Stock / Symbol: Freeport McMoran / FCX
Option Strategy: [private_monthly]calendar call spread[/private_monthly]
Price at trade post: $39.80
Reasoning: With FCX looking like it has technically [private_monthly]put in a bottom, we're going with a 42 strike calendar call spread. We'll look to exit the trade once we're up about 25% - 30%, along the way to April expiration.[/private_monthly]
Trade Details:[private_monthly]
BTO 4 FCX Aug12 42 Calls
STO -4 FCX Apr12 42 Calls
for a net debit of $1.78 per contract (day order, limit order)
Requirements:
Cost/Proceeds $716
Option Requirement $0
Total Requirements $716
Estimated Commission $12.95
[/private_monthly]
Max Risk: $716
Max Reward: $500 or 70% by Apr 20
Profit Range: $39.10 to $45.25 on Apr 20
Max Profit at: $42
Suggested upside stop: $44.00
Suggested downside stop: $37.30
[/private_monthly]
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