How to use stock options to both leverage AND hedge your positions to maximize your profits while minimizing your risks.

Most coal related stocks have not had the best of times the past few years! ACI, BTU, CLF ​(just to mention a few) are down over 85% from their highs.

December E-mini S&Ps this morning are down -0.07% after IBM missed on Q3 revenue estimates and European stocks are down-1.28% as SAP SE dropped over 5% after it cut its full-year profit forecast and Royal Philips slid over 4% after it reported Q3 sales and profits that were weaker-than-expected.

This is the chart of a company that completely blew its opportunity to benefit from the commodities supercycle.

How, you may wonder? Well, two ways: Back in October of 2007, before Alibaba IPO'd in China, I was touting the company when it had an $8Bn valuation ($1.10 per share – pre-split).

Given that Cliffs' profitability depends on the pricing of iron ore, the company will face tough times. Nevertheless, Cliff is an excellent company; the firm will be able to capture significant profits when the industry fundamentals improve.