Trade Alert – (FCX) – BUY

Trade Alert – (FCX) – BUY

BUY the Freeport McMoRan (FCX) January 2027 $35-$38 out-of-the-money vertical Bull Call spread LEAPS at $1.50 or best

Opening Trade

9-26-2025

expiration date: January 15, 2027

Number of Contracts = 1 contract

There is nothing like adding a LEAPS on a day when the stock is down 15.8%.

That is the case with Freeport McMoRan today. Freeport McMoRan halted exports of copper from Indonesia, knocking the stock down 10%. Indonesia accounts for about 4% of the company’s total copper production.

It temporarily halted mining in Indonesia’s Grasberg mine after a large flow of wet material blocked access to parts of its underground mine, restricting evacuation routes for seven workers. The incident occurred late on Monday at one of the five production blocks in the Grasberg Block Cave underground mine in Central Papua, the company said.

If you are looking for a lottery ticket, then here is a lottery ticket.

While the chance of winning a real lottery is something like a million to one, this one is more like 2:1 in your favor.

You may not have noticed, but we have just entered the golden age of copper. The US grid has to triple in size just to accommodate current AI demands for electricity.

Each EV will need 200 pounds of copper, and Freeport McMoRan is the world’s largest copper producer. It is also the world’s largest producer of molybdenum and owns some of the world’s largest gold mines.

The company’s output will have to increase by at least 500% over the next eight years to accommodate projected copper demand. (FCX) has also been especially accommodating in that its shares have just dropped by 52% over the last 6 months.

To learn more about the company, please visit their website at https://www.fcx.com

I am therefore buying the Freeport McMoRan (FCX) January 2027 $35-$38 out-of-the-money vertical Bull Call spread LEAPS at $1.50 or best.

Don’t pay more than $2.00, or you’ll be chasing on a risk/reward basis.

Please note that these options are illiquid, and it may take some work to get in or out. Start at my price and work your way up until you get done. Executing these trades is more of an art than a science.

Let’s say the Freeport McMoRan (FCX) January 2027 $35-$38 out-of-the-money vertical Bull Call spread LEAPS at $1.50 are showing a bid/offer spread of $1.25-$1.75, which is normal. Enter an order for one contract at $1.50, another for $1.60, another for $1.70, and so on. Eventually, you will enter a price that gets filled immediately. That is the real price. Then enter an order for your full position at that real price.

Notice that the day-to-day volatility of LEAPS prices is minuscule since the time value is so great. This means that the day-to-day moves in your P&L will be small. It also means you can buy your position over the course of a month, just entering new orders every day. I know this can be tedious, but getting screwed by overpaying for a position is even more tedious.

Look at the math below, and you will see that no rise in (FCX) shares will generate a 100% profit with this position, such is the wonder of LEAPS. In other words, the stock doesn’t have to move at all for you to make the maximum 100% profit on this trade.

Only use a limit order. DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES. Just enter a limit order and work it until you find the real price.

This is a bet that Freeport McMoRan will close above $38 by the January 15, 2027, option expiration in 1 year and 4 months.

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

Buy 1 January 2027 (FCX) $35 calls at………….……..$8.70

Sell short 1 January 2027 (FCX) $38 calls at…………$7.20

Net Cost:…………………………….………..………….……….$1.50

Potential Profit: $3.00 – $1.50 = $1.50

(1 X 100 X $1.50) = $150 or 2X in 1 year and 4 months.

 

 

To see how to enter this trade in your online platform, please look at the order ticket below, which I pulled off of Interactive Brokers.

If you are uncertain about how to execute an options spread, please watch my training video on “How to Execute a Vertical Bull Call Debit Spread” 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.