Decoding Newmont's Options Activity: What's the Big Picture?

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 15 uncommon options trades for Newmont.

This isn't normal.

The overall sentiment of these big-money traders is split between 40% bullish and 46%, bearish.

Out of all of the special options we uncovered, 6 are puts, for a total amount of $540,856, and 9 are calls, for a total amount of $414,514.

Predicted Price Range

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $40.0 to $60.0 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 9880.77, with a total volume reaching 12,645.00. 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 $40.0 to $60.0, throughout the last 30 days.

Newmont Option Volume And Open Interest Over 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.

Having examined the options trading patterns of Newmont, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

Where Is Newmont Standing Right Now?

• Currently trading with a volume of 2,787,429, the NEM's price is down by -0.55%, now at $51.02.
• RSI readings suggest the stock is currently may be approaching overbought.
• Anticipated earnings release is in 43 days.

What Analysts Are Saying About Newmont

2 market experts have recently issued ratings for this stock, with a consensus target price of $58.5.

• An analyst from Argus Research upgraded its action to Buy with a price target of $58.
• An analyst from Scotiabank has elevated its stance to Sector Outperform, setting a new price target at $59.

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.