Buy Alert: April 4, 2014
Buy Alert: April 4, 2014
Trade Details
Buy Freeport-McMoRan Copper & Gold (FCX) May 17th $33 Calls for $1.30 or better
Why?
Long-time readers know that I’m big fan of trading FCX. We’ve had a lot of success trading options on this company in the past – and it looks like another opportunity is upon us.
First off, investors are rotating out of Internet and biotech stocks, among others, and moving into sectors like energy and basic materials. FCX hasn’t gotten quite the same bump as some of the other large names in its sector, and is due. What’s more, China is expecting stimulus from its government to kick start the economy. As the largest consumer of copper in the world, that’s great news for FCX.
The stock may test the 200-day/50-day moving average before moving higher, but I don’t want to take a chance we’ll miss the coming move higher. As such, we’re going to buy the May calls right here.
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Category: OTW Buy Alerts
