Unusual Options Activity In Newmont Mining
One week ago, I talked about Gold,
U.S. dollar flowsinto gold-backed ETFs, including the popular SPDR Gold Shares GLD, +0.03% arenow positive for the year, having raised $354 million in November, a secondstraight month for inflows, the WGC reported. U.K. inflows to gold ETFs werealso strong as Brexit concerns have ramped up alongside a softening insterling, said Juan Carlos Artigas, the WGC’s director of investment research.The SPDR Gold Shares was up 0.1% Thursday after closing up 0.6% Wednesday.
Thus, it nice to see inflows into gold-backed ETFs because that validates what I’m seeing on the charts. Price also formed the pattern I look for in reversals and just missed a daily supply at $1190.
Gold saw an increase of more than 2% last week and traded around its five-month high. Last week, U.S. nonfarm payrolls increased by 155,000 last month, but below the economists median forecast of 200,000 jobs. The jobless claims also fell less than expected last week. With the data announcement last week, one has to expect falling U.S. interest rates and a declining US dollar. A slowdown in global markets and uncertainty in the global markets is also favoring hard assets such as Gold.
Newmont Mining Corporation, operates in the mining industry. The company primarily acquires,develops, explores for, and produces gold, copper, and silver. Its operation and/or assets are located in the United States, Australia, Peru, Ghana, and Suriname. As of February 22, 2018, the company had proven and probable gold reserves of 68.5 million ounces and an aggregate land position of approximately 23,000 square miles.
Yesterday, I noticed some unusual options activity in the Newmont Mining. Over 8000 of the February 2019 Call options with a strike price of $36 were purchased today.
Just like Gold, Newmont Mining is making a smiley face on the daily chart.
And when looking at the weekly chart, there is room for price to move up to the weekly supply at $36.
Will the Smart Money be right on the call…stay tune?
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
Very interesting.
BTW - If you're writing about gold, use the tag #steemsilvergold as there are a heap of us gold bugs there who lap up this sort of content :)
thanks for the tag, will certainly use it in the future.
Gold miners are always an interesting industry to watch but have never really proven to be better than the actual asset. While dividends are enticing, I prefer the Gold...
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Totally agree, I'm looking to get into GLD shortly, but really should own some gold coins.