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Kevin Cook wrote a great article on copper last week, citing real industrial demand as a support catalyst for copper prices. If that is the case, Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) should see moderate support in its stock price, which has been sideways for the past nine days. If you agree with this thesis, ONN.tv’s Idea Generating Platform (IGP) found an in-the-money (ITM) bull call spread in April.
FCX Debit Spread Trade Detail
FCX is currently trading at $79.13, down 1.7% this morning.
Debit Spread/Bull Call Spread -
A free virtual trading account can help you visualize the maximum profit, maximum loss, and breakeven level for this trade.
Maximum risk: $4.10 (the debit paid at the time of the trade) plus commissions.
Maximum potential profit: $0.90 (the difference between strike prices -5 – minus the debit). Return on risk is 22% in 35 days.
Breakeven: $74.10 (the strike price of the purchased call plus the debit paid).
Remember, trading Ideas are generated by the ONN Idea Generating Platform as a starting point for people to begin their own research. Trading ideas are not intended as trading or investment advice or recommendations that any particular security or strategy may be suitable for any specific person. You are solely responsible for your investment decisions, but we hope that some of these ideas will give you a starting point as you look for strategies to employ.
For more on FCX:
Copper as PhD, Iron as Undergrad
Bullish outlook in Freeport-McMoRan
Higher returns with less capital. It’s called leverage and options have it—stocks don’t. Learn more:
Two Traders, One Strategy Steve and Jared take a look at risk management strategies on the OH platform.
Navigating OptionsHouse Get to know the OH platform and all the tools you have at your disposal.
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