There's two (2) ways to play this "Special Dividend" payout.
You can buy the stock and receive the dividend or you can wait til ofter the "Date of Record" date to buy the stock at a "X-dividend" price. My experience tells me it's better to be an "owner" of the stock which is paying a "special Dividend" because the the stock price will initially be lower on "x-dividend" day but not a full realization price of the "special dividend" offset. So therefore you end up with a nice cash dividend and also be the owner of the "NEW" Freeport McMoRan, which should do well on acquisition day (This time Acquisition day coincides with the special "x" divi-day, which makes it a special situation) Play it either way my friends, but remember... I told you the right way to play. JMHO
How about this. The stock has a run up before the ex-div date. Sell at the peak. After the dividend if the stock continues to go south you can buy back at the lower price if still interested in this stock.
the way i played it is i sold the 34 june call on my 2800 shares today. after the dividend, the stock won't make 34 before the option expires. another way to stick 24 cents a share in my pocket. i bought in around 36, and after the dividend and option expires, i'll be in around 33. it sucked when the stock nosedived below 28 :). after this, i don't sell any more calls... just wait for the consolidation to pay off. fcx is a 40 dollar stock and will go much higher when the company starts hitting on all cylinders. this is a great long term hold with excellent management.
Keep in mind that the CBOE will probably require the contracts to be adjusted to account for the special dividend, as the dividend clearly was not anticipated, and therefore differs in nature fron the regular dividend. In such case, the strike prices on all contracts will be lowered by $1.00. Might want to check with your broker to see if the CBOE has already ruled on how they will handle the special dividend.