DailyPlay – Opening Trade (NEM) – October 21, 2025

NEM Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
Newmont Corporation (NEM) continues to show strong momentum as gold prices remain elevated and capital rotation favors precious metals over broader equities. With earnings scheduled for Thursday, October 23rd, after the close, the setup presents an appealing pre-earnings opportunity for bullish positioning. The company has exceeded both revenue and EPS expectations in each of the past three quarters, demonstrating consistent operational efficiency and strong cost management amid fluctuating commodity prices. Given this trend of outperformance and a still-attractive valuation discount versus peers, upside continuation toward the $100 range appears likely.

Technical Analysis
NEM has confirmed a breakout above the critical $90 resistance level, which has now established itself as solid support following a successful retest. The stock is consolidating just below $95, trading comfortably above its 20-day, 50-day, and 200-day moving averages — clear evidence of a well-established uptrend. The RSI near 65 reflects healthy upside momentum without signs of overbought conditions. A push through $95 could ignite the next leg higher toward $100, with the upcoming earnings report potentially serving as the trigger.

Fundamental Analysis
Despite trading at a discount to peers, Newmont’s profitability profile remains among the best in the metals and mining sector, underpinned by disciplined capital allocation and expanding margins. The company’s earnings consistency and moderate growth expectations, combined with its solid dividend yield, provide a defensive yet growth-oriented appeal.

• Forward PE Ratio: 13.79x vs. Industry Median 19.43x
• Expected EPS Growth: 20.96% vs. Industry Median 23.21%
• Expected Revenue Growth: 5.36% vs. Industry Median 6.86%
• Net Margins: 30.50% vs. Industry Median 23.60%

Options Trade
The proposed trade is a NEM Nov 28, 2025 $94/$110 Call Vertical for a debit of $5.54 ($554 total risk). This position defines risk while targeting a potential $1,046 max reward, offering an attractive risk/reward ratio of roughly 1:1.9. The $94 long strike aligns with current support, while the $110 short strike targets the upper end of the next major resistance zone. This structure captures bullish upside through earnings and into the following month, balancing directional exposure with controlled risk in case of post-earnings volatility.

NEM – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 3 NEM Nov 28 $94/$110 Call Vertical Spreads @ $5.54 Debit per Contract.

Total Risk: This trade has a max risk of $1,662 (3 Contracts x $554) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $554 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue higher over the duration of this trade.

1M/6M Trends: Bullish/Bullish

Relative Strength: 10/10

OptionsPlay Score: 102

Stop Loss: @ $2.77 (50% loss of premium)

View NEM Trade

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. 

View NEM Trade