Iron Ore Price, page-12735

Mjak
Fmg is very liquid and volatile hence making the derivative sector attractive.I sell call options on my stock and have done for 6 years now.The premiums are huge when compared to banks or say tls for example and so there are many more option series available to be traded.On exercise day the trades close and so any stock in the money changes hands which you will see happen this friday before market open indicated by pre sales..
Once that happens i guess its up to the individual as to whether they sell or keep the stock
Both derivatives tho trade without nevessarily affecting the stock price.The call or put tracks the stock price wheras shorting is trading the physical share thus affecting stock price
Put option are insurance but expensive unless a long way out of the money but with both you need to consider both the time value and intrinsic value
I have all my calls out now for 6.25 and 6.50 and will prob get exercised in jan and march but thats ok as i am happy to move on having made some good money.
What the new owners do with my shares is up to them
Hope this helps
Dont forget the asx website has good info on all this