Swing Trade Idea (FCX) – July 18, 2023
OptionsPlay’s bearish trade for Tuesday, July 18th is Freeport-McMoRan Inc. (FCX). FCX is part of the Materials Sector, which has performed at 3.07% over the last month, with FCX underperforming at 1.18% over the same period.
FCX traded into a longstanding area of resistance of $41 to $42. FCX has a Relative Strength of 3 (out f 10) and, as it already respected this level and is pulling back, we believe that it will not trade higher over the duration of this trade.
As a stop loss, if FCX were to trade above $42 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves above $2.12.
