Bulls dig for gold in Newmont Mining
Mike Yamamoto | [email protected]
More than 15,500 December 28 calls have traded in a strong buying pattern for $1.28 to $1.82, according to optionMONSTER's Heat Seeker tracking system. The volume is triple the previous open interest, indicating that new positions are being established.
Our scanners also detected buying in the November Weekly 29.50 calls that expire on Friday. The long calls at both strikes is looking for NEM to rally in coming weeks, but the contracts will quickly lose value if shares stall or pull back. (See our Education section)
NEM is up 1.04 percent to $28.12 this afternoon. The gold and copper producer fell to $25.33 on Oct. 15, its lowest price since November 2008, but has drifted higher since and is trying to get back above its 50-day moving average.
The company issued preliminary third-quarter results on Oct. 10 and will release its final report on Thursday after the market closes.
Total option volume in Newmont tops 39,000 contracts, more than double its daily average for the last month. Overall calls outnumber puts by nearly 5 to 1, a reflection of the session's bullish bias.