On Friday, ANR seemed to settle in (for now) around the $55 level.
Sold the January 2012 $57.50 calls against the lot owned for just over $8.
In its purist form, this covered call caps the profits on the first lot to 19% ($55 purchase price,plus $2.50 cap gain, plus $8 option gain) for the year, while lowering the break even point on the downside to $47. This also provides some hedge against the short put position for the other lot. So overall this lowers the risk on the position and if need be can stand on its own as a logical trade.
However, the real intent of the trade was to raise capital some of which can hopefully be used to acquire some shorter-term calls on the stock upon any pullback in price or volatility. If that can be done, the resulting portfolio will have a more leveraged, lower risk play on this volatile stock that I still think can be dragged up by an increase in the coal market.