When and why do investors and traders use options rather than simply trading the underlying stock? When do circumstances encourage non-linear payoffs? We know sometimes. Consider Cleveland-Cliffs, the Cleveland, Ohio-based steel company. By market capitalization, a common measure of size, the company's equity ranks 824th in the Russell 1000 large-cap index. By enterprise value, which reflects the business's overall value, not just equity value, the rank climbs to 613. CLF is the 276th-largest employer in the Russell 1000 and ranked 229th by revenue. By those metrics, then we’re looking at one of the larger publicly traded companies in the country.
