$NEM option bulls mine big profits

Option traders are mining big profits on bullish positions in Newmont Corporation (NEM) today.

On Mar. 1, Market Rebellion’s Unusual Activity Service found that 2,000 April $80 calls were bought as part of a bullish roll for $0.56 to $0.57 above the existing open interest of 430 with shares at $68.73.

Those calls have traded for up to $3.69 today, over 6 times their purchase prices. The stock rose 20.31% in the same time frame, illustrating the kind of leverage that can be achieved with options.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

NEM in late session trading is up 4.04% at $82.66.