Trade Alert

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) – EXPIRATION AT MAX PROFIT

EXPIRATION of the Freeport McMoRan (FCX) August 2025 $34-$37 vertical BULL CALL spread at $3.00 or best

Closing Trade

8-15-2025

expiration date: August 15, 2025

Portfolio weighting: 10%

Number of Contracts = 40 contracts

Just to be clear, this position does not expire until 4:15 PM today, Friday, August 15.

As a result, you get to take home $1,200 or 11.11% in 12 trading days. Well done, and on to the next trade.

You don’t have to do anything with this expiration.

Your broker will automatically use your long position to cover your short position, canceling out the total holdings.

The entire profit will be credited to your account on Monday morning, August 18, and the margin freed up.

Some firms charge you a modest $10 or $15 fee for performing this service. The flight of money right now is from small, undercapitalized, and questionable to large, overcapitalized, and rock-solid balance sheets.

Copper metal prices crashed by 24% in the days when we put on this trade. Freeport McMoRan, the world’s largest producer based in Phoenix, Arizona, was 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%.

This was a bet that (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), and 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 close out this position:

EXPIRATION of 40 August 2025 (FCX) $34 calls at………………$8.28

EXPIRATION of short 40 August 2025 (FCX) $37 calls at………$5.28

Net Proceeds:………………………….………..…………..….……………..$3.00

Profit: $3.00 – $2.70 = $0.30

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