YieldBoost AMR To 28.8% Using Options
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YieldBoost AMR To 28.8% Using Options
March 16, 2026 — 11:37 am EDT
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Shareholders of Alpha Metallurgical Resources Inc (Symbol: AMR) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the August covered call at the $210 strike and collect the premium based on the $22.30 bid, which annualizes to an additional 27.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 28.8% annualized rate in the scenario where the stock is not called away. Any upside above $210 would be lost if the stock rises there and is called away, but AMR shares would have to advance 13% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 25% return from this trading level, in addition to any dividends collected before the stock was called.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Alpha Metallurgical Resources Inc, looking at the dividend history chart for AMR below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 1.1% annualized dividend yield.
Below is a chart showing AMR's trailing twelve month trading history, with the $210 strike highlighted in red:
The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the August covered call at the $210 strike gives good reward for the risk of having given away the upside beyond $210. (Do most options expire worthless? This and six other common options myths debunked). We calculate the trailing twelve month volatility for Alpha Metallurgical Resources Inc (considering the last 250 trading day closing values as well as today's price of $185.86) to be 59%. For other call options contract ideas at the various different available expirations, visit the AMR Stock Options page of StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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BNK Invest
BNK Invest Inc. provides investment services and information. BNK Invest owns and operates a market news family of websites including DividendChannel, ETFChannel, StockOptionsChannel, and others, which make up an investor community featuring stock message boards, ratings, research, and strategies. BNK Invest caters to investing firms and individual investors internationally.
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