Spotlight on Newmont: Analyzing the Surge in Options Activity

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 13 uncommon options trades for Newmont.

This isn't normal.

The overall sentiment of these big-money traders is split between 38% bullish and 53%, bearish.

Out of all of the special options we uncovered, 5 are puts, for a total amount of $298,050, and 8 are calls, for a total amount of $674,027.

Expected Price Movements

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $30.0 to $55.0 for Newmont over the last 3 months.

Volume & Open Interest Trends

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 $30.0 to $55.0, over the past month.

Newmont Call and Put Volume: 30-Day Overview

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.

Newmont's Current Market Status

• With a volume of 2,047,338, the price of NEM is down -2.67% at $41.13.
• RSI indicators hint that the underlying stock may be approaching overbought.
• Next earnings are expected to be released in 79 days.

What The Experts Say On Newmont

3 market experts have recently issued ratings for this stock, with a consensus target price of $47.0.

• An analyst from TD Securities has decided to maintain their Hold rating on Newmont, which currently sits at a price target of $48.
• An analyst from TD Securities persists with their Hold rating on Newmont, maintaining a target price of $48.
• An analyst from Citigroup has decided to maintain their Buy rating on Newmont, which currently sits at a price target of $45.

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.