Investors with a lot of money to spend have taken a bearish 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 17 uncommon options trades for Newmont.
This isn't normal.
The overall sentiment of these big-money traders is split between 29% bullish and 70%, bearish.
Out of all of the special options we uncovered, 4 are puts, for a total amount of $177,516, and 13 are calls, for a total amount of $588,105.
What's The Price Target?
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $20.0 to $45.0 for Newmont over the recent 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 $45.0, over the past month.
Newmont 30-Day Option Volume & Interest Snapshot
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| NEM | CALL | SWEEP | BEARISH | 01/19/24 | $40.00 | $87.5K | 12.1K | 2.1K |
| NEM | PUT | TRADE | BEARISH | 12/15/23 | $37.50 | $58.0K | 6.0K | 2.5K |
| NEM | CALL | TRADE | BEARISH | 01/17/25 | $20.00 | $55.9K | 65 | 30 |
| NEM | CALL | SWEEP | BEARISH | 01/19/24 | $40.00 | $48.1K | 12.1K | 925 |
| NEM | CALL | TRADE | BULLISH | 01/19/24 | $42.50 | $48.0K | 11.1K | 2.4K |
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 7.3 million ounces of gold in 2023 pro forma for Newcrest on an annualized basis. Newmont also produces material amounts of copper, silver, zinc, and lead as byproducts from its various gold mines. It had about two decades of gold reserves along with significant byproduct reserves after acquiring Newcrest.
Present Market Standing of Newmont
- Currently trading with a volume of 8,306,712, the NEM's price is up by 5.59%, now at $40.31.
- RSI readings suggest the stock is currently may be approaching overbought.
- Anticipated earnings release is in 86 days.
What The Experts Say On Newmont
Over the past month, 2 industry analysts have shared their insights on this stock, proposing an average target price of $51.5.
- An analyst from Macquarie downgraded its action to Outperform with a price target of $45.
- In a cautious move, an analyst from BMO Capital downgraded its rating to Outperform, setting a price target of $58.
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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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