Freeport-McMoRan's stock may break out as copper rises

Freeport-McMoRan (FCX) is gaining attention as copper prices rise towards their yearly highs. FCX is the largest copper mining company in the world and earns most of its revenue from copper sales. Recent data shows that the company's performance is improving, and it has started to outpace the S&P 500 and its industry peers. The company reported strong earnings that exceeded analyst expectations. In the latest quarter, FCX generated $6.5 billion in revenue, with earnings per share of $0.50. This surge is a result of record production levels and a focus on innovative practices, including the use of AI technology in mining operations. Prospects for FCX in 2025 look bright, with expected revenue between $25 billion and $26 billion. This growth is supported by increasing global demand for copper, especially in the electronics and renewable energy sectors. To take advantage of FCX’s potential price increase, an options trading strategy called a bull call spread is suggested. This involves buying a $40 call option and selling a $47 call option with a total investment of $2.10. If the stock price exceeds $47 by May 2025, investors could gain $490, whereas there is a maximum risk of $210 if the stock price falls below $40. Investors are reminded to consider personal financial circumstances before making trading decisions, and seek advice from financial advisors when needed.