Thursday, July 2, 2015

FCX an interesting call

FCX provides an interesting opportunity to make a quick 2.29% in less than 60 days.  Buy FCX today at $18.38 and sell an August $20 call for $.42.   Add in the dividend of $.0165 and bingo you made 2.29%.

Of course, two other factors must be considered.  FCX's price could deteriorate and you might suffer a loss.   The other outcome is the call buyer takes your stock.   This would be good as you could bank a total return of nearly 12% in 60 days.   See the table below.


Disclosure:  Long FCX with calls