Big bet that copper mining giant will move at least 10 percent higher by early July.
At least one trader is betting on a 10 percent pop in Freeport McMoRan (FCX) in the next month.
On Thursday, nearly 5,900 contracts traded on July 5th $11 calls. With shares just over $10, they would need to rally nearly $1, or about 10 percent, for these calls to expire in-the-money.
- This Leaked Wall Street Calendar Is Tipping of Repeat Gains
Multi-millionaire Florida hedge fund manager has just released a secret Wall Street calendar that he’s been using to land massive gains on the same stocks on the same dates for an entire decade.
And just by looking at his recent trades…. There’s no signs of this “repeat phenomenon” slowing down…
168.09% on SHW… 60.0% on ATVI… 168.97% on SMG… and TEN others just in the last few months… all going up on the same dates, every year, for an entire decade.
With a prior open interest of 102 in the contract before the trade, this is a big move.
As a copper producer, Freeport is best-in-class. However, copper prices have been weak year-to-date, amidst trade war fears.
In investing circles, copper is often known as Dr. Copper. This is due to its propensity to predict a recession, as falling copper prices reflect reduced demand. Copper is used in nearly every physical industry, from wire and piping to higher-end electronics.
Action to take: Consider a stake in Freeport. A call option with a September date and $11 strike will give you more time for a bounce in copper to play out. But shares could be an interesting long-term buy here as well. New copper supplies are failing to meet up with current demand, and a shortage is likely to develop in the next few years as this trend continues.