Income Alerts Newsletter for 11/28/2016

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 1.08% return, which annualizes at a rate of 20.76%.

Chart for QQQ


Technology Focus: Income Opportunities

A December covered call on QCOM at strike $68.50 using 300 shares is offering an income potential of $288. In January, a strike 70.00 covered call offers $360 and in February, a strike 70.00 covered call offers $648 in premium.

The annualized return by writing covered calls in December is 27.39%, in January is 12.09% and in February is 14.54%.

Chart for QCOM

A December covered call on FB at strike $121.00 using 300 shares is offering an income potential of $633. In January, a strike 125.00 covered call offers $687 and in February, a strike 125.00 covered call offers $1,275 in premium.

The annualized return by writing covered calls in December is 29.60%, in January is 12.42% and in February is 15.72%.

Chart for FB


Energy Focus: Income Opportunities

A December covered call on OXY at strike $70.00 using 300 shares is offering an income potential of $417. In January, a strike 70.00 covered call offers $618 and in February, a strike 70.00 covered call offers $804 in premium.

The annualized return by writing covered calls in December is 39.06%, in January is 20.57% and in February is 17.79%.

Chart for OXY

A December covered call on SLB at strike $81.50 using 300 shares is offering an income potential of $444. In January, a strike 82.50 covered call offers $633 and in February, a strike 82.50 covered call offers $789 in premium.

The annualized return by writing covered calls in December is 30.77%, in January is 17.06% and in February is 14.36%.

Chart for SLB


Healthcare Focus: Income Opportunities

A December covered call on PFE at strike $32.00 using 300 shares is offering an income potential of $105. In January, a strike 32.00 covered call offers $210 and in February, a strike 32.00 covered call offers $276 in premium.

The annualized return by writing covered calls in December is 18.53%, in January is 14.46% and in February is 12.84%.

Chart for PFE

A December covered call on MCK at strike $144.00 using 300 shares is offering an income potential of $690. In January, a strike 145.00 covered call offers $1,260 and in February, a strike 145.00 covered call offers $1,860 in premium.

The annualized return by writing covered calls in December is 31.39%, in January is 20.44% and in February is 20.16%.

Chart for MCK


Consumer Staples Focus: Income Opportunities

A January covered call on KO at strike $42.00 using 300 shares is offering an income potential of $141. In February, a strike 42.00 covered call offers $231 in premium.

The annualized return by writing covered calls in January is 7.74% and in February is 8.41%.

Chart for KO

A December covered call on WBA at strike $84.50 using 300 shares is offering an income potential of $450. In January, a strike 85.00 covered call offers $825 and in April, a strike 85.00 covered call offers $1,395 in premium.

The annualized return by writing covered calls in December is 34.75%, in January is 22.76% and in April is 14.67%.

Chart for WBA


Consumer Discretionary Focus: Income Opportunities

A December covered call on GM at strike $34.50 using 300 shares is offering an income potential of $129. In January, a strike 35.00 covered call offers $207 and in March, a strike 35.00 covered call offers $396 in premium.

The annualized return by writing covered calls in December is 21.09%, in January is 13.17% and in March is 12.95%.

Chart for GM

A December covered call on HD at strike $132.00 using 300 shares is offering an income potential of $459. In January, a strike 135.00 covered call offers $489 and in February, a strike 135.00 covered call offers $729 in premium.

The annualized return by writing covered calls in December is 22.60%, in January is 8.48% and in February is 8.38%.

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 $117. In January, a strike 21.00 covered call offers $228 and in February, a strike 21.00 covered call offers $297 in premium.

The annualized return by writing covered calls in December is 31.61%, in January is 24.21% and in February is 21.39%.

Chart for BAC

A December covered call on MET at strike $55.50 using 300 shares is offering an income potential of $384. In January, a strike 57.50 covered call offers $402 and in February, a strike 57.50 covered call offers $588 in premium.

The annualized return by writing covered calls in December is 45.39%, in January is 16.74% and in February is 16.31%.

Chart for MET


Industrials Focus: Income Opportunities

A December covered call on GE at strike $31.50 using 300 shares is offering an income potential of $102. In January, a strike 32.00 covered call offers $129 and in February, a strike 32.00 covered call offers $171 in premium.

The annualized return by writing covered calls in December is 21.00%, in January is 9.37% and in February is 8.22%.

Chart for GE

A December covered call on UPS at strike $117.00 using 300 shares is offering an income potential of $300. In January, a strike 120.00 covered call offers $276 and in April, a strike 120.00 covered call offers $750 in premium.

The annualized return by writing covered calls in December is 14.39%, in January is 5.11% and in April is 5.42%.

Chart for UPS


Materials Focus: Income Opportunities

A December covered call on MON at strike $103.00 using 300 shares is offering an income potential of $81. In January, a strike 105.00 covered call offers $309 and in April, a strike 105.00 covered call offers $975 in premium.

The annualized return by writing covered calls in December is 5.07%, in January is 6.86% and in April is 8.24%.

Chart for MON

A December covered call on DOW at strike $54.50 using 300 shares is offering an income potential of $240. In January, a strike 55.00 covered call offers $300 and in March, a strike 55.00 covered call offers $570 in premium.

The annualized return by writing covered calls in December is 28.79%, in January is 12.71% and in March is 12.06%.

Chart for DOW


Utilities Focus: Income Opportunities

A December covered call on CNP at strike $24.00 using 300 shares is offering an income potential of $105. In January, a strike 24.00 covered call offers $195 and in February, a strike 24.00 covered call offers $210 in premium.

The annualized return by writing covered calls in December is 24.61%, in January is 17.86% and in February is 12.93%.

Chart for CNP

A February covered call on AES at strike $12.00 using 300 shares is offering an income potential of $90. In May, a strike 12.00 covered call offers $165 in premium.

The annualized return by writing covered calls in February is 11.37% and in May is 10.29%.

Chart for AES


Telecommunications Focus: Income Opportunities

A December covered call on VZ at strike $51.00 using 300 shares is offering an income potential of $174. In January, a strike 52.50 covered call offers $117 and in February, a strike 52.50 covered call offers $183 in premium.

The annualized return by writing covered calls in December is 22.24%, in January is 5.24% and in February is 5.42%.

Chart for VZ

A December covered call on T at strike $39.50 using 300 shares is offering an income potential of $117. In January, a strike 40.00 covered call offers $141 and in February, a strike 40.00 covered call offers $201 in premium.

The annualized return by writing covered calls in December is 19.30%, in January is 8.20% and in February is 7.74%.

Chart for T

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

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