Clearing Out of Freeport and Square

Today is a good day to close a few positions, starting with Freeport-McMoRan (FCX) . I'll be the first to admit this stock is looking much better and if I had a longer timeframe, I would not be selling here, but my position is a trade.

Initially, I sold the September $15 puts and the stock was indeed put to me at $15. With a cost basis of $14.47, I was fine until shares dipped under $14. I employed an enhancement strategy, buying the Oct. 6 $14 call and selling two Oct. 6 $14.50 calls against the long 100 shares. The aim here was to be able to either bring down my average cost or close the position with a profit. If FCX closed above $14 but under $14.50, I'd lower my average cost 1 penny for each penny above $14 shares closed on Friday. If shares closed over $14.50, then I'd net $0.53, ironically equal to the put I originally sold. Well, we aren't to Friday yet, but with shares trading at $14.81, I am going to exit the position for a gain of $42 here. ...295 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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