Trade Alert – (FCX) July 31, 2025 – BUY

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.

 

Trade Alert – (FCX) – BUY

BUY the Freeport McMoRan (FCX) August 2025 $34-$37 vertical BULL CALL spread at $2.70 or best

 

Opening Trade

7-31-2025

expiration date: August 15, 2025

Portfolio weighting: 10%

Number of Contracts = 40 contracts

Copper metal prices have crashed by 24% in days. Freeport McMoRan, the world’s largest producer based in Phoenix, Arizona, is down 17%.

The final order on copper tariffs, which came out of the blue, applies to semi-finished products such as pipes, rods, sheets, and wires. It also impacts copper-intensive items like cables and electrical components. But crucially, it does not include the raw input material, copper cathode, copper ores, concentrates, or scraps, as had been widely expected.

However, analysts say that may not be enough to avoid prices for a range of consumer goods containing the metal, from cookware to air conditioning units to plumbing parts, being pushed higher as a result of the tariffs.

I believe we are on the cusp of a golden age for copper, and the size of the power grid has to triple to accommodate the runaway growth of AI. These days, tariffs change daily, so the next adjustment in tariffs may be downward once the lobbyists get to work.

The expiration on this trade is a bit awkward, with only 12 days to go. But the implied volatility is decent at 36%.

Therefore, I am buying the Freeport McMoRan (FCX) August 2025 $34-$37 vertical BULL CALL spread at $2.70 or best

Don’t pay more than $2.75, or you will be chasing.

If you don’t want to sit in front of a computer screen all day or live in a foreign time zone when the US stock market is closed, such as Australia, or don’t want to sit in front of a screen all day, simply enter a spread of Good-Until-Cancelled orders overnight, like  $2.70, $2.71, $2.72, $2.73, and 2.75. You should get done on some or all of these.

This is a bet that the (FCX) will not fall below $37.00 by the August 15 option expiration in 12 trading days.

If you are looking for other long-term copper plays, please take a look at the United States Copper Fund (CPER), First Quantum Minerals Ltd. (FM.TO), Antofagasta (ANTO.L), hang on. We are going much higher once the stock market bottoms.

I have a feeling that Freeport McMoRan is my new rich uncle, cutting me generous but undeserved maintenance checks every month.

Here are the specific trades you need to execute this position:

Buy 40 August 2025 (FCX) $34 calls at………….………$6.00

Sell short 40 August 2025 (FCX) $37 calls at………….$3.30

Net Cost:………………………….………..………….…………..$2.70

Potential Profit: $3.00 – $2.70 = $0.30

(40 X 100 X $0.30) = $1,200 or 11.11% in 12 trading days.

 

 

 

 

 

 

 

If you are uncertain about how to execute an options spread, please watch my training video by clicking here.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep-in-the-money spread trades can be enormous.

Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.