Copper Stock Surging on Ceasefire Agreement
Mining giant Freeport-McMoRan Inc (NYSE:FCX) is 6.6% higher to trade at $64.75 before the open, riding higher with the broader metals sector. Today's surge comes after the U.S. and Iran reached a two-week ceasefire agreement, easing fears of a slowing economic outlook.
Shares of FCX have been consolidating around the $60 area, after attempting a recovery off its mid-March lows near $50. The equity tapped a Feb. 25, record high of $69.75 and now sports a nearly 20% year-to-date lead.
Options traders have been bearish, however, per the stock's 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 94% of annual readings. Should this negative sentiment begin to unwind, it could trigger more tailwinds for the security.
Premium buying is the way to go at the moment, per the stock's Schaeffer's Volatility Scorecard (SVS), which comes in at 93 out of 100. In simpler terms, the shares have consistently realized higher volatility than its options have priced in over the past 12 months.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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