FCX has been a part of my long-term portfolio as a synthetic covered call.
I also trade FCX for short-term profits to reduce my over all cost.
I don't have deep out of the money LEAPS on FCX, but it's an interesting idea. DOTM LEAPS lose less theta decay and they have a better ROI on the upside. If the share price goes down, it's possible to buy an at the money strike that's lost more dollar amount than the DOTM strike.
FCX has been a part of my long-term portfolio as a synthetic covered call.
I also trade FCX for short-term profits to reduce my over all cost.
I don't have deep out of the money LEAPS on FCX, but it's an interesting idea. DOTM LEAPS lose less theta decay and they have a better ROI on the upside. If the share price goes down, it's possible to buy an at the money strike that's lost more dollar amount than the DOTM strike.