Spotlight on Freeport-McMoRan: Analyzing the Surge in Options Activity

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

And retail traders should know.

We noticed this today when the trades 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.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 8 uncommon options trades for Freeport-McMoRan.

This isn't normal.

The overall sentiment of these big-money traders is split between 50% bullish and 37%, bearish.

Out of all of the special options we uncovered, 4 are puts, for a total amount of $335,619, and 4 are calls, for a total amount of $104,415.

Projected Price Targets

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $44.0 to $55.0 for Freeport-McMoRan during the past quarter.

Analyzing Volume & Open Interest

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

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 activity within a strike price range from $44.0 to $55.0 in the last 30 days.

Freeport-McMoRan 30-Day Option Volume & Interest Snapshot

Biggest Options Spotted:

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.

Where Is Freeport-McMoRan Standing Right Now?

• Currently trading with a volume of 2,864,150, the FCX's price is down by -0.25%, now at $46.62.
• RSI readings suggest the stock is currently may be approaching oversold.
• Anticipated earnings release is in 85 days.

What Analysts Are Saying About Freeport-McMoRan

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $53.8.

Unusual Options Activity Detected: Smart Money on the Move

Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * Maintaining their stance, an analyst from Scotiabank continues to hold a Sector Perform rating for Freeport-McMoRan, targeting a price of $52. * Maintaining their stance, an analyst from Scotiabank continues to hold a Sector Perform rating for Freeport-McMoRan, targeting a price of $53. * Maintaining their stance, an analyst from JP Morgan continues to hold a Neutral rating for Freeport-McMoRan, targeting a price of $55. * Consistent in their evaluation, an analyst from Raymond James keeps a Outperform rating on Freeport-McMoRan with a target price of $57. * In a cautious move, an analyst from Scotiabank downgraded its rating to Sector Perform, setting a price target of $52.

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.