This Miner Could Turn Out to Be a Major Winner

Here's why I like Freeport-McMoRan and how you can trade it.
Stocks quotes in this article: FCX

The selling in mining, energy, and materials happened fast. Now that it has happened, some of these names are looking more interesting to me.

One name I like is Freeport-McMoRan (FCX) .

FCX is sitting at its 50-day moving average, kind of doing nothing Wednesday. While we could see a break lower, I have the downside potential to around $28. The potential upside, though? I think we could see FCX run back above $32 a share.

The September $30 calls cost about $1.20, I think those will pay nicely in the next few days, potentially doubling if the market gets a snap rally later in the week.

Trade:

Buy to open 1 FCX Sept. 16 $30 call for $1.20.

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At the time of publication, Sebastian had no positions in any securities mentioned.

TAGS: Investing | Markets | Options | Put Call | Trading | Metals & Mining

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