Unusual Options Activity: Newmont Mining (NEM)

Gold miner and explorer Newmont Mining (NEM) is trending higher, but shares are still down 5% over the past year. One trader is betting the stock will break higher in the next 18 months.

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  • That’s based on the January 2026 $65 calls. With 609 days until expiration, 5,016 contracts traded compared to a prior open interest of 136, for a 37-fold rise in volume on the trade. The buyer of the calls paid $2.82 to make the bullish bet.

    Newmont shares recently traded for about $43. So the stock would need to rise by $22, or 51%, for the option to move in-the-money. It’s also well over the stock’s prior 52-week high of $46.75.

    Shares of the gold miner tend to move up or down with the price of gold. In a strong gold market, prices of gold miners tend to see even larger percentage moves higher.

    Thanks to rising gold prices, revenues are up 50% over the past year, and shares are valued at 13 times forward earnings.

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  • Action to take: Investors may like shares here, as they’re inexpensive, and trending higher. A further move higher in gold prices is likely, which could lead to further gains.

    At current prices, Newmont also pays a 2.3% dividend.

    For traders, the January 2026 calls have plenty of time to play out. And if there’s a big spike higher in shares, the option could see triple-digit returns.

     

    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.

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