Stock / Symbol: [private_monthly]Freeport-McMoRan / FCX [/private_monthly]
Price at trade post: $108.47
Option Strategy: bull put spread
Max Risk: $888
Max Reward: $112 or 12.6% by FEB expiration
Profit Range: $99.44 +
Max Reward Price: $100 + at FEB expiration
Reasoning: The fundamentals are still strong with this stock and it has an 78% probability of closing above our break even at $99.44 by January expiration
Trade Details:
[private_monthly]
Buy 2 FCX Feb11 95 Puts @ $0.47 for $94.00
Sell -2 FCX Feb11 100 Puts @ $1.03 for ($206.00)
for a net credit of $0.56 or $112
Requirements
Cost/Proceeds ($112.00)
Option Requirement $1,000.00
Total Requirements $888.00
Estimated Commission $12.95
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Chart:
[private_monthly]
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