OptionsPlay DailyPlay

Bullish – FCX – $20.14

Catch OptionsPlay’s Chief Strategist, Tony Zhang on CNBC, Options Action every Friday at 5:30 PM EST!

Market Outlook:
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.

Watch Tony’s FCX Trade Video on CNBC

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. 

We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. 

View FCX Trade