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.


Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.

Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!