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Mike Khouw Likes Freeport-McMoRan Inc

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On CNBC's Options Action, Mike Khouw said that he noticed on Friday unusually high options volume in Freeport-McMoRan Inc (NYSE: FCX). Three times average daily call options volume was traded and the most active were the January 30 call options.

Somebody bought 10,000 contracts of the January 30 call options for $1, making $1 million dollar bet that Freeport-McMoRan is going higher. Khouw would follow this trade and he thinks that it is better to use options in cases like this one, because it is very hard to predict a bottom for a stock.

Carter Worth commented that he would also play for a bounce in commodities, but instead of Freeport-McMoRan he would buy iShares S&P GSCI Commodity-Indexed (ETF) (NYSE: GSG).

 

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Posted-In: Carter Worth CNBC Mike KhouwOptions Markets Media Trading Ideas