Bullish – FCX – $20.14
This past week started off with a flash on vaccine news, breaking the S&P 500 above its resistance level and ending with a confirmed $355 support level. However, the seismic shift was the severe underperformance of tech and Nasdaq-100 failing to break above its Sept and Oct highs, losing ground to value. Additionally the VIX closed the week near post pandemic lows at 23.1%, providing further opportunities to initiate long option positions.
FCX Trade Idea:
On CNBC’s OptionsAction show on Friday, Tony Zhang reviewed a breakout in the copper to gold ratio. After 2 years of underperformance vaccine news broke the underperformance, signaling a shift in the global economic recovery. With copper starting to breakout higher and outperforming gold, mining stocks like FCX will gain to benefit from a weaker dollar and gains in industrial and precious metals. Expecting FCX to rally further, Tony is buying a Feb $20/$24 Call Vertical @ $1.36 Debit.
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