Sell Alert: April 9, 2013

Marcus Haber | April 9, 2013

Sell Alert: April 9, 2013

Trade Details

Sell Freeport-McMoRan (FCX) April 2013 $34 Calls for $0.45 or better

Why?

Well, FCX finally had the bounce we’ve been waiting for. The shares are rallying after positive earnings news from Alcoa (AA). Stronger than expected global demand for basic materials implies other materials stocks, like FCX, could beat estimates this quarter.

Here’s the thing…

While we’ve finally reached our strike price, we’re up against significant pressure from time decay. If the shares don’t continue to rally above $34, we won’t make any money on our calls. As such, let’s go ahead and sell our FCX options while they have most of their value intact. We’re not going to take a chance of these things going to zero.