Freeport Loses Luster as Commodities, China Roil Trades: Options
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Falling commodity prices and concern over a Chinese economic slowdown are testing the mettle of options traders as they bet on a decline in Freeport-McMoRan Inc., the biggest publicly traded copper producer.
Demand for options that protect against future losses in Freeport shares rose to the highest level in more than two years relative to bullish ones, data compiled by Bloomberg show. Implied volatility on the company’s stock is also at the highest level in 20 months versus the S&P 500.