37% 1 Day Gain In Freeport McMoRan
Mar 29, 2010 Options, Trading Idea
This morning, with the Dow Jones Industrials opening up about 40 points, which was even higher than pre-market indicators were suggesting, it looked like we would be getting yet another up day in stocks.
With the bullish signal, we sent out an alert at 9:49 AM to subscribers of our Options Capitalist service, with a recommendation to buy the Freeport McMoRan (FCX) Apil 80 calls. We got in at $2.90, when the stock was up $1.75 on the day. We just sent out an exit alert at 2:48 PM, after the calls hit $3.90.
The stock, which is now up $3.73 to $82.90 on the day, a further $0.30 gain from where we exited, is currently the second best performer among S&P 500 stocks, behind Intuitive Surgical (ISRG), which is gaining $5.65 to $347.65.
On a technical basis, we may see a bit more upside, but unless the broader stock market makes some big moves, or there is a huge gain in the dollar, we should see some resistance at $84. So depending on market fundamentals in the next couple days, we may actually try to make this a round trip and buy puts in Freeport McMoRan this week, in a bid to capture more profits on a downside move in the stock.
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Tags: dow jones, FCX, freeport mcmoran, intuitive surgical, ISRG
