Mesabi Trust (MSB) Covered Calls
Mesabi Trust (MSB) is a passive royalty trust that derives its income from iron ore mining operations at the Northshore Mine in Minnesota. The trust receives royalties from Cleveland-Cliffs Inc., which operates the mine and processes the ore into pellets. In 2026, Mesabi continues to be a high-yield, albeit volatile, income vehicle, with distributions tied directly to iron ore production volumes and global commodity prices.
You can sell covered calls on Mesabi Trust 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 MSB (prices last updated Fri 4:16 PM ET):
| Mesabi Trust (MSB) Stock Quote | ||||||
|---|---|---|---|---|---|---|
| Last | Change | Bid | Ask | Volume | P/E | Market Cap |
| 30.29 | -0.52 | 29.89 | 32.00 | 61K | 23 | 0.4 |
| Covered Calls For Mesabi Trust (MSB) | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Net Debit | Return If Flat |
Annualized Return If Flat |
|
| May 15 | 30 | 0.90 | 31.10 | -3.5% | -44.1% | |
| Jun 18 | 30 | 1.40 | 30.60 | -2.0% | -11.6% | |
| Subscribers get access to the full covered call chain, and more features. | ||||||
Want to make money with covered calls? Sign Up For A Free Trial
Core Business and Products
Mesabi Trust (MSB) holds overriding royalty interests in the Peter Mitchell Mine on the Mesabi Range. It collects royalties from Cleveland-Cliffs Inc. (CLF) based on the production and sale of iron ore pellets. Following the resolution of major litigation in 2025, the trust has returned to a regular distribution schedule, though payouts remain sensitive to CLF’s internal supply chain shifts and global iron ore pricing.
Competitive Landscape
MSB is a pure-play bet on the U.S. steel industry’s raw material needs. It competes for income-focused investors against other commodity trusts. Its primary risk remains its single-customer concentration with Cleveland-Cliffs. In the options market, MSB is used by traders to hedge against industrial cyclicality.
- Cleveland-Cliffs Inc.: The operator of the mine and the trust’s sole source of revenue; the most vital peer for risk monitoring.
- Nucor Corporation: The largest and most diversified U.S. steelmaker; a high-liquidity benchmark for the sector with a robust options chain.
- Vale S.A.: A global iron ore giant that provides the international price context for Mesabi’s underlying commodity.
- Rio Tinto Group: A diversified global mining peer that influences iron ore supply and pricing dynamics.
- Steel Dynamics, Inc.: A highly efficient domestic steel peer and a frequent benchmark for industrial royalty valuations.
Strategic Outlook and Innovation
The 2026 outlook for Mesabi Trust is "Operational Stability." With the transition of the U.S. steel industry toward "Green Steel" and Electric Arc Furnaces (EAFs), demand for high-grade iron ore pellets remains resilient. While the trust is a passive vehicle, it benefits from CLF’s technological upgrades at the Northshore facility. For covered call writers, the primary catalyst remains the quarterly production reports, which dictate the cash available for the next distribution.
| Top 10 Open Interest For May 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV covered calls | 6. | GLD covered calls | 1. | CMPX covered calls | |
| 2. | NVDA covered calls | 7. | HYG covered calls | 2. | FRMI covered calls | |
| 3. | TLT covered calls | 8. | QQQ covered calls | 3. | AXTI covered calls | |
| 4. | IBIT covered calls | 9. | KWEB covered calls | 4. | STNE covered calls | |
| 5. | SPY covered calls | 10. | EEM covered calls | 5. | CLF covered calls | |
Want more examples? MSA Covered Calls | MSBI Covered Calls
Risk Disclosure: Trading options involves significant risk and is not suitable for all investors. The information provided on this website is for educational and informational purposes only and does not constitute financial, investment, tax, or legal advice. Nothing contained on this site is an offer to buy or sell, or a solicitation of an offer to buy or sell, any securities or financial instruments.
Covered Call Strategy Risks: While covered call writing is often considered a conservative options strategy, it is not without risk. By selling a covered call, you are limiting your potential upside profit from the underlying stock. You remain exposed to the full downside risk of owning the underlying stock. In the event of a significant decline in the stock price, the premium received may not be sufficient to offset your losses.
No Guarantee of Performance: Past performance is not indicative of future results. Any examples, calculations, or hypothetical scenarios presented on this site are for illustrative purposes only and do not guarantee future returns or outcomes. Market conditions, liquidity, and trading system failures can affect your ability to execute trades at desired prices.
You should consult with a qualified professional advisor and conduct your own due diligence before making any investment decisions. By using this website, you acknowledge that you are responsible for your own investment decisions and agree to release this site and its affiliates from any liability relating to your use of this information. See the OCC's Characteristics and Risks of Standardized Options for more info.
