This week’s free credit spread (and a few lessons learned)

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Subject: This week’s free credit spread (and a few lessons learned)

Market Moves (With Jon Lewis from Terry's Tips)

Another week, another opportunity. In this edition of "Market Moves," we’re diving into a new credit spread set up, last week’s performance, and fresh strategy insights from Jon.

🚨FREE TRADE OF THE WEEK 🚨

"Copper-Tunity Knocks"

(Credit spread trade)

🚂 Jon spots a bullish setup in Freeport- McMoRan (FCX)

Trade Set Up – Put Credit Spread: Sell the June 20th 33/31 put spread for at least $0.34 in credit
Sell to Open: FCX 20 Jun 33 Put
Buy to Open: FCX 20 Jun 31 Put
Expiration Date: 6/20/2025
Minimum Credit: $0.34 (= $34 per spread)
Cash Needed: $200 per spread
Time in Trade: 52 days (if entered today, 4/29/25)
ROI on Winning Trade: 20%
What does this mean?
- This is a bull put spread, which profits if FCX stays above $33 through 6/20/25
- Risk is limited and defined, since it’s a vertical credit spread

More on FCX:

FCX posted earnings in line and revenue ahead of analyst expectations
Management projects higher production for the rest of the year
Benefiting from surging copper and gold prices, especially gold’s 50% gain over the past year
Four analyst upgrades in the last two months; average price target now 20% above current price
Stock has rallied 35% since hitting a 33-month low on April 7
Short strike ($33) sits below rising 20-day and 50-day moving averages, providing strong technical support

FCX Chart: The blue horizontal line on the chart below represents the sold put strike ($33). The goal for this trade is to stay above $33 through 6/20/25.

Weekly Portfolio Update: As of April 26th, 2025

(2025 = 4 portfolios, 4 stocks)

Jon's YTD Return: -8.8% (2.2% less than S&P 500)

S&P 500 YTD Return: -6.4% (4/25/25 closing price)

Tough week? Yes. But as a reminder, Jon's "10K" strategy has outperformed the market by over 85% in the last 5 years.

2020-2024 Results - Jon's 10K Strategy

Jon's Weekly Trading Notes (4/21-4/25/25)

A Fierce Market Rebound

This week was a wild ride: volatility surged early as tariff concerns and the Powell-Trump standoff rattled markets. Monday saw sharp drops, but the portfolios held up thanks to smart delta positioning and adjustments.

Tuesday flipped higher, wiping out Monday’s gains and testing patience — but discipline in adjusting delta kept damage contained.

Midweek, a massive market rebound (sparked by tariff and political easing) caused major gaps higher, driving deltas sharply negative and implied volatility (IV) lower. We rolled out select spreads (mainly DIS) to rebalance, but losses mounted as IV collapsed.

Thursday was the roughest day, with relentless market rallies forcing tough choices between staying neutral and overcorrecting. Ten trades were made to re-center deltas.

By Friday, some "green shoots" appeared. Strategic cleanup trades on MSFT and QQQ helped stabilize deltas, and a late-week rally lifted portfolios modestly. Despite battling falling IVs and aggressive moves, we ended the week positioned for a cleaner start and to leverage MSFT's earnings on Wednesday.

Thank you for reading! Best of luck out there this week! - Jon Lewis

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Subject: This week’s free credit spread (and a few lessons learned)