Maksims Covered Call Options Forum

[maksim]

A few Covered Calls I am looking to get into.

MTL & VIP for those that are not afraid to go overseas

MTL now at $5.77 a share, Write Jan 09 $7.50 for $.80 or so.
15% downside protection, 100% annualized.
Mechel is a steel producer, largest in russia and buying up overseas assets. Too much fear here, for two reasons, steel prices, as well as Russia.

For $5 i am personally happy holding it, even long term. Due to the fact that this is a steel company in russia, it is driven down, and volatility goes through the roof. Buying calls, esp since there are no LEAPS avail, is a bit expensive. Since the stock is cheap, I am happy to buy it at these levels.

It is trading at a PE of 2. Largest steel producer in russia, infrastructure will be built.

Risk? Absolutely. Putin has already fined them for price fixing. =P My strategy is to write monthly calls, to take in the premiums at the fastest rate, and keep lowering my cost basis on the stock.