Buy Alert: February 4, 2014

Marcus Haber | February 4, 2014

Buy Alert: February 4, 2014

Trade Details

Buy Freeport-McMoRan Copper & Gold (FCX) March $32 Calls for $1.10 or better

Why?

I know I promised you a put trade in the last update, but I came across an opportunity I don’t want to pass up. We’ll definitely take on more short exposure over the next week. For now, I really like this FCX call trade and want to get it out to you while the options are inexpensive.

FCX has not only been hammered by market conditions, the copper and gold giant has also been hamstrung by the political situation in Indonesia – halting shipments of copper. However, the situation will be resolved. It’s in Indonesia’s best interest to export raw materials. As such, I expect FCX to receive a shipping permit sooner rather than later.

In the meantime, commodity companies are also due for an influx of investor cash as risk appetite changes among investors. FCX is not only a huge player in commodities, but also an extremely affordable stock at current levels.

Grab the March $32 calls now.