Spotlight on Newmont: Analyzing the Surge in Options Activity

Whales with a lot of money to spend have taken a noticeably bearish stance on Newmont.

Looking at options history for Newmont NEM we detected 35 trades.

If we consider the specifics of each trade, it is accurate to state that 37% of the investors opened trades with bullish expectations and 62% with bearish.

From the overall spotted trades, 18 are puts, for a total amount of $2,769,216 and 17, calls, for a total amount of $1,161,604.

Latest Startup Investment Opportunities:

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 $47.5 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 $47.5, over the past month.

Newmont Option Volume And Open Interest Over Last 30 Days

Largest Options Trades Observed:

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.

Newmont's Current Market Status

• Trading volume stands at 8,316,643, with NEM's price down by -0.15%, positioned at $29.82.
• RSI indicators show the stock to be may be approaching oversold.
• Earnings announcement expected in 57 days.

Professional Analyst Ratings for Newmont

A total of 2 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $48.0.

• An analyst from BMO Capital has decided to maintain their Outperform rating on Newmont, which currently sits at a price target of $56.
• An analyst from RBC Capital persists with their Sector Perform rating on Newmont, maintaining a target price of $40.

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.