DailyPlay – Opening Trade (NEM) Closing Trade (GLD) – March 18, 2025

Closing Trade

• GLD – 68% gain: Buy to Close 3 Contracts (or 100% of your Contracts) April 4 $269/$260 Put Vertical Spreads @ $0.97 Debit. DailyPlay Portfolio:  By Closing all 3 Contracts, we will be paying $291. We initially opened these 3 Contracts on March 5 @ $3.00 Credit. Our gain, therefore, is $609.

NEM Bullish Opening Trade Signal

Investment Rationale

Newmont Corporation (NEM) – Following the company’s February 20, 2025, earnings report, the stock fell 12%, then consolidated before stabilizing and rebounding near its pre-earnings price. The closing price on the day of the earnings report, $48.09, is now acting as resistance. Our upside target for the stock is $56 if this level is broken. Recent record highs in gold prices may have bolstered NEM’s recovery, supporting its upward momentum.

Fundamentally, NEM appears moderately undervalued, trading at a forward price-to-earnings (P/E) ratio of 12.36, slightly below the industry median of 12.45. While its expected EPS growth is lower at 7.33% compared to the industry’s 22.12%, NEM’s net margins have recently improved to 17.92%, outperforming the industry average of 11.17%. Despite modest revenue growth of 1.69% versus the industry’s 7.45%, its improved margins and attractive valuation suggest meaningful upside potential.

NEM – Daily

Trade Details

Strategy Details

Strategy: Long Call

Direction: Bullish Call

Details: Buy to Open 6 Contracts NEM April 17 $45 Calls @ $3.60 Debit per Contract.

Total Risk: This trade has a max risk of $2,160 (6 Contracts x $360) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $360 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue higher off recent support.

1M/6M Trends: Bullish/Bullish

Relative Strength: 4/10

OptionsPlay Score: 81

Stop Loss: @ $1.80 (50% loss of premium)

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Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Monday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

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