Freeport McMoran Copper and Gold Inc (FCX) $73.02 +4.20%
Freeport-McMoran (FCX) shares are up $2.80 to $72.90 which would be a new closing 52-week high for the copper and gold miner. Option volume is 2x daily average with 21,000 calls to 7,000 puts. But the flow is not entirely bullish as the most notable trade looks to be a stupid spread in which someone sold the Nov. $75 and $80 calls 10,000 times each. Some of this is potentially rolling of buy-write out of the October $70 and $75 strikes but the gist seems to be to take advantage of the rally and collect some call premium.
Category: All Stocks, Basic Resources, Large Cap Stocks
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Thanks Steve. By “stupid spread” Steve is talking about selling (or buying) of both sides of the spread. So, it really isn’t a spread, but rather simultaneous buying or selling in two different contracts. In this case, 10000 Nov 75 calls sold and 10000 Nov 80 calls also sold. (However, I think this was a sale of a vertical spread and possibly a roll up in strikes — bullish. Will check the open interest tomorrow.)
In any event, keep em coming Steve. Good stuff. Here’s a link to more info about Steve Smith: http://www.minyanville.com/optionsmith/
If you like the action in JDSU – the Oct 6 calls are cheap relative to stock price. I bought a few for 2 buckaroos
Wild action in JDSU today for sure. Very unusual. I’ll wait on that one.
looks like: sold to close the 75s to open the 80s.