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Today the FCX copper play was closed.

The position was originally entered as 2x Aug 21 $65/$75 call spreads at a $2.95 debit per spread.
Over the past few weeks, the trade went through a fairly large swing. At one point, the $65 calls were comfortably ITM while the short $75 calls remained OTM. Then FCX pulled back sharply into the low $60s before momentum returned and pushed the stock back toward $70.

With only around 11 days left until expiry, the decision was made to close the position rather than let the final stretch turn into an expiry gamble.

The fills:

Spread 1:
$65 call sold @ $6.57
$75 call bought back @ $1.22
Net: $5.35

Spread 2:
$65 call sold @ $6.65
$75 call bought back @ $1.30
Net: $5.35

So the average exit was $5.35, against an original cost of $2.95.

Initial investment: $590

Exit value: $1,070

Gross profit: $480

Return: +81.4% before fees.

The working exit target had been around FCX $70, and with the stock reaching that area, the opportunity was there to take the gain.
Could the spread have continued toward its $10 maximum value if FCX kept running toward $75? Absolutely. But with expiration approaching, the risk/reward had changed considerably. An 81% return was enough to take the win rather than push for the final part of the move.

FCX: closed. +81%. 🟢

Sometimes the trade is simply to wait. This time, the trade was to take the money.

**First off, apologies for being a bit quiet lately.** I haven't disappeared. I simply felt there wasn't much value in posting for the sake of posting. The market has spent the last weeks trying to find its footing, and rather than reacting to every headline or intraday move, I chose to stay patient and let what we viewed as short-lived uncertainty play out.

As we're now approaching expiration on the FCX call spread, we're walking a bit of a tightrope. The good news is that the long $65 calls are now **in the money**, while our short $75 calls remain **out of the money**. That's exactly where we want to be with a bull call spread.

FCX has benefited from improving sentiment around copper, supported by stronger outlooks for copper and gold sales, continued share buybacks, and a more constructive outlook for the copper market. That said, geopolitical uncertainty and operational risks remain, so I'm mindful not to become complacent.

With FCX currently trading around **$68**, the spread has recovered nicely and moved back into profit. Since expiration is now only about two weeks away, my current plan is to **look for an exit around the $70 level**, assuming the stock continues to cooperate.

The final stretch of a vertical spread can be rewarding if the underlying keeps moving in our favor, but time decay also accelerates as expiration approaches. Rather than trying to squeeze out every last dollar of theoretical value, I'd rather lock in a solid gain if my target is reached.

Keeping you posted within a week.

First off, apologies for being a bit quiet lately. I haven't disappeared. I simply felt there wasn't much value in posting for the sake of posting. The market has spent the last weeks trying to find its footing, and rather than reacting to every headline or intraday move, I chose to stay patient and let what we viewed as short-lived uncertainty play out.

As we're now approaching expiration on the FCX call spread, we're walking a bit of a tightrope. The good news is that the long $65 calls are now in the money, while our short $75 calls remain out of the money. That's exactly where we want to be with a bull call spread.

FCX has benefited from improving sentiment around copper, supported by stronger outlooks for copper and gold sales, continued share buybacks, and a more constructive outlook for the copper market. That said, geopolitical uncertainty and operational risks remain, so I'm mindful not to become complacent.

With FCX currently trading around $68, the spread has recovered nicely and moved back into profit. Since expiration is now only about two weeks away, my current plan is to look for an exit around the $70 level, assuming the stock continues to cooperate.

The final stretch of a vertical spread can be rewarding if the underlying keeps moving in our favor, but time decay also accelerates as expiration approaches. Rather than trying to squeeze out every last dollar of theoretical value, I'd rather lock in a solid gain if my target is reached.

Keeping you posted within a week.

A quick update on the two active positions in the Nano Fund.

Position 05 - FCX Aug 2026 65/75 Call Spread

FCX continues to perform well and is currently showing a gain of roughly 67% on capital at risk.

The thesis remains intact.

The original view was that copper would continue to benefit from long-term electrification demand while FCX remained undervalued relative to the underlying commodity outlook. Nothing in the recent price action has changed that view. If anything, the fundamentals appear stronger today than when the position was initiated.

While it is tempting to lock in gains after a move like this, the spread still has meaningful upside remaining and plenty of time until expiration. The current plan is to continue holding the position and allow the thesis additional time to play out.

As always, we will reassess if the underlying facts change. At the moment, they have not.

Position 06 - NFLX Jan 2027 100/120 Call Spread

NFLX is currently trading below our entry and the position is showing an unrealized loss.

This was expected as part of the trade.

The thesis was never based on perfectly timing the bottom. In fact, the position was opened after a sharp pullback because we viewed the selloff as largely driven by sentiment and headline risk rather than a deterioration in the underlying business.

The market reacted negatively to news surrounding Reed Hastings' planned departure, creating a rapid decline from recent highs. This has continued over macro uncertainties. Our view remains that this was primarily a fear-driven move rather than a fundamental reassessment of Netflix's long-term earnings power.

The key point is that we have time.

The position does not expire until December 2027, giving the trade many months to work. We are not dependent on an immediate reversal. We simply need Netflix to recover and resume its longer-term trend before expiration.

Nothing in the original thesis has changed.

Portfolio Perspective

One position is working immediately.

One position is currently underwater.

That is normal.

The goal of the Nano Fund is not to have every position green at all times. The goal is to consistently deploy capital into asymmetric opportunities where the potential reward justifies the risk.

For now:

• FCX thesis intact.
• NFLX thesis intact.
• No portfolio changes.

Sometimes the hardest part of portfolio management is doing nothing.

We continue to monitor both positions and will provide updates as conditions change.