Freeport-McMoRan Inc. (FCX) Bulls Want Some More

It's been an impressive couple of days for Freeport-McMoRan Inc (FCX)

Digital Content Group
Mar 23, 2015 at 2:03 PM
facebook twitter linkedin

Freeport-McMoRan Inc (NYSE:FCX) is carrying over its momentum from Friday -- following news the firm's Grasberg mine in Indonesia resumed operations -- adding 3.4% to trade at $19.03. As such, options bulls are rushing in, with calls crossing at three times what's normally seen at this point in the day. Speculators are taking an interest in the weekly 3/27 20-strike call, with data from the International Securities Exchange (ISE) suggesting buy-to-open activity. These traders are betting on the shares to top $20 by this Friday's close, when the options expire. FCX's intraday high sits at $19.32.

Widening the scope, puts have been the options of choice among the equity's speculators. FCX's Schaeffer's put/call open interest ratio (SOIR) of 1.45 indicates that put open interest outnumbers call open interest among options with a life span of three months or less. Additionally, this ratio is higher than 93% of similar readings from the past 52 weeks, meaning short-term options traders are more put-skewed than normal.

Looking to the Street, nine analysts with coverage on the stock have issued "buy" or better ratings. The remaining six brokerage firms covering the shares deem them a "hold." FCX's average 12-month price target, meanwhile, comes in at $25.53, territory it hasn't seen since mid-December.

Speaking of which, outside of the past two sessions, Freeport-McMoRan Inc (NYSE:FCX) has been in a downtrend for a while now. In fact, the shares have trailed the S&P 500 Index (SPX) by over 20 percentage points during the past 60 sessions, and shed roughly two-fifths of their value over the past 52 weeks..


Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!