Published On: Tue, Feb 21st, 2017

UPDATE: Freeport-McMoRan covered call — #SaxoStrats



Shares of Freeport-McMoran are under pressure at the close following a downgrade by Deutsche Bank. We expect shares to stay under the cosh in the short run but to eventually stabilise.

Therefore, we are going to make an adjustment in the covered call by rolling out of the existing three March 17 Calls into a 31 March 15 Call, or creating a diagonal spread. The roll will result in a net credit of $ 0.50 per contract. The net credit further reduces our cost basis in the underlying shares from $ 16.62 to $ 16.12.

We will continue to monitor the strategy and update.

 Source: Dynamic Trend, Saxo API

— Edited by Martin O’Rourke

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