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Get the Best of Both Worlds With This Copper-Gold Stock
Contributed Opinion

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Michael Ballanger Michael Ballanger of GGM Advisory Inc. shares one stock he believes is a one-stop-shop for copper and gold investors.

Freeport-McMoRan Inc. (FCX:NYSE) is the world's largest producer of molybdenum, is a major copper producer, and operates the world's largest gold mine, the Grasberg mine in Papua, Indonesia.

If you are a copper and gold bull (as I am), you have to like the idea of "one-stop-shopping" and own the shares of FCX:NYSE. It is seen more as a copper deal than a gold deal, but when both metals begin to outperform later this year, I can see it as an institutional favorite with a performance that could parallel the awesome move in Cameco Corp. (CCO:TSX; CCJ:NYSE) since late 2020 when one could have accumulated it under US$10.

Technically, FCX:NYSE is very close to a bullish MACD crossover, which joins the bullish Money Flow Indicator ("MFI"). A 2-day close above the downtrend line at US$41 will set up a move to test the highs at US$43, but once beyond that, the sky is virtually the limit.

I am looking to make FCX:NSYE a "core" trading position in the same way that I have been using SPDR Gold Shares ETF (GLD:NYSE) in the past. For this reason, I am taking a minor 20% position in the FCX June US$40 calls at a price of US$4.00 as a starter, adding another 20% every two days after today.

Since the FOMC meeting could send stocks either up or down once it knows Powell's intentions, it is cointoss as to whether one should bid now or after the presser. I am going to move now to join the bid at US$4.00.

  • Buy 20% position FCX June US$40 calls at US$4.00.

Add 20% every two days after today until you reach a 100% position. I will start with ten contracts.

For non-option traders, I prefer FCX:NYSE to either of the gold miner ETF's (GDX/GDXJ) and to the two copper ETF's (COPX/COPJ).

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Important Disclosures:

  1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Cameco Corp.
  2. Michael Ballanger: I, or members of my immediate household or family, own securities of: All. I determined which companies would be included in this article based on my research and understanding of the sector.
  3. Statements and opinions expressed are the opinions of the author and not of Streetwise Reports, Street Smart, or their officers. The author is wholly responsible for the accuracy of the statements. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Any disclosures from the author can be found  below. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy. 
  4.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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Michael Ballanger Disclosures

This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.

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