Buy Alert: June 14, 2016

| June 14, 2016

Buy Alert:  June 14, 2016

 

Trade Details

Buy Newmont Mining (NEM) July 15th 33 Puts for $1.20 or better (lower)

 

Why?

The entire world seems to be getting long gold.  I’m not generally a contrarian but it seems to me that the rush into gold is a bit overblown.  NEM has already had a good year… up 100% year-to-date!   But, at 192x earnings, the buying frenzy in NEM is bordering on bubble territory.  We’re going to take a bearish position in NEM for the next month.

Let’s buy July puts.  Conservative investors can take profits at $31.50.  Aggressive investors can hold to $29.  For risk control, conservative traders should exit at $36.50, while more aggressive traders can hold to $38.

 

Recent Activity

Newmont Mining

 

Category: OTW Buy Alerts