Mike Khouw Sees Unusual Bullish Options Activity In Freeport-McMoRan Inc

Mike Khouw spoke on CNBC's Options Action about a bullish options activity in Freeport-McMoRan Inc FCX on Monday. He said that the stock had a very interesting trading session. It opened at its 52-week lows and then it reversed and closed 10.73 percent higher on the news that it is looking to sell up to a billion dollars of common stocks. Khouw noticed a big trade on Monday, a sale of the January 12 / 8 put spread for $1.75. The trader sees Freeport-McMoRan Inc above $12 until the January expiration and he is willing to buy the stock at $12 if it stays below that price. The trade starts to lose money at $10.25 and a maximal loss is $2.25.