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.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

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

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

More from Options

'Exchange' Risk for the Security of This Defensive Fund

Bret Jensen

Let's look at this health care exchange-traded fund and how to trade it.

The Frenzy of Options Expiration Day Reminds Us: Time Really Is Money

Bob Lang

Let's see why this day sets the table for big volatility.

Let's Step Closer to the Money With This Stock

Paul Price

Caleres, despite a little trip down, is among my 'Dandy Dozen' stocks, let's see why.

My Trade Amid SVB's Fall? An 'Insurance Policy' on BofA I Hope Doesn't Pay Off

Bret Jensen

I bought a small number of July puts on Bank of America, after the fall of Silicon Valley Bank. Here's why and why I don't necessarily hope it works.

Jobs Data Smells Funny, but Not International Flavors & Fragrances

Paul Price

At the request of a subscriber, here's my take on IFF and how to play it, and on the jobs numbers that come in Friday.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight