A large investor is betting on Newmont Mining's uptrend to continue through early 2017.
optionMONSTER's monitoring system detected the sale of 13,778 January 35 calls for $8.50 and the purchase of 13,778 January 44 calls for $4 yesterday. Volume was below open interest in the lower strike, indicating that the trader is taking profits and using the remaining proceeds to roll the bullish position to a higher strike.
Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)
NEM rose 2.3 percent to $40.88 yesterday and is up 30 percent in the last three months. The precious-metals miner is scheduled to report earnings after the close on July 20.
Overall option volume was 3 times greater than average in the name yesterday.
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