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Freeport-McMoRan has been in a death spiral, and the bears are still circling.
optionMONSTER's Depth Charge monitoring program detected the purchase of 72,000 January 8 puts for $0.90 and the sale of 48,000 January 10 puts for $1.75. Volume was below open interest in the 10s, which indicates an existing position was closed and rolled to the lower strike. Puts lock in the price where investors can sell a stock, so they make money to the downside. They're used to hedge long positions in the underlying or to speculate on a drop. (See our Education section.) Their cheap cost can also generate significant leverage on a percentage basis.
On July 1, for instance, our Market Action service recommended FCX's Weekly 18 puts expiring on July 24 for $0.62. The copper and energy producer sank almost immediately and those contracts appreciated about 800 percent by the time they came due.
FCX fell 0.49 percent to $10.17 in afternoon trading, and has lost more than half its value this year. The company's taken a beating because of weak commodity prices and slow growth in China. It's currently back to levels last seen at the nadir of the financial crisis in late 2008.
Total option volume is almost triple the daily average so far in the session, according to Depth Charge. Puts outnumber calls by a bearish 8-to-1 ratio.
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VanEck Vectors Global Alternative Energy ETF
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PRODUCER |
CODE : FCX |
ISIN : US35671D8570 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Freeport McMoran is a copper and gold producing company based in United states of america. Freeport McMoran produces copper, gold, cobalt, molybdenum and silver in Chile, in Congo Dem. Rep. of, in Indonesia and in Peru, develops copper in Peru, and holds various exploration projects in Chile. Its main assets in production are CANDELARIA, EL ABRA, CHINO - MILL, HENDERSON, MIAMI - ROM LEACH, MORENCI - MILL, OJOS DEL SALADO, MORENCI and MORENCI - ROM LEACH in Chile, GRASBERG, SIERRITA and BAGDAD in Indonesia, TENKE FUNGURUME and TYRONE in Congo Dem. Rep. of and CERRO VERDE in Peru, its main asset in development is SAFFORD in Peru and its main exploration properties are BAGDAD - ROM LEACH and CHINO - ROM LEACH in Peru and CERRO VERDE - MILL, CERRO VERDE - CRUSHED LEACH, CERRO VERDE - ROM LEACH, EL ABRA - ROM LEACH and CLIMAX in Chile. Freeport McMoran is listed in Germany and in United States of America. Its market capitalisation is 2.1 billions as of today (€ 1.9 billions). Its stock quote reached its lowest recent point on March 06, 2020 at 10.00, and its highest recent level on September 20, 2024 at 44.53. Freeport McMoran has 47 442 200 shares outstanding. |