Newmont (NEM) stock is up over 26% year-to-date due to a supply crunch driven by monetary and industrial demand. While long-term growth potential remains, a short-term lull may offer profit opportunities for bearish traders. Volatility skew shows a preference for call options, signaling upside potential but also potential for short-term corrections.

Backwardation in silver prices has positively impacted Newmont stock, attracting new investors but also increasing short-term risk. Unusual options activity suggests a bullish sentiment but also indicates hedging for risk management. Temporary corrections have occurred in the past and may happen again, creating profit opportunities for traders.

The Black-Scholes model forecasts a wide dispersion range for Newmont stock, indicating potential for price movement between $117.68 and $134.17. Markov property analysis suggests a narrowing of this range, with a focus on the current upward trend and potential for short-term negative shifts. A bear put spread strategy may capitalize on potential downside movements in NEM stock.

Read more at Barchart: Volatility Skew is Sending a Very Clear Message About Newmont’s (NEM) Golden Rally