Income Alerts Newsletter for 11/15/2016

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 $189.00 for December 17 2016 are offering a 1.17% return, which annualizes at a rate of 12.98%.

Chart for DIA

The SPY options at strike $217.00 for December 7 2016 are offering a 1.13% return, which annualizes at a rate of 17.93%.

Chart for SPY


Technology Focus: Income Opportunities

A November covered call on QCOM at strike $66.00 using 300 shares is offering an income potential of $225. In December, a strike 67.50 covered call offers $294 and in January, a strike 67.50 covered call offers $570 in premium.

The annualized return by writing covered calls in November is 84.00%, in December is 16.69% and in January is 15.93%.

Chart for QCOM

A November covered call on PCLN at strike $1490.00 using 300 shares is offering an income potential of $6,930. In December, a strike 1490.00 covered call offers $14,220 and in January, a strike 1490.00 covered call offers $26,310 in premium.

The annualized return by writing covered calls in November is 115.02%, in December is 36.36% and in January is 33.59%.

Chart for PCLN


Energy Focus: Income Opportunities

A November covered call on APC at strike $61.00 using 300 shares is offering an income potential of $228. In December, a strike 62.50 covered call offers $540 and in January, a strike 62.50 covered call offers $867 in premium.

The annualized return by writing covered calls in November is 92.87%, in December is 33.92% and in January is 26.93%.

Chart for APC

A November covered call on CVX at strike $107.00 using 300 shares is offering an income potential of $93. In December, a strike 110.00 covered call offers $237 and in January, a strike 110.00 covered call offers $504 in premium.

The annualized return by writing covered calls in November is 21.29%, in December is 8.26% and in January is 8.60%.

Chart for CVX


Healthcare Focus: Income Opportunities

A November covered call on PFE at strike $32.50 using 300 shares is offering an income potential of $84. In December, a strike 33.00 covered call offers $153 and in January, a strike 33.00 covered call offers $228 in premium.

The annualized return by writing covered calls in November is 63.68%, in December is 17.70% and in January is 12.90%.

Chart for PFE

A November covered call on ESRX at strike $76.50 using 300 shares is offering an income potential of $318. In December, a strike 77.50 covered call offers $666 and in January, a strike 77.50 covered call offers $975 in premium.

The annualized return by writing covered calls in November is 102.64%, in December is 33.08% and in January is 23.83%.

Chart for ESRX


Consumer Staples Focus: Income Opportunities

A November covered call on WBA at strike $82.50 using 300 shares is offering an income potential of $90. In December, a strike 82.50 covered call offers $459 and in January, a strike 82.50 covered call offers $837 in premium.

The annualized return by writing covered calls in November is 26.88%, in December is 21.09% and in January is 18.96%.

Chart for WBA


Consumer Discretionary Focus: Income Opportunities

A November covered call on DG at strike $77.00 using 300 shares is offering an income potential of $210. In December, a strike 77.50 covered call offers $705 and in January, a strike 77.50 covered call offers $855 in premium.

The annualized return by writing covered calls in November is 67.27%, in December is 34.98% and in January is 20.73%.

Chart for DG

A November covered call on HD at strike $128.00 using 300 shares is offering an income potential of $513. In December, a strike 130.00 covered call offers $627 and in January, a strike 130.00 covered call offers $960 in premium.

The annualized return by writing covered calls in November is 99.10%, in December is 18.41% and in January is 13.80%.

Chart for HD


Financials Focus: Income Opportunities

A December covered call on BAC at strike $21.00 using 300 shares is offering an income potential of $102. In January, a strike 21.00 covered call offers $177 in premium.

The annualized return by writing covered calls in December is 19.05% and in January is 16.25%.

Chart for BAC

A November covered call on GS at strike $210.00 using 300 shares is offering an income potential of $765. In December, a strike 210.00 covered call offers $1,800 and in January, a strike 210.00 covered call offers $2,445 in premium.

The annualized return by writing covered calls in November is 90.09%, in December is 32.66% and in January is 21.76%.

Chart for GS


Industrials Focus: Income Opportunities

A December covered call on GE at strike $31.00 using 300 shares is offering an income potential of $108. In January, a strike 31.00 covered call offers $183 in premium.

The annualized return by writing covered calls in December is 13.21% and in January is 10.95%.

Chart for GE

A November covered call on UPS at strike $113.00 using 300 shares is offering an income potential of $219. In December, a strike 115.00 covered call offers $309 and in January, a strike 115.00 covered call offers $651 in premium.

The annualized return by writing covered calls in November is 47.50%, in December is 10.18% and in January is 10.52%.

Chart for UPS


Materials Focus: Income Opportunities

A December covered call on PPG at strike $100.00 using 300 shares is offering an income potential of $240. In February, a strike 100.00 covered call offers $720 in premium.

The annualized return by writing covered calls in December is 9.29% and in February is 9.74%.

Chart for PPG

A November covered call on CF at strike $28.50 using 300 shares is offering an income potential of $147. In December, a strike 30.00 covered call offers $249 and in January, a strike 29.00 covered call offers $522 in premium.

The annualized return by writing covered calls in November is 129.09%, in December is 33.54% and in January is 35.30%.

Chart for CF


Utilities Focus: Income Opportunities

A December covered call on CNP at strike $23.00 using 300 shares is offering an income potential of $165. In January, a strike 23.00 covered call offers $240 in premium.

The annualized return by writing covered calls in December is 27.15% and in January is 19.38%.

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 13.00 covered call offers $75 in premium.

The annualized return by writing covered calls in December is 89.52% and in January is 11.92%.

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 $90. In December, a strike 55.00 covered call offers $270 and in January, a strike 55.00 covered call offers $420 in premium.

The annualized return by writing covered calls in November is 40.70%, in December is 18.71% and in January is 14.26%.

Chart for LVLT

A November covered call on TMUS at strike $53.00 using 300 shares is offering an income potential of $174. In December, a strike 55.00 covered call offers $267 and in January, a strike 55.00 covered call offers $492 in premium.

The annualized return by writing covered calls in November is 80.89%, in December is 18.92% and in January is 17.17%.

Chart for TMUS

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

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