REX American Resources Corporation (REX) Covered Calls

REX American Resources is a leading producer of ethanol and co-products, including distillers grains and corn oil. The firm operates several majority-owned ethanol facilities in the Midwest, focusing on efficient production and low-carbon initiatives. By investing in carbon capture and sequestration projects, REX aims to achieve near net-zero status while supporting the renewable energy transition.

You can sell covered calls on REX American Resources Corporation to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for REX (prices last updated Tue 4:16 PM ET):

REX American Resources Corporation (REX) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
34.35 +0.52 31.83 35.55 142K 23 1.1
Covered Calls For REX American Resources Corporation (REX)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Mar 20 35 0.35 35.20 -0.6% -8.8%
Apr 17 35 0.75 34.80 0.6% 4.1%
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REX American Resources (REX) operates as a holding company primarily invested in the production of ethanol and its valuable by-products, such as dried distillers grains with solubles (DDGS) and non-food grade corn oil. The company’s core strategy revolves around operational excellence at its flagship facilities, including the One Earth Energy and NuGen Energy plants. By maintaining majority interests in these high-capacity operations, REX leverages a decentralized management model that empowers local expertise while providing robust corporate capital and strategic oversight.

The company is currently undergoing a transformative pivot toward sustainable energy infrastructure. A centerpiece of this effort is the expansion of the One Earth Energy facility in Illinois, which is on track to increase its production capacity to 200 million gallons per year by late 2026. Complementing this expansion is the "One Earth Carbon Capture" project, which involves the development of Class VI injection wells for carbon sequestration. This initiative is designed to lower the carbon intensity (CI) scores of its ethanol, allowing REX to capture significant tax credits under the Inflation Reduction Act (45Z) and position itself as a premier provider of low-carbon fuel.

Competitive Landscape

The ethanol industry is characterized by high sensitivity to commodity "crush spreads"—the difference between the price of corn and the price of ethanol. REX American Resources competes with large-scale renewable fuel producers such as Green Plains Inc. and Archer-Daniels-Midland Company. In the broader energy and refining space, the firm also rivals PBF Energy Inc. and CVR Energy, Inc..

REX differentiates itself through its exceptionally conservative balance sheet, characterized by zero bank debt and a massive cash reserve of approximately $335 million as of early 2026. This "fortress balance sheet" allows the company to self-fund its $100 million+ expansion projects without diluting shareholders or incurring high-interest debt. Unlike peers that may be over-leveraged, REX’s asset-heavy and cash-rich profile provides it with the agility to navigate volatile grain markets and selectively pursue M&A opportunities that consolidate its position in the Midwest ethanol belt.

Strategic Outlook and Innovation

Strategic priorities for 2026 are dominated by the regulatory approval of its carbon sequestration permits. Following the final EPA Class VI permitting decision expected in June 2026, the company plans to begin active carbon injection, which will significantly de-risk its long-term cash flow profile. The firm enters the year coming off its 21st consecutive quarter of profitability, heading into its March 26, 2026, earnings call with management guiding for sustained margins despite fluctuations in global oil prices. The company is also evaluating "Agentic AI" applications for precision fermentation monitoring to optimize ethanol yields from every bushel of corn.

Looking ahead, REX is prioritizing the diversification of its revenue streams into "Sustainable Aviation Fuel" (SAF) feedstocks, utilizing its high-quality corn oil as a primary input. By integrating advanced filtration and refining tech at its existing plants, the firm aims to capture the premium pricing associated with the aviation industry’s decarbonization mandates. With a recently authorized share repurchase program and a focus on maintaining its status as a low-cost producer, REX is positioning 2026 as the year it evolves from a traditional ethanol refiner into a sophisticated, carbon-negative energy platform.