Freeport McMoRan weakness would be buying opportunity, says Cowen Cowen believes Freeport McMoRan (FCX) will need to increase its bid for Plains Exploration & Production (PXP) in order to obtain a favorable shareholder vote. The higher bid may cause near-term weakness in Freeport which would create a buying opportunity. Shares of Freeport are Buy rated with a $45 price target.
Freeport McMoRan call activity attributed to takeover speculation Freeport McMoRan May 23 and 23.5 calls are active on total call volume of 14K contracts (1K puts) on takeover speculation. May call option implied volatility is at 34, June is at 40, October is at 38; compared to its 26-week average of 40. Active option volume suggests traders taking positions for wide price movement.