On Friday’s CNBC’s Options Action, the crew analyzed the performance of raw commodities over the past 5 years. After a long period of underperformance, raw commodities has rallied back to previous highs. Analyzing Freeport McMoRan’s performance over the past 2 years, it has not yet caught up to raw commodities price action. After forming an inverted head and shoulder formation and breaking a bearish trendline, Carter Worth looks to bet for FCX to move higher. Michael Khouw suggested buying an April 16/19 Call Spread for a $0.90 Debit.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: CNBC Options Action