My original put in ARLP expired out of the money.
music selection: “Put Me In Your Lay Away” — Muddy Waters
Alliance Resource Partners is one third of my three part position in high yielding thermal coal. There are a lot of losers in the space but I found three real survivors. ARLP currently yields over 11%. I can do better with options though and am looking to be assigned at a favorable price. On Monday, I sold ARLP160715P00015000 for 45 cents a share. The trade will be in force for 26 days and yields an impressive 42.12% annualized. In addition, the trade enjoys 6.67% downside protection.
The three part position is doing very well. The industry as a whole is in terminal decline but I think there is good money to be made as the survivors wind down to zero. The three tickers are AHGP, ARLP, and CNXC.
Devour your prey raptors!