March 25, 2025
Buy the Freeport McMoRan (FCX) November 43 Call (exp. 11/21) for $6 or less.
Somewhat quietly amidst the market meltdown of recent week there’s been a surge higher in commodity stocks, led more recently by copper. This brings me to …
Call buying activity in Freeport-McMoRan (FCX), a leading copper play (with some gold and silver exposure as well), has surged higher in recent weeks including these trades:
3/14 – Buyer of 60,000 FCX May 45 Calls for $0.90 – Stock at 39
3/19 – Buyer of 85,000 FCX May 50 Calls for $0.40 – Stock at 40.5
Yesterday – Buyer of 65,000 FCX May 50 Calls for $0.50 – Stock at 42
Today – Buyer of 5,000 FCX May 50 Calls for $0.50 – Stock at 42.
This call buying, as well as recent strength in the stock and the sector, is very intriguing and I’m going to get involved today via a November call buy.
To execute this trade you need to:
Buy to Open the FCX November 43 Call
The most you can lose on this trade is the premium paid, or $600 per call purchased.
The risks I see in this trade are pretty straightforward …
The market is still suspect, and if it were to fall, FCX will likely fall with it.
Commodity stocks can get hot and then cold very quickly, and if the global economy shows more signs of slowing down on tariffs, or for any reason, FCX’s recent rally could fail.
That being said, if FCX is just getting going to the upside and if the buyer of 155,000 May 50 calls is right about a big move higher, to pay $6 for a call with nine months until expiration is a great risk/reward.
| Position | FCX November 43 Call |
| Position Strategy | Buy Call |
| Opened Date | March 25, 2025 |
| Expiration | November 2021 |
| Net Price | 6 |
| Strike | 43 |
