Stock / Symbol: [private_monthly]Freeport-McMoran / FCX [/private_monthly]
Price at trade post: $51.35
Option Strategy: call ratio back spread
Max Risk: $896 @ $55 (at Jun expiration)
Max Reward: unlimited
Profit Range: $0 - $50 & $60 + (at Jun expiration)
Reasoning: With earnings coming tomorrow morning before market open, we're structuring at call ratio backspread which will enable us to profit whether the stock moves up, down, or sideways. If [private_monthly]FCX[/private_monthly] really pops with earnings, we're set up to capture unlimited upside. If the stock stays flat or crashes, we'll be able to close out at around break even.
Trade Details:[private_monthly]
STO -2 FCX Jun11 50 Calls
BTO 4 FCX Jun11 55 Calls
for a net credit of $0.50 per contract
Requirements:
Cost/Proceeds ($104.00)
Option Requirement $1,000.00
Total Requirements $896.00
Estimated Commission $12.95
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Chart:[private_monthly]
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