Freeport McMoRan call activity attributed to takeover speculation
FLY ON THE WALL 7:14 AM ET 5/14/2015
Symbol Last Price Change
FCX 22.71down +0.1 (+0.44%)
QUOTES AS OF 12:06:55 PM ET 05/14/2015
Freeport McMoRan (FCX) May 23 and 23.5 calls are active on total call volume of 14K contracts (1K puts) on takeover speculation. May call option implied volatility is at 34, June is at 40, October is at 38; compared to its 26-week average of 40. Active option volume suggests traders taking positions for wide price movement.
that is why FCX is hanging in and also the blockade was lifted in Indonesia yesterday. So both positive. Cut in dividend is to preserve cash and once oil stabilizes FCX will move again. So all this is noise in the short term. Stocks go up and they go down so time your buying and have patience.
Refinery strike and Euro weakness. If you look at the technicals its almost bottomed, maybe 37 and then back up a couple points to 39-40. Divident is still 60 cents per qtr which is excellent. Just enjoy the ride up when brent recovers which will be shortly.
If it were to crash it would have dumped in after market close, like Citi jumped from 52 to 54 BAC dropped from 16.11 to 15.86, MAYBE it might hit 15.51 tmrw but I think it will run up to 16.50 - 16.75. There was nothing negative the Fed said and when they give the Fed the new plan by Sept 30 the stock should be in the 20ish and will run to 25. So shorts just cover and run for cover.