Option update 10-31-07: Newmont Mining volatility at 38 as NEM rallies 8% on EPS, Gold near $800

Posted Oct 31st 2007 4:29PM by Paul Foster
Filed under: Bank of America (BAC), Newmont Mining (NEM), Options, Commodities, S and P 500

Newmont Mining Corporation (NYSE: NEM), the world's largest non-hedged gold producer, recently up $4.13 to $50.59:

NEM reported third quarter earnings per share of 72 cents verses consensus estimates of 25 cents. Gold was recently up .95% to $795.30 according to Bloomberg. NEM call option volume of 68,640 contracts compares to put volume of 36,594 contracts. NEM November option implied volatility of 38 was above its 26-week average of 32 according to Track Data, suggesting non-directional price risks.

Bank of America Corporation (NYSE: BAC) recently up 21 cents to $48.22:

BAC call option volume of 13,902 contracts compared to put volume of 4,588 contracts. BAC November option implied volatility of 28 was above its 26-week average of 23 according to Track Data, suggesting larger risk.

Volatility Index: VIX down 2.35 to 18.34, suggesting less risk after rate cut.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

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