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FCX Stock Replacement Strategy

|Includes:Freeport-McMoRan Inc. (FCX)

FCX Current Price $33.28 (April Expiration)

Scenario 1

Buy 33 Call - $1.27

Sell 34 Call - $.79

Sell 31 Put - $.47

a) You will pay $.01 to initiate this spread

b) You can participate in the upside from $33.01 to $34

c) You will not experience a loss in this trade unless FCX falls below $31

d) This method will only lose $.01 even if the shares fall to $31.01, whereas owning the stock will produce a loss from $33.28 all the way down to that point.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: FCX