No. of Recommendations: 0
One option might be to sell and put back part of the proceeds into long
term LEAPS while investing the rest elsewhere. Jan 2015 18 LEAPS are
around $5 today. If the iron ore market recovers before then, these
should likely do quite well and will capture most of the upside while
limiting your downside. Long term calls are generally cheap nowadays due
to the low interest rates.

I myself have faced some losses on VALE, MT and RIO but have doubled down
using a few cheap LEAPS which I can afford to lose. However, do keep in
mind that it is quite probable that the LEAPs will expire worthless and
I only like them because of the risk/reward ratio. For eg., even if CLF
recovers back to 33 in 2 yrs time (hardly implausible), the calls would
have tripled in value.
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