Bet on shares heading higher into the spring.
Over 7,180 contracts traded on the Freeport McMoRan (FCX) May 2020 $13 call option, a six-fold surge in volume.
The trade, with shares currently around $11, is a bet on another $2 rally in the coming months—or another 18 percent gain from current levels.
- This Industry is Exploding Faster Than It Has in 15 Years
1,700 people are moving to Central Florida every week.
And the numbers are only increasing as more and more people are banking the end of the pandemic drawing near.
And one company, which just received critical approval to list on a prestigious public exchange, could be on the verge of going on a huge run.
Such a move is possible, as the 52-week high for shares is closer to $15 rather than $13. With shares starting to head higher in recent weeks, the trade looks like a profitable one.
With the option buyer paying around $0.63, or $63 per contract, they’ll need to see shares closer to $14 before making money on the trade at expiration. The copper company faces some challenges, but could surge higher as global slowdown fears subside.
Action to take: We still like shares of the company at these prices, where investors can get a global leader in the copper mining space at a reasonable discount. Copper prices may be low now, but production is starting to lag demand, and an eventual shortage of the metal is likely. Shares are a buy up to $12.
For a shorter-term bet, this May trade fits the profile for a great swing trade—long enough to play out, cheap enough to double or triple, and one that could be a runaway winner if shares are as well.