Income Alerts Newsletter for 11/16/2016

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 $190.00 for December 9 2016 are offering a 0.78% return, which annualizes at a rate of 11.82%.

Chart for DIA

The SPY options at strike $218.50 for December 7 2016 are offering a 0.94% return, which annualizes at a rate of 15.65%.

Chart for SPY


Technology Focus: Income Opportunities

A November covered call on QCOM at strike $67.00 using 300 shares is offering an income potential of $150. In December, a strike 67.50 covered call offers $372 and in January, a strike 67.50 covered call offers $603 in premium.

The annualized return by writing covered calls in November is 68.85%, in December is 21.58% and in January is 16.91%.

Chart for QCOM

A November covered call on PCLN at strike $1612.50 using 300 shares is offering an income potential of $300. In December, a strike 1665.00 covered call offers $1,200 and in January, a strike 1630.00 covered call offers $6,810 in premium.

The annualized return by writing covered calls in November is 8.13%, in December is 3.15% and in January is 8.51%.

Chart for PCLN


Energy Focus: Income Opportunities

A November covered call on HES at strike $51.00 using 300 shares is offering an income potential of $168. In December, a strike 52.50 covered call offers $423 and in January, a strike 52.50 covered call offers $711 in premium.

The annualized return by writing covered calls in November is 102.14%, in December is 32.70% and in January is 26.78%.

Chart for HES

A November covered call on CVX at strike $109.00 using 300 shares is offering an income potential of $108. In December, a strike 110.00 covered call offers $486 and in January, a strike 110.00 covered call offers $801 in premium.

The annualized return by writing covered calls in November is 30.25%, in December is 17.21% and in January is 13.68%.

Chart for CVX


Healthcare Focus: Income Opportunities

A November covered call on GILD at strike $76.50 using 300 shares is offering an income potential of $225. In December, a strike 77.50 covered call offers $459 and in January, a strike 77.50 covered call offers $789 in premium.

The annualized return by writing covered calls in November is 90.53%, in December is 23.32% and in January is 19.44%.

Chart for GILD


Consumer Discretionary Focus: Income Opportunities

A January covered call on DG at strike $115.00 using 300 shares is offering an income potential of $120.

The annualized return by writing covered calls in January is 2.89%.

Chart for DG

A December covered call on CBS at strike $65.00 using 300 shares is offering an income potential of $78.

The annualized return by writing covered calls in December is 5.19%.

Chart for CBS


Financials Focus: Income Opportunities

A November covered call on MET at strike $54.50 using 300 shares is offering an income potential of $180. In December, a strike 55.00 covered call offers $429 and in January, a strike 55.00 covered call offers $660 in premium.

The annualized return by writing covered calls in November is 101.63%, in December is 30.75% and in January is 22.93%.

Chart for MET

A November covered call on MS at strike $40.50 using 300 shares is offering an income potential of $93. In December, a strike 41.00 covered call offers $276 and in January, a strike 41.00 covered call offers $441 in premium.

The annualized return by writing covered calls in November is 71.27%, in December is 26.85% and in January is 20.78%.

Chart for MS


Industrials Focus: Income Opportunities

A December covered call on GE at strike $31.00 using 300 shares is offering an income potential of $138. In January, a strike 31.00 covered call offers $204 in premium.

The annualized return by writing covered calls in December is 17.32% and in January is 12.32%.

Chart for GE

A November covered call on UTX at strike $108.00 using 300 shares is offering an income potential of $90. In December, a strike 110.00 covered call offers $240 and in January, a strike 110.00 covered call offers $528 in premium.

The annualized return by writing covered calls in November is 25.49%, in December is 8.54% and in January is 9.05%.

Chart for UTX


Materials Focus: Income Opportunities

A February covered call on PPG at strike $105.00 using 300 shares is offering an income potential of $300.

The annualized return by writing covered calls in February is 4.08%.

Chart for PPG

A December covered call on LYB at strike $85.00 using 300 shares is offering an income potential of $420. In January, a strike 85.00 covered call offers $720 in premium.

The annualized return by writing covered calls in December is 19.47% and in January is 16.14%.

Chart for LYB


Utilities Focus: Income Opportunities

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 94.15% and in January is 12.31%.

Chart for NRG


Telecommunications Focus: Income Opportunities

A January covered call on LVLT at strike $60.00 using 300 shares is offering an income potential of $90.

The annualized return by writing covered calls in January is 3.04%.

Chart for LVLT

A November covered call on TMUS at strike $53.50 using 300 shares is offering an income potential of $114.

The annualized return by writing covered calls in November is 87.10%.

Chart for TMUS

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

The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.