Today, 6/25/12, I sold 3 Jul12 $9 Covered Calls for a net deposit of $76.72 in an IRA account. This transaction represents a simple return of about 1.68% and an annualized return of about 23.60% if held to expiration. My basis for these ANR shares in is now $14.95.
My three $9 strike weekly Covered Calls on these shares expired worthless last Friday. I had hoped to be able to sell another round of the weekly Calls but ANR had fallen enough, along with the rest of the market and energy stocks in particular, that there was just not enough money in it this time. So, once again, I will need to keep an eye on this one and be prepared to roll it out and up if the $9 strike appears in jeopardy. Although my goal is to have these shares called away, I want to do it with a profit in the string of transactions.
ANR does not pay a dividend so these ANR shares are most definitely a trade and not an investment. S&P has a 12-month price target of $9.50 and a Hold recommendation on ANR. MarketEdge continues a price opinion of $13.16 and an Avoid recommendation. The 23 Yahoo analysts covering ANR are more optimistic with a 12-month price target of $19.74 and a recommendation of 2.0 where 1.0 is a Strong Buy and 5.0 is a Strong Sell. Price targets for ANR have been consistently falling as the global economy, in particularChina, is slowing down. The MarketEdge price opinion was issued on May 14 and may not reflect their current opinion.