CLF presents rare opportunity for those craving income.
At the current price an income investor could in 2013 receive the $2.50 dividend and also sell the $40 2014 leap for $3.50 for a total of about $6.00 per share income or 17% annualized and still have a potential for 10% capital growth of $3.80 to the $40.
Those kind of numbers don't come around to often. Especially in a stock that appears to be bottoming.
The risk here is if you feel that in Jan. 2014 CLF will be priced lower than $30.
This is a low risk play in my book.
Of course I could be wrong but I don't think so.