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Newmont Mining Corp (NYSE: NEM) closed Thursday’s trading session at $55.37. In the past year, the stock has hit a 52-week low of $42.80 and 52-week high of $65.50. Newmont Mining stock has been showing support around $53.89 and resistance in the $57.69 range. Technical indicators for the stock are Bearish and S&P gives NEM a positive 4 STARS (out of 5) buy rating. For a hedged play on this stock, look at the Mar ’11 $55.00 covered call for a net debit in the $52.75 area. That is also the break-even stock price for this trade. This covered call has a duration of 50 days, provides 4.73% downside protection and an assigned return rate of 4.27% for an annualized return rate of 31.14% (for comparison purposes only). A lower-cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the NEM Jan ’12 $30.00 call and selling the Mar ’11 $55.00 call for a total debit of $23.18. The trade has a lifespan of 50 days and would provide 3.96% downside protection and an assigned return rate of 7.85% for an annualized return rate of 57% (for comparison purposes only). Newmont Mining has a current annual dividend yield of 1.07%. [ABR-Seven Summits Research]

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Maza Drilling is a Mexican company established in 2007 in Mazatlán, Sinaloa. Our Canadian founder, Mr. Guy de Launiere, has over 20 years of international experience managing diverse drilling operations. Maza Drilling strives to compete at the highest levels in terms of recovery, effectiveness, efficiency, and affordability at every project while keeping at the forefront of technology to meet our customer’s needs in this demanding market.