Dan Nathan's Freeport-McMoRan Trade

On

, Dan Nathan suggested a bullish options strategy in

. The stock reached its 52-week low on Friday, but it closed the session 2.08 percent higher. Nathan explained that although there is a consensus that the stock is going to struggle into the year end, he believes that it could rebound from its lows. He suggested a risk reversal options strategy to place a bullish bet. Nathan would sell the February 6 put for $0.33 and buy the February 10 call for $0.33. The net cost for the trade would be zero. If the stock drops below $6 at the February expiration, Nathan would have to buy the stock at $6. The trade is going to start to make profits, if the stock jumps above $10.