tsla

Call Traders Should Keep Tabs on This Mining Stock

The stock looks ripe for a short squeeze, as well

May 24, 2024 at 1:45 PM
facebook X logo linkedin


Subscribers to Schaeffer's Weekend Trader options recommendation service received this FCX commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

Freeport-McMoRan Inc (NYSE:FCX) stock hit multi-year highs last week, after a bullish cup-and-handle breakout above $51.40-$51.70. This area is 1.5 times multiple 2023 closing lows, as well as its June 2022 peak, and provided pressure since early April. The equity is also trading above a trendline connecting peaks from 2009, 2011, and 2022 on the monthly chart, and on Friday touched its 10-day moving average, from where it rallied after a breakout in March.

FCX Chart April 032024

The security also looks ripe for a short squeeze. Short interest is currently at levels not seen since January 2023, after a 40% increase since the start of the year. There’s also room for potential upgrades, as shares are up over 50% in the last 12 months and have so far doubled the S&P 500 Index's (SPX) year-to-date return.
 
It’s worth noting that implied volatility (IV) for the shares is in line with 63-day historical volatility (HV). Our recommended July 50 call has a leverage ratio of 7.00, and will double on a 13.7% pop in the underlying security.

 

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.