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Tue. 9 Aug 2022, 3:09pm ET Benzinga Options, Markets

 

Someone with a lot of money to spend has taken a bearish stance on Freeport-McMoRan (NYSE:FCX).

And retail traders should know.

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

Whether this is an institution or just a wealthy individual, we don't know. But when something this big happens with FCX, it often means somebody knows something is about to happen.

So how do we know what this whale just did?

Today, Benzinga's options scanner spotted 27 uncommon options trades for Freeport-McMoRan.

This isn't normal.

The overall sentiment of these big-money traders is split between 33% bullish and 66%, bearish.

Out of all of the special options we uncovered, 15 are puts, for a total amount of $1,296,295, and 12 are calls, for a total amount of $645,884.

What's The Price Target?

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $25.0 to $45.0 for Freeport-McMoRan over the last 3 months.

Volume & Open Interest Development

Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Freeport-McMoRan's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Freeport-McMoRan's whale trades within a strike price range from $25.0 to $45.0 in the last 30 days.

Freeport-McMoRan Option Volume And Open Interest Over Last 30 Days

Biggest Options Spotted:

 

Symbol PUT/CALL Trade Type Sentiment Exp. Date Strike Price Total Trade Price Open Interest Volume
FCX PUT SWEEP BEARISH 10/21/22 $27.00 $287.6K 4.1K 3.2K
FCX PUT SWEEP BEARISH 10/21/22 $27.00 $135.0K 4.1K 1.4K
FCX PUT SWEEP BEARISH 10/21/22 $27.00 $115.4K 4.1K 4.0K
FCX PUT SWEEP BEARISH 09/16/22 $33.00 $108.0K 13.9K 300
FCX PUT TRADE BEARISH 01/20/23 $45.00 $99.4K 2.3K 67

Where Is Freeport-McMoRan Standing Right Now?

  • With a volume of 8,824,201, the price of FCX is down -2.43% at $29.88.
  • RSI indicators hint that the underlying stock may be approaching overbought.
  • Next earnings are expected to be released in 72 days.

What The Experts Say On Freeport-McMoRan:

  • Deutsche Bank has decided to maintain their Hold rating on Freeport-McMoRan, which currently sits at a price target of $35.
  • Citigroup downgraded its action to Neutral with a price target of $28
  • Goldman Sachs has decided to maintain their Buy rating on Freeport-McMoRan, which currently sits at a price target of $46.
  • Barclays has decided to maintain their Underweight rating on Freeport-McMoRan, which currently sits at a price target of $24.
  • RBC Capital has decided to maintain their Sector Perform rating on Freeport-McMoRan, which currently sits at a price target of $35.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for Freeport-McMoRan, Benzinga Pro gives you real-time options trades alerts.