Buy Gold with Newmont Mining Calls

Dig into this gold miner with the June option


I realize that gold has been losing its luster (super bad joke I know) lately but I think it is still a buy. There are a lot of stocks in the group hitting support right now and options pricing is pretty attractive for those seeking options trading information. I am picking on Newmont Mining (NYSE: NEM) because it has shown some great performance over the last few quarters and the liquidity in the option chain sheet is good. I think an alternative to this would be an outright long position in some of the micro’s in the group.

Go long NEM June 62.50 Calls in the range of $1.55.

My target is to exit if the stock gets to $65, unless there is some surprising momentum that justifies holding on for a longer period. I am a little concerned about time value erosion so as we get closer to March, I may consider an early exit or modification if the stock has remained flat or slow.

Newmont Mining

Newmont Mining

Newmont Mining

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