Spotlight on Newmont: Analyzing the Surge in Options Activity

Investors with a lot of money to spend have taken a bullish stance on Newmont NEM.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with NEM, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 18 uncommon options trades for Newmont.

This isn't normal.

The overall sentiment of these big-money traders is split between 55% bullish and 33%, bearish.

Out of all of the special options we uncovered, 3 are puts, for a total amount of $129,422, and 15 are calls, for a total amount of $749,158.

Expected Price Movements

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $20.0 and $60.0 for Newmont, spanning the last three months.

Analyzing Volume & Open Interest

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Newmont's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Newmont's significant trades, within a strike price range of $20.0 to $60.0, over the past month.

Newmont Option Activity Analysis: Last 30 Days

Noteworthy Options Activity:

About Newmont

Newmont is the world's largest gold miner. It bought Goldcorp in 2019, combined its Nevada mines in a joint venture with competitor Barrick later that year, and also purchased competitor Newcrest in November 2023. Its portfolio includes 17 wholly or majority owned mines and interests in two joint ventures in the Americas, Africa, Australia and Papua New Guinea. The company is expected to produce roughly 6.9 million ounces of gold in 2024. However, after buying Newcrest, Newmont is likely to sell a number of its higher cost, smaller mines accounting for 20% of forecast sales in 2024. Newmont also produces material amounts of copper, silver, zinc, and lead as byproducts. It had about two decades of gold reserves along with significant byproduct reserves at the end of December 2023.

In light of the recent options history for Newmont, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Newmont's Current Market Status

• Currently trading with a volume of 2,727,346, the NEM's price is up by 2.25%, now at $48.41.
• RSI readings suggest the stock is currently may be overbought.
• Anticipated earnings release is in 8 days.

Expert Opinions on Newmont

A total of 4 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $53.75.

• In a positive move, an analyst from CIBC has upgraded their rating to Outperformer and adjusted the price target to $61.
• Consistent in their evaluation, an analyst from B of A Securities keeps a Buy rating on Newmont with a target price of $50.
• An analyst from UBS upgraded its action to Buy with a price target of $50.
• Consistent in their evaluation, an analyst from Jefferies keeps a Buy rating on Newmont with a target price of $54.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Newmont options trades with real-time alerts from Benzinga Pro.