Trade Alert: Our 3-Day Rule Says Cut Losses on FCX

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Trade Alert: Our 3-Day Rule Says Cut Losses on FCX

We’ll send a new trade alert your way later this morning. Be on the lookout.

Until then, we have some housekeeping to do.

Yesterday, your January $12 call options on Freeport-McMoRan Inc. (NYSE: FCX) closed below our 40% stop-loss level for a third consecutive day.

That’s our rule for exiting trades.

So, we recommend you close this trade today to preserve capital.

We hate losses. But knowing when and how to take a loss is a huge part of long-term success.

Right now, fears in the broad market and global economy remain heavy. It’s time to cut our losses.

We can exploit that fear with put options in a declining market. We have some potential new trades queued up.

Or we can wait. Broad market fear is set to produce some great bargains once the selling subsides. And call options will let us make big money as soon as upside momentum returns.

Nevertheless, it makes sense to reduce our risk while the price of copper and Freeport-McMoRan find their footing.

The price of copper is still coiling up. If it breaks out higher, it could boost shares of Freeport, and our system may trigger a new buy.

Stay tuned for that.

Based on our recommended limit price, the loss we’ll take by closing out this trade today will be about 53%.

So, here’s what we recommend you do.

Your Action to Take:
Sell to Close FCX $12 Call Options

Here are your details to complete this action:

Trade Recommendation

Sell Action to Take

Stock:

Freeport-McMoRan Inc. (NYSE: FCX)

Option Type:

Call Option

Expiration:

January 18, 2019

Strike Price:

$12

Option Symbol:

FCX190118C00012000

Action:

Sell to Close

Order Type:

Limit Order

Duration:

GTC (Good ‘Til Canceled)

Limit Price:

$0.38

Note: Do not place a market order.

We recommend you get today’s order placed as soon as you can.
And be on the lookout for our new trade to follow!

Reach out to us at powertrend@banyanhill.com if you have any questions about this trade.

Good investing,

Matt Badiali signature Jeff L. Yastine signature
Matt Badiali & John Ross
Editors, Power Trend Profits