Investors see Newmont on solid ground
Traders are looking for Newmont Mining to hold its ground before quarterly results next month.
optionMONSTER's monitoring programs show that 10,000 February 17.50 puts were sold mostly for $1 at the same second yesterday. This is clearly a new position, as open interest in the strike was a mere 11 contracts before the trade occurred.
Short puts lock in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think that the risk of a big drop is limited. (See our Coaching section)
NEM rose 5.94 percent to $17.67 yesterday but is down 9 percent in the last three months. The mining company is scheduled to report earnings after the close on Feb. 17.
Overall option volume in the name was 3 times greater than average yesterday.
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