Income Alerts Newsletter for 11/18/2016

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 December 9 2016 are offering a 1.21% return, which annualizes at a rate of 20.11%.

Chart for QQQ

The DIA options at strike $189.00 for December 17 2016 are offering a 0.00% return, which annualizes at a rate of 0.00%.

Chart for DIA

The SPY options at strike $219.00 for December 7 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 QCOM at strike $67.50 using 300 shares is offering an income potential of $312. In January, a strike 67.50 covered call offers $561 in premium.

The annualized return by writing covered calls in December is 19.28% and in January is 16.20%.

Chart for QCOM

A November covered call on PCLN at strike $1617.50 using 300 shares is offering an income potential of $210. In December, a strike 1710.00 covered call offers $405 and in January, a strike 1635.00 covered call offers $6,390 in premium.

The annualized return by writing covered calls in November is 16.90%, in December is 1.12% and in January is 8.14%.

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 $138. In December, a strike 52.50 covered call offers $432 and in January, a strike 52.50 covered call offers $717 in premium.

The annualized return by writing covered calls in November is 167.77%, in December is 35.71% and in January is 27.90%.

Chart for HES

A November covered call on APC at strike $61.50 using 300 shares is offering an income potential of $183. In December, a strike 62.50 covered call offers $612 and in January, a strike 62.50 covered call offers $930 in premium.

The annualized return by writing covered calls in November is 182.98%, in December is 41.78% and in January is 29.83%.

Chart for APC


Healthcare Focus: Income Opportunities

A November covered call on ESRX at strike $76.50 using 300 shares is offering an income potential of $108. In December, a strike 77.50 covered call offers $456 and in January, a strike 77.50 covered call offers $801 in premium.

The annualized return by writing covered calls in November is 86.36%, in December is 24.68% and in January is 20.32%.

Chart for ESRX


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 2.98%.

Chart for DG

A November covered call on CMCSA at strike $68.50 using 300 shares is offering an income potential of $84. In December, a strike 70.00 covered call offers $246 and in January, a strike 70.00 covered call offers $372 in premium.

The annualized return by writing covered calls in November is 74.92%, in December is 14.74% and in January is 10.35%.

Chart for CMCSA


Financials Focus: Income Opportunities

A November covered call on MET at strike $54.50 using 300 shares is offering an income potential of $90. In December, a strike 55.00 covered call offers $396 and in January, a strike 55.00 covered call offers $639 in premium.

The annualized return by writing covered calls in November is 101.09%, in December is 30.22% and in January is 22.86%.

Chart for MET

A November covered call on WFC at strike $52.50 using 300 shares is offering an income potential of $141. In December, a strike 52.50 covered call offers $432 and in January, a strike 52.50 covered call offers $657 in premium.

The annualized return by writing covered calls in November is 164.89%, in December is 34.32% and in January is 24.45%.

Chart for WFC


Industrials Focus: Income Opportunities

A December covered call on UTX at strike $110.00 using 300 shares is offering an income potential of $207. In January, a strike 110.00 covered call offers $447 in premium.

The annualized return by writing covered calls in December is 7.92% and in January is 7.95%.

Chart for UTX

A December covered call on UPS at strike $115.00 using 300 shares is offering an income potential of $291. In January, a strike 115.00 covered call offers $591 in premium.

The annualized return by writing covered calls in December is 10.49% and in January is 9.92%.

Chart for UPS


Materials Focus: Income Opportunities

A December covered call on DOW at strike $55.00 using 300 shares is offering an income potential of $141. In January, a strike 55.00 covered call offers $234 in premium.

The annualized return by writing covered calls in December is 10.81% and in January is 8.33%.

Chart for DOW

A December covered call on HUN at strike $20.00 using 300 shares is offering an income potential of $90. In January, a strike 20.00 covered call offers $195 in premium.

The annualized return by writing covered calls in December is 19.35% and in January is 19.72%.

Chart for HUN


Utilities Focus: Income Opportunities

A January covered call on CNP at strike $24.00 using 300 shares is offering an income potential of $120.

The annualized return by writing covered calls in January is 9.84%.

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 102.87% and in January is 12.96%.

Chart for NRG


Telecommunications Focus: Income Opportunities

A December covered call on T at strike $38.00 using 300 shares is offering an income potential of $141. In January, a strike 38.00 covered call offers $186 in premium.

The annualized return by writing covered calls in December is 15.48% and in January is 9.46%.

Chart for T

A November covered call on TMUS at strike $53.50 using 300 shares is offering an income potential of $114. In December, a strike 55.00 covered call offers $246 and in January, a strike 55.00 covered call offers $483 in premium.

The annualized return by writing covered calls in November is 130.82%, in December is 18.98% and in January is 17.46%.

Chart for TMUS

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

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