If you’re looking for the ultimate China play, look no further than Freeport-McMoRan (NYSE: FCX), one of the largest copper producers in the world. The company’s largest mine is called Grasberg – it’s located in Indonesia, and it has been producing huge amounts of copper for years.

But in recent years, Freeport-McMoRan ran into issues with the Indonesian government and had to slow production while new terms were negotiated. Thankfully, that is behind the company now.

But Freeport-McMoRan has also made some poor management decisions, like buying into an oil and gas company at the peak of the market several years ago.

That’s behind it too, and now the company’s problems ahead are more solvable…

For example, the trade war with China.

What’s the Freeport-China connection?

Well, China is the world’s factory and uses massive amounts of copper daily. But when China’s tariff war with the U.S. began, people started selling company shares, betting that slower growth was ahead.

That was a smart bet, but that bet’s days might be numbered. In recent weeks, there has been a thaw in those negotiations with China…

That’s one good reason to be in the Freeport-McMoRan trade.

Another reason is the price of copper…

According to Freeport-McMoRan, costs for mining copper are increasing and the number of new mines of size are decreasing. That bodes well for the future of copper prices.

Copper is used in just about every electronic product – wiring, housing and, of course, it is a big component of electric and hybrid cars.

It made perfect sense to establish a position in Freeport-McMoRan via long-term equity anticipation securities (LEAPS) options, for these reasons.

And we recommended these LEAPS to War Room members…

Not once, but twice!

Freeport-McMoRan was set to report numbers yesterday. And we could have waited to issue a sell, but one of these open positions was up 50% the day before as speculators started laying their bets on a good earnings report and news that a deal with China was in the works.

Why not take the bird in the hand?

That’s what Smart Speculation is all about!

Action Plan: We took that profit, and War Room members cashed in, some for more than 50%.

Freeport-McMoRan reported its numbers, and the company’s shares went a little higher as it affirmed that its business and copper demand were strong.

We’ll wait for that news to sink in so that members can ring the register in The War Room a second time. To be part of the excitement and winning trades, join me in The War Room today!