As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ?look over? John Thomas? shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen.
Trade Alert - (FCX) ? BUY-NEW POSITION-ROLL UP THE STRIKES
Buy the Freeport McMoRan (FCX) May, 2015 $17-$18 deep in-the-money vertical call spread at $0.88 or best
Opening Trade
4-15-2015
expiration date: May 15, 2015
Portfolio weighting: 10%
Number of Contracts = 114 contracts
You can buy this vertical bull call spread anywhere within a $0.80-$0.90 range and have a reasonable expectation of making money on this trade by the May 15 expiration.
The spreads on these deep-in-the-money options are wide, so don?t hold me to these prices. The low stock price also brings a large number of contracts to do the trade, so you?ll have to pay more than the usual amount of commission.
If you can?t do options, then buy the (FCX) stock outright, BUT ONLY ON THE NEXT DIP. There could be another 15%-25% in it this year, but we are up already 25% from yesterday?s low.
You can also participate through buying the First Trist ISE Global Copper ETF (CU). Its three largest holdings are First Quantum Minerals Ltd. (FM.TO), Antofagasta (ANTO.L), and Freeport McMoRan (FCX). For more information about (CU), please click here at http://www.ftportfolios.com/retail/etf/etfsummary.aspx?Ticker=CU .
The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep in-the-money spread trades can be enormous.
Don?t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.
If the price of this spread has moved more than 5% by the time you receive this Trade Alert, don?t chase it. Wait for the next one. There are plenty of fish in the sea.
Here are the specific trades you need to execute this position:
Buy 114 May, 2015 (FCX) $17 calls at?????$3.60
Sell short 114 May, 2015 (FCX) $18 calls at..??.$2.72
Net Cost:??????????????????.....$0.88
Potential Profit: $1.00 - $0.88 = $0.12
(114 X 100 X $0.12) = $1,368 or 1.37% profit for the notional $100,000 portfolio.
