Carter Worth And Mike Khouw's Freeport-McMoRan Trade

On CNBC's Options Action, Carter Worth revealed he's bullish on Freeport-McMoRan Inc FCX. He compared its five-year price movement with the performance of CRB Commodities Index and he concluded the index has recovered from its 2014 lows, while Freeport-McMoRan hasn't recovered.

Worth noticed a head and shoulders bottom on Freeport-McMoRan's chart and he also said it has broken above its down trend line. These bullish patterns make him believe the stock is going to catch up with the CRB Commodities Index.

Mike Khouw suggested a bullish options strategy as a way to exploit a potential move higher. He would buy the April 16/19 call spread for $0.90. The trade breaks even at $16.90 or 6.96 percent above the current market price and it can maximally make a profit of $2.10.