Income Alerts Newsletter for 11/23/2016

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 $119.00 for December 17 2016 are offering a 0.00% return, which annualizes at a rate of 0.00%.

Chart for QQQ

The DIA options at strike $190.50 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 $221.00 for December 14 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 $68.50 using 300 shares is offering an income potential of $324. In January, a strike 70.00 covered call offers $420 and in February, a strike 70.00 covered call offers $660 in premium.

The annualized return by writing covered calls in December is 23.45%, in January is 12.73% and in February is 13.80%.

Chart for QCOM

A December covered call on FB at strike $122.00 using 300 shares is offering an income potential of $720. In January, a strike 125.00 covered call offers $837 and in February, a strike 125.00 covered call offers $1,440 in premium.

The annualized return by writing covered calls in December is 29.43%, in January is 14.30% and in February is 17.06%.

Chart for FB


Energy Focus: Income Opportunities

A January covered call on OXY at strike $97.50 using 300 shares is offering an income potential of $600.

The annualized return by writing covered calls in January is 18.39%.

Chart for OXY

An April covered call on EOG at strike $120.00 using 300 shares is offering an income potential of $138.

The annualized return by writing covered calls in April is 1.18%.

Chart for EOG


Healthcare Focus: Income Opportunities

A February covered call on MCK at strike $220.00 using 300 shares is offering an income potential of $150.

The annualized return by writing covered calls in February is 1.49%.

Chart for MCK


Consumer Staples Focus: Income Opportunities

An April covered call on WBA at strike $105.00 using 300 shares is offering an income potential of $75.

The annualized return by writing covered calls in April is 0.73%.

Chart for WBA

A January covered call on STZ at strike $185.00 using 300 shares is offering an income potential of $90. In April, a strike 185.00 covered call offers $480 in premium.

The annualized return by writing covered calls in January is 1.19% and in April is 2.51%.

Chart for STZ


Consumer Discretionary Focus: Income Opportunities

A December covered call on GM at strike $34.00 using 300 shares is offering an income potential of $129. In January, a strike 34.00 covered call offers $282 and in March, a strike 34.00 covered call offers $462 in premium.

The annualized return by writing covered calls in December is 18.81%, in January is 17.40% and in March is 15.02%.

Chart for GM

A February covered call on HD at strike $160.00 using 300 shares is offering an income potential of $174.

The annualized return by writing covered calls in February is 1.87%.

Chart for HD


Financials Focus: Income Opportunities

A December covered call on GS at strike $212.50 using 300 shares is offering an income potential of $1,185. In January, a strike 215.00 covered call offers $1,695 and in April, a strike 215.00 covered call offers $3,345 in premium.

The annualized return by writing covered calls in December is 27.84%, in January is 16.73% and in April is 13.48%.

Chart for GS

A January covered call on MS at strike $46.00 using 300 shares is offering an income potential of $72.

The annualized return by writing covered calls in January is 3.68%.

Chart for MS


Industrials Focus: Income Opportunities

A December covered call on GE at strike $31.50 using 300 shares is offering an income potential of $75. In January, a strike 32.00 covered call offers $114 and in February, a strike 32.00 covered call offers $156 in premium.

The annualized return by writing covered calls in December is 11.80%, in January is 7.51% and in February is 7.03%.

Chart for GE

A December covered call on UTX at strike $107.00 using 300 shares is offering an income potential of $504. In January, a strike 110.00 covered call offers $381 and in February, a strike 110.00 covered call offers $609 in premium.

The annualized return by writing covered calls in December is 23.30%, in January is 7.31% and in February is 8.03%.

Chart for UTX


Materials Focus: Income Opportunities

A February covered call on PPG at strike $110.00 using 300 shares is offering an income potential of $75.

The annualized return by writing covered calls in February is 1.09%.

Chart for PPG

A January covered call on CF at strike $37.00 using 300 shares is offering an income potential of $102.

The annualized return by writing covered calls in January is 7.50%.

Chart for CF


Utilities Focus: Income Opportunities

An April covered call on D at strike $80.00 using 300 shares is offering an income potential of $75.

The annualized return by writing covered calls in April is 0.83%.

Chart for D

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

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