anyone that is excitable, by posting, if you look at the top right,EDITOR'S PICKS, that guy Roubini has a headline. "Political gridlock" means 2012 will still be in recession. What a govmnt we have, Gimme a break! Even AAPL is down $9, about $100 overpriced. So it's not just our commodities.
The problem with your strategy is two-fold. 1.) If MTL goes to 4 or 5. You will profit on the covered call, which is great, but you may have to sell your stock and simultaneously close the written call. 2.) MTL has a high beta and can open above 10 faster than you can blink. Your shares will gain in value but you will "cover" your option gain, most likely at a loss.
The strategy profits if MTL stays bearish to neutral. Just hope for no 10% up moves. Otherwise, it works perfectly.
look at it this way, this is a solid stock. i been saying for about a month sell covered calls if you worried about price decline in near term. everyone called me nuts to sell $12 dollar calls this month, but look what it brought me. cash in hand to buy more with and sell more calls. bought more at $8.9 with the proceeds of that call write, and sold $10 calls for jan. do i care if taken out?? nope it be a 18% gain on free money in the first place.
lots of ways to play this wacky market, so might as well get used to it.