Freeport McMoran Copper and Gold Inc (FCX) $34.20 +0.88%
Freeport McMoran (FCX) is up 22 cents to $34.12 and, after trending lower for several months, is up 6.6 percent so far in June. One player in the options market seems concerned that the gains won’t hold, as morning trades on the gold and copper company include a big buyer of July 28 puts on the stock. A buyer swept 15,000 contracts for 37 cents each, according to a source on CBOE. 31,200 now traded against 2,856 in open interest. July 28 puts on FCX are 17.9 percent OTM with a -.11 delta and expiring in 35 days. The stock has not traded south of $28 per share since July 2010. It appears to be some real “disaster insurance” on FCX being opened today.
Category: All Stocks, Basic Resources, Large Cap Stocks
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About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.
