FMG 3.23% $18.87 fortescue ltd

Iron ore price, page-2601

  1. 96 Posts.
    lightbulb Created with Sketch. 3
    Hey Tbo just curious about this strategy
    If your downside exposure is 1.5miion -2million per month and you are doing this multiple months do you write them every month or do you have them stacked multiple months ahead to achieve your premium. What's the total downside exposure??
    Isn't this picking up pennies on a railway.
    Don't get me wrong I'm very long this stock and Have been happy to buy dips which is same as if you get called or whatever the terminology is...BUT there are multiple downside scenarios after all this is the real world where I would not be a happy camper to buy (cyclone ruining infrastructure/ww3/china crash)
    There is no such thing as free money. If you have that much capital could you not just have invested in diversified portfolio and live stress free (although less fun)

    Also when the price rallies hard are you more nervous writing ?

    Actually just curious how this trading strategy works with downside risk
    Haven't post posted here for a while but just curious how it all works
    Thanks in advance
 
watchlist Created with Sketch. Add FMG (ASX) to my watchlist
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.