Today, 6/18/12, I sold 3 ANR June 22, 2012, $9 weekly Covered Calls for a net deposit of $22.72 in an IRA account.  These transactions represent a simple return of about .50% and an annualized return of about 45.19% with 4 days left to expiration.  My basis for these ANR shares is now $15.21.

These ANR transactions are part of my trading strategy to increase cash flow into my accounts a little faster.  I try to use the weekly options to do this although, I am sometimes forced to resort to monthly options, sometimes with expiration dates a few months out when things do not turn out as I thought they might.  ANR has fallen much further than I expected and continues to fall.  Selling the $9 strike might be a little aggressive with ANR trading at $8.44.  I am confident that I can roll out and up if necessary later this week though.

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 has a price opinion of $13.16 and an Avoid recommendation.  The 23 Yahoo analysts covering ANR have a 12-month price target of $20.97 and a recommendation of 2.0 where 1.0 is a Strong Buy and 5.0 is a Strong Sell.

I have also seen some expectation of increased coal shipments late this year and in 2013 which should be positive for ANR.  The company has been reducing mine output and cutting jobs in some locations.  I am not sure if that is good or bad for ANR but will certainly help reduce some costs and some supply to the market.