Goldman Sachs Suggests Buying Call Spreads on Freeport-McMoRan (FCX)

Goldman Sachs is out with an analyst note this morning, where it suggests buying call spreads on Freeport-McMoRan Copper & Gold Inc. FCX. Goldman Sachs analyst, Sal Tharani, recently rated FCX a Buy, saying he expects FCX to beat consensus this quarter. He also sees upside to 2011 consensus of +16%, and sees the potential for management to discuss production expansion. The analysts believe that FCX options are attractive for investors to position for upside within a wide range. They suggest buying the February $125/135 call spread for $2.94.