Iron ore price, page-32073

Look. Many people on here try to justify their position- some just do it ad nauseum. Your position is that you want to play it safe. That's fine.
So, you take a premium of a few bucks, and for that you potentially give up a part of the upside, if FMG re-rates.

Your covered call strategy means that if the sp rockets up above the strike price, before you can roll your call, then you will end up having to sell your stock and miss the full gain, for however many covered calls you have written. That almost happened recently, with the $1.80 intra day gain, but lucky for you, the sp didn't just keep going, and fell back, and you could theoretically have writtten another covered call at around the same strike price. Your strategy also means that it will always seem like you are talking down FMG- because of the looming expiration dates on your calls.

So far, you have been lucky, and have able to keep rolling your calls, but FMG has been re-rated a few times recently. That is why I am sitting on a 200% gain on my original position (plus dividends)- many others here have done far, far better.

But it's fine- as I mentioned previously, this is the iron ore thread. It's about the iron ore price. There is a TA thread, and I would have thought a TA approach like writing covered calls probably belongs there, as it really is justified, as you know, by close chart analysis.


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