Trade Highlight: FCX

I need to start today by telling you about the profit my Profit Revolution members just booked in mining company Freeport-McMoRan Inc. (NYSE:FCX).

On the last day of January – just five days after FCX had reported earnings – I spotted a cheap-option play on the stock for just 80 cents.

So, I recommended the February 25 $40 calls during the live trading session:

Two days later, FCX had risen as expected… and we sold half of those calls for $1.60 – 100% in two days!

But FCX wasn’t done yet… and neither were we.

Yesterday, FCX absolutely skyrocketed:

FCX Feb 2022

And in the morning, we sold half of the remaining position for $2 – that’s 200% in nine days!

And then, the whammy – before the end of the day, this option was worth $4.

Do the math…

That’s a 400% post-earnings profit in nine days. And that’s exactly what I like to call asymmetric trading.

How did we do it? Well, by playing this earnings pattern

The same pattern we’re playing all earnings season long.

Three Factors Moving the Market Higher

So far today, the market’s worst performance was at the open.

Since then, we’ve been on a steady climb upward:

S&P 500 2/10 | Google Finance

My VIX light is still yellow, but unless we have a complete turnaround in the market, we could end the day red, meaning volatility is set to drop.

  1. Meme stocks like AMC are in a short squeeze that’s pushing the Russell 2000 higher.

AMC Feb 2022

  1. Commodities like oil and gas prices are rising, which is holding up oil and energy names like BP and XOM.

BP Feb 2022

  1. Banks like BAC continue to be strong.

BAC Feb 2022

Heavy Call Buying in HTA

This isn’t the first heavy call buy I’ve seen in Healthcare Trust of America NYSE:HTA) – but it is the most recent:

This trader bought 15,684 of the HTA April 14, 2022 $37.50 calls for 30 cents each – a total purchase of $470,520.

HTA opened this morning at $31.08 – so why does this big-money buyer think it’s going to $37.50?

Well, as I said before, this isn’t the first heavy call buy I’ve seen on HTA.

Real estate can do extremely well in an inflationary environment – and all of this heavy call buying has me wondering if there’s a buyout at play here.

If so, we could see some real upside coming here…

And I’d go bullish on HTA.

Disney’s Out-of-the-Park Earnings… Pun Intended

  1. Walt Disney Co. NYSE:DIS)

DIS absolutely blew the doors off of earnings this morning, reporting a higher-than-expected jump in streaming subscribers and theme park revenue for Q4.

This was my pick of the year, and I think it could make a run at $200 by the end of 2022.

But I’m also interested in making some bucks in the meantime…

Especially now that DIS is prime for a post-earnings trade using this asymmetric strategy.

  1. Palantir Technologies Inc. NYSE:PLTR)

After a steady downfall, this stock seems to have finally found its footing…

PLTR 2022

It might be time to go long calls on PLTR as it starts its move back up.

  1. Cameco Corp. NYSE:CCJ) & Denison Mines Corp. NYSEAMERICAN:DNN)

These names have one thing in common: uranium. And uranium is blowing higher as I type. As paper heats up in both of these names, there could be a bullish trade in both names – and that’s exactly what I’m looking to trade in today’s Profit Revolution trading session.

Mark Sebastian
Founder, Profit Takeover


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