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.

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

Plan:
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

Newmont1 e1296496686534 Buy Gold with Newmont Mining Calls

Newmont Mining


Article printed from InvestorPlace Media, http://investorplace.com/2011/01/gold-newmont-mining-calls-options/.

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