YieldBoost ARCH To 7.3% Using Options

Shareholders of Arch Resources Inc (ARCH) looking to boost their income beyond the stock's 0.7% annualized dividend yield can sell the December 2025 covered call at the $165 strike and collect the premium based on the $11.00 bid, which annualizes to an additional 6.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.3% annualized rate in the scenario where the stock is not called away. Any upside above $165 would be lost if the stock rises there and is called away, but ARCH shares would have to climb 21.2% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 29.3% return from this trading level, in addition to any dividends collected before the stock was called.