Options Trading News

December 12, 2012  Wed 9:34 AM CT

One trader apparently believes that Freeport-McMoRan Copper & Gold will continue to hold support through 2014.

optionMONSTER's systems detected the sale of 4,000 January 2014 23 puts for the bid price of $1.50. The volume was well above the strike's open interest of 2,516 contracts at the start of the session, so this is a new position.

The put selling is a bet that FCX will hold above $23 through the next year. Shares haven't been below that level since the middle of 2009. (See our Education section)

FCX is up 0.42 percent this morning to $32.11. The stock gapped down from above $38 last week and traded as low as $30.54, its 52-week low, but today is above support that held up through the middle of the year.
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As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

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