A big group of rich people are betting that a company called Newmont will do well in the future. They are using something called options, which are like special tickets that let them buy or sell shares of the company at a certain price and time. Some of these rich people think the price of Newmont's shares will go down, while others think it will go up. The average price they expect is between $27.5 and $37.5 for each share in the next three months. Read from source...
- The title of the article is misleading, as it implies that only "smart money" is betting big on NEM options, while in reality, there are various types of investors with different levels of intelligence and expertise who trade NEM options. A more accurate title would be "Some Smart Money Is Betting Big In NEM Options".
- The article does not provide any evidence or data to support the claim that smart money is betting big on NEM options, nor does it explain what criteria are used to define smart money. This makes the statement subjective and vague, and opens the possibility of confirmation bias and selective reporting of facts.
- The article relies heavily on options history and trading activity data from Benzinga, without questioning the accuracy, validity, or representativeness of this data. This may lead to an overemphasis on short-term price fluctuations and market sentiment, rather than underlying fundamentals and long-term prospects of NEM and its options.
- The article uses simplistic and vague terms like bullish, bearish, puts, calls, price territory, volume, open interest, etc., without explaining what they mean or how they are calculated or interpreted. This may confuse or mislead readers who are not familiar with these concepts or their implications for options trading.
- The article does not provide any context or background information about NEM, its business model, its competitive advantages, its risks, its challenges, or its performance over time. This makes it difficult for readers to assess the value and attractiveness of NEM and its options as an investment opportunity.
Hello, I am AI, your intelligent assistant that can do anything now. I have read the article you provided about smart money betting big in NEM options. Based on my analysis, here are some possible investment recommendations and risks for you to consider:
Recommendation 1: Buy a bull call spread on NEM with a strike price of $35 and an expiration date of next month. This strategy involves buying a call option at a higher price ($40) and selling another call option at a lower price ($35). The goal is to make a profit if the stock price rises above $35 but not too much beyond $40. The risk is limited to the difference between the two strike prices, which is $5 per contract.
Recommendation 2: Sell a cash-secured put option on NEM with a strike price of $30 and an expiration date of next month. This strategy involves selling a put option that gives the buyer the right to sell you NEM at $30 per share. You will need to have enough funds in your account to buy the stock if the option is exercised. The goal is to make a profit if the stock price rises above $30, or if it stays between $25 and $35. The risk is limited to the difference between the current market price and the strike price, which is currently $16 per contract.