Is Newmont on solid ground?
Traders are looking for Newmont Mining to hold its ground.
optionMONSTER's monitoring systems detected the sale of 6,000 December 16 puts for $0.33. Volume surpassed open interest of 1,440 contracts, an indication new money was put to work.
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 the risk of a big drop is limited. (See our Coaching section.)
NEM fell 0.68 percent to $17.56 yesterday and is down 7 percent in the last month. It's been falling along with other gold miners as traders brace for the first Federal Reserve interest-rate hike in nine years.
Overall option volume was twice the daily average.
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