Put buyers are targeting Freeport-McMoran for the second day in a row.
More than 7,400 October 11 puts were purchased for $0.87 to $0.95 this morning, according to optionMONSTER's Depth Charge tracking program. This represents fresh buying, as volume was triple the open interest in the strike, and follows heavy buying in the October 10 puts yesterday .
Long puts lock in the price where a stock can be sold no matter how far it might drop, gaining value in a selloff. The contracts can be purchased either as an outright bearish bet or a hedge on a long-stock position . (See our Education section)
FCX is up 0.27 percent to $11.30 in early trade. The mining and energy company has rebounded since falling to $7.76 on Aug. 26, its lowest price since December 2008, but is still down 43 percent in the last three months.
Total puts in the name are outnumbering calls by about 37 percent so far.
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