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Trade Alert - (NEM) September 16, 2024 - BUY

Trade Alert

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.


Alert

 

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.

 

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https://www.madhedgefundtrader.com/wp-content/uploads/2016/02/Alert-e1457452190575.jpg 135 150 april@madhedgefundtrader.com https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png april@madhedgefundtrader.com2024-09-16 11:37:182024-09-16 12:25:33Trade Alert - (NEM) September 16, 2024 - BUY

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There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.

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