Newmont Corporation is the world's largest gold-mining company, with major operations in North America, South America, Africa, and Australia. Its portfolio is centered on gold, with added production of copper, silver, zinc, and lead as byproducts. Newmont generates substantial free cash flow when gold prices are favorable, but its earnings are highly sensitive to gold prices, production costs, operating performance, and geopolitical risks. For us investors, it is best viewed as a large-scale, diversified gold producer offering significant leverage to higher gold prices, but with considerably more commodity and operational risk than a typical large-cap technology company.
As preferred, there is no quarterly earnings report prior to the options expiration date. CFRA has a Strong Buy rating on Newmont and it also appeared on my Key Metrics for Comparing Companies stock screener by passing all criteria therein:
As detailed below, a potential return-on-investment result is: +1.5% absolute return (equivalent to +56.3% annualized
return-on-investment for the next 10 days) if the stock is assigned on the Sept 25th, 2026 options expiration date.
Newmont Corporation (NEM) -- New Covered Calls Position
The buy/write transaction was:
9/15/2026 Bought 200 Newmont Corp shares @ $122.33.
9/15/2026 Sold 2 Newmont 9/25/2026 $118.00 Call options @ $6.13.
Note: the Implied Volatility of the Call options was 43.9% when this buy/write transaction was executed. I like to sell Calls when their stock is oversold and the Implied Volatility moves higher. With Newmont's RSI(2) at only 9.6, this is the case with this Covered Calls position.
A possible overall performance result (including commissions) for this Newmont Corporation Covered Calls position is as follows:
Covered Calls Cost Basis: $23,241.34
= ($122.33 - $6.13) * 200 shares + $1.34 commission
Net Profit Components:
(a) Options Income: +$1,224.66
= ($6.13 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If shares assigned at the $118.00 strike price at the 9/25/2026 options expiration): -$866.00
+($118.00 - $122.33) * 200 shares
Total Net Profit (If Newmont Corp. shares assigned at $118.00 strike price at the Sept 25th, 2026 expiration): +$358.66
= (+$1,224.66 options income + $0.00 dividend income - $866.00 capital appreciation)
Potential Absolute Return-on-Investment: +1.5%
= +$358.66/$23,241.34
Potential Annualized Return-on-Investment: +56.3%
= (+$358.66/$23,241.34) * (365/10 days)
