When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.
Trade Alert - (FCX) – EXPIRATION AT MAX PROFIT
EXPIRATION of the Freeport McMoRan (FCX) April 2024 $37-$40 vertical BULL CALL spread at $3.00
Closing Trade
4-19-2024
expiration date: April 19, 2024
Portfolio weighting: 10%
Number of Contracts = 40 contracts
I am sending this out now, so I don’t overwhelm you with too many Maximum profit trade alerts on expiration day on Friday, April 19.
With this trade, we really nailed the ballistic melt-up in (FCX) shares this month. This position is expiring an earth-shaking 13.46% in the money.
Just to be clear, this position does not expire until after the close on Friday, April 19.
As a result, you get to take home $1,600 or 16.00% in 20 trading days. Well done and on to the next trade.
You don’t have to do anything with this expiration.
Your broker will automatically use your long position to cover your short position, canceling out the total holdings.
The entire profit will be credited to your account on Monday morning, April 22 and the margin freed up.
Some firms charge you a modest $10 or $15 fee for performing this service.
The flight of money right now is from small, undercapitalized, and questionable to large, overcapitalized, and rock solid.
A severe short squeeze in copper is developing, leading to a massive price spike later in 2024. Copper prices could jump from the current $4.05 a pound for the CME contract to $10.00 by December, say industry insiders.
A Chinese economic recovery and soon-to-recover EV growth are the reasons. Copper is the only industrial metal up this year, some 6%.
I believe the fundamental argument for Freeport McMoRan is so compelling that I am going to dive in, even during this period of extreme volatility.
This was a bet that (FCX) would not fall below $40.00 by the April 19 option expiration tomorrow.
If you are looking for other copper plays, please take a look at the United States Copper Fund (CPER), First Quantum Minerals Ltd. (FM.TO), Antofagasta (ANTO.L), and hang on. We are going much higher once the stock market bottoms.
I have a feeling that Freeport McMoRan is my new rich uncle, cutting me generous but undeserved maintenance checks every month.
Here are the specific trades you need to close out this position:
EXPIRATION of 40 April 2024 (FCX) $37 calls at………….………......$13.46
EXPIRATION of Sell short 40 April 2024 (FCX) $40 calls at..………$10.46
Net Proceeds:………………………….………..………….…...........................$3.00
Profit: $3.00 - $2.60 = $0.40
(40 X 100 X $0.40) = $1,600 or 16.00% in 20 trading days.
