My old put in AHGP expired out of the money.

weigh-in:  218.6 (0.6)

music selection:  “Lazy Eye” — Silversun Pickups

With ARLP and and CNXC, AHGP is part of a combined income position in thermal coal.  These three coal miners are the survivors of the rout in coal prices and remain profitable and high yielding.  Two of the names have options and allow even more yield.  Today, I sold AHGP160715P00020000 for 65 cents a share.  The trade will be in force for 26 days and yields an impressive 45.63% annualized.  Seriously raptors, that is not a typo.  The trade also enjoys 3.64% downside protection.

My hope is to get assigned and begin collecting the 10+% yield while writing enormously lucrative covered calls against the position.  This is an industry that is in terminal decline but there is still a lot of money to be made of the slow decay of the longest surviving firms.

Devour your prey raptors!

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