Spotlight on Newmont: Analyzing the Surge in Options Activity

Deep-pocketed investors have adopted a bullish approach towards Newmont NEM, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in NEM usually suggests something big is about to happen.

We gleaned this information from our observations today when Benzinga's options scanner highlighted 9 extraordinary options activities for Newmont. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 66% leaning bullish and 33% bearish. Among these notable options, 2 are puts, totaling $52,157, and 7 are calls, amounting to $312,428.

What's The Price Target?

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $32.5 to $50.0 for Newmont over the last 3 months.

Analyzing Volume & Open Interest

In today's trading context, the average open interest for options of Newmont stands at 3288.43, with a total volume reaching 1,522.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Newmont, situated within the strike price corridor from $32.5 to $50.0, throughout the last 30 days.

Newmont Option Activity Analysis: Last 30 Days

Significant Options Trades Detected:

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 end December 2023.

After a thorough review of the options trading surrounding Newmont, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Current Position of Newmont

• With a trading volume of 4,015,784, the price of NEM is up by 0.44%, reaching $41.83.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 49 days from now.

What Analysts Are Saying About Newmont

3 market experts have recently issued ratings for this stock, with a consensus target price of $49.0.

• An analyst from Scotiabank has decided to maintain their Sector Perform rating on Newmont, which currently sits at a price target of $48.
• An analyst from BMO Capital persists with their Outperform rating on Newmont, maintaining a target price of $54.
• An analyst from Bernstein persists with their Market Perform rating on Newmont, maintaining a target price of $45.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for Newmont, Benzinga Pro gives you real-time options trades alerts.