Freeport McMoran (FCX) has been rallying lately even as the market sells off. It has formed a very nice ascending triangle pattern and broke out last week. It has pulled back a smidge today and I think it is just resting on its way to 35 this week. This pup has one of the nicer charts out there currently. With the stock at about 32 right now I think it offers a nice entry into a bullish call spread.Buy the March 30/35 FCX call spread. In this trade you buy the 30 call and sell the 35 call for a net debit. You finance a portion of the 30 call with the sale of the 35 call to lower your cost but you also cap your upside once the stock gets over 35.
You can buy the spread for a net debit of 2.45.
Max loss is that original 2.45 if FCX is below 30 at expiration in two weeks.
Your breakeven on this trade at expiration is 32.45.
Max gain is roughly a 100% gain if FCX gets over 35.
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