strike 52.50 covered call offers $438 in premium.

The annualized return by writing covered calls in November is 45.27%, in December is 20.48% and in January is 14.75%.

Chart for WFC


Industrials Focus: Income Opportunities

A November covered call on UPS at strike $115.00 using 300 shares is offering an income potential of $102. In December, a strike 115.00 covered call offers $366 and in January, a strike 115.00 covered call offers $645 in premium.

The annualized return by writing covered calls in November is 12.21%, in December is 10.74% and in January is 9.81%.

Chart for UPS

A December covered call on UTX at strike $110.00 using 300 shares is offering an income potential of $318. In January, a strike 110.00 covered call offers $555 in premium.

The annualized return by writing covered calls in December is 9.74% and in January is 8.80%.

Chart for UTX


Materials Focus: Income Opportunities

A November covered call on CF at strike $27.50 using 300 shares is offering an income potential of $234. In December, a strike 30.00 covered call offers $177 and in January, a strike 28.00 covered call offers $525 in premium.

The annualized return by writing covered calls in November is 120.05%, in December is 21.93% and in January is 34.95%.

Chart for CF

A November covered call on DOW at strike $54.50 using 300 shares is offering an income potential of $141. In December, a strike 55.00 covered call offers $288 and in January, a strike 55.00 covered call offers $426 in premium.

The annualized return by writing covered calls in November is 35.51%, in December is 17.80% and in January is 13.65%.

Chart for DOW


Utilities Focus: Income Opportunities

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 6.66%.

Chart for CNP

A December covered call on NRG at strike $12.00 using 300 shares is offering an income potential of $255. In January, a strike 12.00 covered call offers $210 in premium.

The annualized return by writing covered calls in December is 82.05% and in January is 34.22%.

Chart for NRG


Telecommunications Focus: Income Opportunities

A November covered call on LVLT at strike $55.00 using 300 shares is offering an income potential of $105. In December, a strike 55.00 covered call offers $285 and in January, a strike 55.00 covered call offers $465 in premium.

The annualized return by writing covered calls in November is 26.56%, in December is 17.74% and in January is 15.04%.

Chart for LVLT

A January covered call on S at strike $8.00 using 300 shares is offering an income potential of $93.

The annualized return by writing covered calls in January is 23.21%.

Chart for S

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

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