Bullish options flow was detected in FCX stock on October 8, 2020.
Make sure to review this lesson on options trading so that you understand the chart above.
Bullish option flow detected in Freeport McMoRan with 19,750 calls trading, 1.2x expected, and implied vol increasing over 1 point to 60.80%. Nov-20 $17 calls and Oct-20 $16 calls are the most active options, with total volume in those strikes near 11,500 contracts.
On October 1, 2020, Deutsche Bank analyst Chris Terry initiated a “Buy Catalyst Call” on Freeport-McMoRan heading into the company’s Q3 results scheduled to be released on October 22. The analyst’s EBITDA estimate is now $1.2B, which is 23% above the consensus of $986M, driven by higher realized pricing and volumes. Further, he sees debt reducing and a path towards reinstating a dividend.
On September 24, 2020, Raymond James analyst Brian MacArthur raised the firm’s price target on Freeport McMoRan to $17 from $13.50 and keeps a Market Perform rating on the shares.
On September 23, 2020, Morgan Stanley analyst Carlos De Alba upgraded Freeport McMoRan to Overweight from Equal Weight with a price target of $19, up from $12.50. The analyst has an attractive view of the Metals & Mining industry, saying it is “poised to benefit from a global synchronous recovery supported by unprecedented fiscal and monetary stimulus that is expected to drive inflation higher later in this cycle,” and called Freeport McMoRan one of his top picks in the sector. De Alba called the company “under-owned relative to its history,” and believes it is “well positioned to convert greater free cash flow generation into a stronger balance sheet.”