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
132.31	151.00	133.89	-6.58	339K	15	2.5B

ARCH Dividend-Like Income Using Covered Calls

With ARCH at 133.89, 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%	4.02	1.1
5%	6.69	1.8
10%	13.39	3.7

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
Aug 15	155.00	5.00	218	2.3	4.00 (3.0%)
May 16	155.00	1.50	127	1.2	4.00 (3.0%)

5% Yield On ARCH Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	155.00	5.00	218	2.3	4.00 (3.0%)
Dec 19	155.00	8.50	344	2.5	4.00 (3.0%)

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