Michael Khouw's Freeport-McMoRan (FCX) Trade

By Craig Jones
Benzinga Staff Writer
March 06, 2010 5:17 PM

Symbols: FCX

Posted in: CNBC, Options, Media, Trading Ideas

CNBC's Option Action Michael Khouw recommends an options strategy against a long position in Freeport-McMoRan (NYSE: FCX).

He wants to sell one May 85 call for $3.60. Freeport-McMoRan (FCX) closed on Friday at $80.71 and if it rallies above $88.60 you will have to sell the stock. If you don't get called away you will keep the premium and have a downside protection of approximately 4.5%.

< Previous
Doug Kass Is Bearish On Asset Managers (BEN, TROW, AB, FII, JNS)

Next >
Jim Cramer Likes NLY, Dislikes AMAT, BX,

Printer-friendly version

Send to friend

We're Loving

The Money Conversation Your Family Can't Delay Having

Insiders Are Selling These Two Radio Stocks

You Could Have Profited 14% on AOL by Using Benzinga Pro. Try It for Free Now!

The Most Dangerous States to Drive In

Cramer: Lehman Case 'Is a Travesty of Justice'

Benzinga's Premium Memberships

Options & Volatility Edge

Options & Volatility Edge is for those people who want to make money using cost effective options trading strategies. This product is for anyone—novices and experts. If you understand how to enter an options trade, you need Options & Volatility Edge.

Learn More >>
14 Day Free Trial!

Basic Premium
ETF Professor

The ETF Professor is truly an appropriate moniker, because the Professor spends hours everyday analyzing the charts of dozens of ETFs EVERY DAY.

Learn More >>
14 Day Free Trial!

Basic Premium
Winning Stocks

Winning Stocks tracks and analyzes attractive stocks that are poised to make great returns for the average investor. Investors receive the right information at the right time, which provides them with the possibility for great gains and the potential to beat the market.

Learn More >>
14 Day Free Trial!

Basic Premium

Real-Time Rumors

In this game, information is everything. You have to know what is happening before the Street begins trading against you utilizing the new information. We will provide you with that edge.

Learn More >>
14 Day Free Trial!

Basic Premium
Chart-Caster

From novice to pro, Chart-Caster delivers over $11,000 per month* in profitable trade setups across all time-frames from which members can evaluate, select, and replicate within their own trading accounts.

Learn More >>
14 Day Free Trial!

Basic Premium

Michael Khouw's Freeport-McMoRan (FCX) Trade

Benzinga's Premium Memberships

More stories by Craig Jones

From Benzinga's Newsdesk

Benzinga's News Delivered Free

Latest from Premium

Brain Trust

Popular Channels

Tools & Features

About Benzinga

Social