Freeport-McMoRan Options Trading: A Deep Dive into Market Sentiment

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Investors with a lot of money to spend have taken a bearish stance on Freeport-McMoRan FCX.

And retail traders should know.

We noticed this today when the positions showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don’t know. But when something this big happens with FCX, it often means somebody knows something is about to happen.

Today, Benzinga’s options scanner spotted 11 options trades for Freeport-McMoRan.

This isn’t normal.

The overall sentiment of these big-money traders is split between 27% bullish and 45%, bearish.

Out of all of the options we uncovered, there was 1 put, for a total amount of £31,025, and 10, calls, for a total amount of £572,697.

Expected Price Movements

After evaluating the trading volumes and Open Interest, it’s evident that the major market movers are focusing on a price band between £37.0 and £49.0 for Freeport-McMoRan, spanning the last three months.

Analyzing Volume & Open Interest

In today’s trading context, the average open interest for options of Freeport-McMoRan stands at 1877.6, with a total volume reaching 6,251.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Freeport-McMoRan, situated within the strike price corridor from £37.0 to £49.0, throughout the last 30 days.

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Freeport-McMoRan 30-Day Option Volume & Interest Snapshot

Largest Options Trades Observed:

SymbolPUT/CALLTrade TypeSentimentExp.

DateAskBidPriceStrike PriceTotal Trade PriceOpen InterestVolumeFCXCALLSWEEPNEUTRAL06/21/24£3.05£2.93£2.99£48.00£179.4K4.8K1.6KFCXCALLTRADEBEARISH06/21/24£3.2£3.0£3.0£48.00£60.0K4.8K301FCXCALLSWEEPBULLISH11/15/24£6.6£6.5£6.6£47.00£59.2K38044FCXCALLTRADEBEARISH06/21/24£3.05£2.95£2.95£48.00£59.0K4.8K2.0KFCXCALLTRADEBULLISH06/21/24£2.97£2.91£2.95£48.00£59.0K4.8K1.8K

About Freeport-McMoRan

Freeport-McMoRan Inc is an international mining company. It has organized its mining operations into four primary divisions: North America copper mines, South America mining, Indonesia mining and Molybdenum mines. Its reportable segments include the Morenci, Cerro Verde and Grasberg (Indonesia mining) copper mines, the Rod & Refining operations and Atlantic Copper Smelting and Refining.

It derives key revenue from the sale of Copper.

Following our analysis of the options activities associated with Freeport-McMoRan, we pivot to a closer look at the company’s own performance.

Current Position of Freeport-McMoRan

Currently trading with a volume of 858,586, the FCX’s price is up by 0.6%, now at £48.28.
RSI readings suggest the stock is currently may be approaching overbought.
Anticipated earnings release is in 85 days.

Professional Analyst Ratings for Freeport-McMoRan

3 market experts have recently issued ratings for this stock, with a consensus target price of £55.333333333333336.

Consistent in their evaluation, an analyst from JP Morgan keeps a Neutral rating on Freeport-McMoRan with a target price of £52.
Showing optimism, an analyst from B of A Securities upgrades its rating to Buy with a revised price target of £59.
An analyst from Scotiabank has decided to maintain their Sector Outperform rating on Freeport-McMoRan, which currently sits at a price target of £55.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Freeport-McMoRan options trades with real-time alerts from Benzinga Pro [1].

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Benzinga does not provide investment advice.

References

^ Benzinga Pro (benzinga.grsm.io)
^ Market News and Data brought to you by Benzinga APIs (benzinga.com)