Today, 6/13/12, I was assigned 1 Jun12 $15 Put and then sold 1 Jul12 $10 Covered Calls for a net deposit of $37.24 in an IRA account. This transaction represents a simple return of about 2.53% and an annualized return of about 24.29% if held to expiration. My basis for these ANR shares in is now $14.34.
I had been watching the Put that was assigned to me today and had already decided not to roll the contract out. There is more cash flow available by taking the assignment and selling Covered Calls on the shares. In selling the Covered Call I took a chance by selling the July $10 (ANR is selling at $8.51 as I write this) strike which makes me underwater from the start. I am confident that I will be able to roll the Call out and up if ANR appears to be exceeding $10 as the July expiration date approaches.
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 $18 and a Buy recommendation on ANR. MarketEdge has 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 $21.00 and a recommendation of 2.0 where 1.0 is a Strong Buy and 5.0 is a Strong Sell.