Long-Term Bearish Strategy In Newmont

A trader is using long-term options to play Newmont Mining instead of taking a direct position in the stock.

NEM is up 0.98 percent to trade at $55.80 this morning as precious metals run higher. The gold and copper producer was holding above $56 last week, trading just shy of $58, its highest levels since the start of March. The shares formed a double bottom at $44, the second bounce coming in early August.

Topping the option volume in the name is the action in the January 2014 57.50 puts. These contracts traded for $10.30 against open interest of 2,077 and appear to have been bought.

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