FMG 0.98% $17.17 fortescue ltd

Iron ore price, page-2630

  1. 1,184 Posts.
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    "if SP goes up, the seller doesn‘t make any money." - If share price goes up tbo holds on to the full premium and can even exit early by buying back the puts cheap to retain close to full premium. So tbo is very happy in this scenario.

    "He can only sell puts if SP goes down, why do you think the seller is always negative on FMG" - He can sell puts all the time, up down or sideways. Selling puts is bullish, why would the seller be negative???

    "Don‘t believe you can make money both ways, it‘s not true." - It is. If price rises full premium is kept. If price falls but not past his strikes, full premium is kept. If falls past the strikes, then full premium is kept PLUS he acquires the stock at a discount price.

    "a seller of put is just a "shorter" who is always negative" - if there were a Guinness World Records for ignorant statements this one would be a shoe in. The exact opposite of this is true. If price always goes down, put sellers get burnt.
 
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$17.17
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12 18883 $17.17
 

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$17.18 5599 15
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