Trade Alert - (FCX) April 15, 2015
As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price.
Trade Alert - (FCX) ? TAKE INSTANT PROFITS!
SELL the Freeport McMoRan (FCX) May, 2015 $16-$17 deep in-the-money vertical call spread at $0.98 or best
Closing Trade
4-15-2015
expiration date: May 15, 2015
Portfolio weighting: 10%,
Number of Contracts = 125 contracts
This has been one of the most profitable Trade Alerts I have ever issued, taking in an eye popping 22.5% profit in one day.
At current prices, we have already harvested 90% of the potential profit in this position. There is no point in carrying the position on for another month just to capture the last 10%.
So I am going to take profits on the Freeport McMoRan (FCX) May, 2015 $16-$17 deep in-the-money vertical call spread. It is better to free up the cash here and roll the money into another (FCX) position with higher strike prices.
For the many readers who just signed up for my service this week, welcome to the club! You have just scored a home run on your first trade!
It seems that the moment I sent out my Trade Alert to buy (FCX), the entire world suddenly agreed with me that if the Chinese and Hong Kong stocks have suddenly caught fire, then it can only mean one thing.
The Chinese economy is recovering and price of copper is about to rise, and so are the shares of the world?s largest copper producer, Freeport McMoRan (FCX).
That?s the way it goes sometimes.
We are now in fast market conditions, so prices are all over the map. Put in a limit order to sell at $0.98. If you don?t get done, then walk it down in penny increments until you are done.
If you didn?t do options and bought the (FCX) stock outright, hold on. There could be another 15%-25% in it this year.
Ditto for the First Trist ISE Global Copper ETF (CU). Its three largest holdings are First Quantum Minerals Ltd. (FM.TO), Antofagasta (ANTO.L), and Freeport McMoRan (FCX). For more information about (CU), please click here at http://www.ftportfolios.com/retail/etf/etfsummary.aspx?Ticker=CU .
The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep in-the-money spread trades can be enormous.
Don?t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.
If the price of this spread has moved more than 5% by the time you receive this Trade Alert, don?t chase it. Wait for the next one. There are plenty of fish in the sea.
Here are the specific trades you need to execute this position:
Sell 125 May, 2015 (FCX) $16 calls at?????$4.35
Buy to cover short 125 May, 2015 (FCX) $17 calls at..??.$3.37
Net Cost:??????????????????.....$0.98
Profit: $0.98 - $0.80 = $0.18
(125 X 100 X $0.18) = $2,250 or 2.25% profit for the notional $100,000 portfolio.
Welcome to Your First Home Run!
