Option Bulls Hope to Strike Gold in Newmont
"Fast Money" Contributor
NEM saw more than 5,000 March 65 calls change hands in a strong buying pattern, going mostly for $5.60 to $5.70, according to OptionMonster's real-time tracking systems. The volume was more than double the previous open interest at that strike.
The action followed call buying in the December 72.50 contracts last Thursday. Newmont's shares closed yesterday at $62.52, up 1.61 percent on the session.
Mining stocks plunged with the price of gold late last week, but traders apparently believe that the sector has hit a bottom. This week alone has seen bullish option plays in Yamana Gold on Monday, Ivanhoe Mines on Tuesday, Coeur d'Alene Mines on Wednesday, and Kinross Gold yesterday.
For the NEM calls bought yesterday to turn a profit, the stock would need to gain roughly 13 percent by the March expiration. Overall puts in the name outnumbered calls by more than 4 to 1 yesterday.
The company is scheduled to report third-quarter earnings results on Oct. 23.
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