Freeport McMoRan downgraded to Neutral from Buy at Citigroup Citigroup downgraded Freeport McMoRan (FCX) citing increased leverage and earnings dilution from the company's acquisitions of Plains Exploration (PXP) and McMoRan Exploration (MMR). The firm lowered its price target for shares to $35 from $46.
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.