ARCH Dividend Type Payments
Although ARCH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Arch Resources, Inc. Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
Arch Resources, Inc. Class A (ARCH) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
131.50 |
160.56 |
145.80 |
+1.24 |
163K |
11 |
2.6B |
ARCH Dividend-Like Income Using Covered Calls
With ARCH at 145.80, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:
Annual Yield |
Annual Premium |
Cents/Day |
3% |
4.37 |
1.2 |
5% |
7.29 |
2.0 |
10% |
14.58 |
4.0 |
So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:
3% Yield On ARCH Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 15 |
160.00 |
1.95 |
36 |
3.9 |
0.00 (0.0%) |
May 16 |
160.00 |
9.30 |
218 |
4.0 |
0.00 (0.0%) |
5% Yield On ARCH Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 15 |
160.00 |
1.95 |
36 |
3.9 |
0.00 (0.0%) |
May 16 |
160.00 |
9.30 |
218 |
4.0 |
0.00 (0.0%) |
10% Yield On ARCH Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 16 |
160.00 |
9.30 |
218 |
4.0 |
0.00 (0.0%) |
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