When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.
Trade Alert - (NEM) – BUY
BUY the Newmont Mining (NEM) October 2024 $45-$47.50 in-the-money vertical Bull Call debit spread at $2.25 or best
Opening Trade
9-16-2024
expiration date: October 18, 2024
Portfolio weighting: 10%
Number of Contracts = 50 contracts
Stock players simply buy the (NEM) shares, which probably have a 100% move in them over the next three years.
With the stock market flip-flopping on a daily basis along with volatility, gold (GLD) is holding up incredibly well. When you throw bad news on a stock, and it refuses to go down, buy it with both hands.
A Fed interest rate cut of 25 basis points is now a certainty on September 18, and all falling interest rate plays in the stock market are in play. Falling rate plays and could be the trade for the rest of 2024.
It is all very gold-positive.
This is all on top of a major rotation in the market underway, out of technology stocks that have been leading all year into commodity stocks. We have already seen major upside breakouts in gold and silver, and copper is jumping on the bandwagon.
I am therefore buying the Newmont Mining (NEM) October 2024 $45-$47.50 in-the-money vertical Bull Call debit spread at $2.25 or best.
Don’t pay more than $2.35 or you’ll be chasing.
DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.
Simply enter your limit order, wait five minutes, and if you don’t get done, cancel your order and increase your bid by 2 cents with a second order.
This is a bet that Newmont Mining (NEM) will not fall below $$47.50 by the October 18 option expiration day in 21 trading days.
Here are the specific trades you need to enter this position:
Buy 50 (NEM) October 2024 $45.00 calls at………….………$9.00
Sell short 50 (NEM) October 2024 $47.50 calls at.............$6.75
Net Cost:……………………..…….………..………….….................$2.25
Potential Profit: $2.50 - $2.25 = $0.25
(50 X 100 X $0.25) = $1,250 or 14.94% in 24 trading days.
If you are uncertain on how to execute an options spread, please watch my training video by clicking here.
The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep in-the-money spread trades can be enormous.
Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.
Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.
