Put buying targets Newmont Mining
Mike Yamamoto | [email protected]
optionMONSTER's Depth Charge system detected the purchase of 4,000 January 22 puts for $1.17 this morning, including a single print of 3,315. This is clearly fresh buying, as open interest in the strike was just 277 contracts at the start of the session.
These puts are looking for NEM to fall below the $22 strike price by early next year. But they will expire worthless if the stock remains above that level.
NEM is down 0.98 percent to $28.89 today. The stock bounced at the $28 level last week but is still down about 50 percent from its 52-week just shy of $58 reached last September.
The gold and copper producer has been trying to recover from steep losses along with the rest of the precious-metal mining sector. The company is scheduled to report second-quarter results on July 26 and will hold its annual investor day on Aug. 1.
Overall puts in the name outnumber calls by more than 2 to 1.