NEM Bull Call Spread Strategy
NEM (Newmont Corporation), in the Basic Materials sector, (Gold industry), listed on NYSE.
Newmont Corporation engages in the production and exploration of gold. It also explores for copper, silver, zinc, and lead. The company has operations and/or assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, and Ghana. As of December 31, 2021, it had proven and probable gold reserves of 92.8 million ounces and land position of 62,800 square kilometers. The company was founded in 1916 and is headquartered in Denver, Colorado.
NEM (Newmont Corporation) trades in the Basic Materials sector, specifically Gold, with a market capitalization of approximately $127.00B, a trailing P/E of 15.26, a beta of 0.45 versus the broader market, a 52-week range of 48.4-134.88, average daily share volume of 9.5M, a public-listing history dating back to 1980, approximately 44K full-time employees. These structural characteristics shape how NEM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.45 indicates NEM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. NEM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a bull call spread on NEM?
A bull call spread buys an at-the-money call and sells an out-of-the-money call at a higher strike for defined risk and defined reward bounded by the strike width.
Current NEM snapshot
As of May 15, 2026, spot at $109.04, ATM IV 46.66%, IV rank 51.62%, expected move 13.38%. The bull call spread on NEM below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.
Why this bull call spread structure on NEM specifically: NEM IV at 46.66% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 13.38% (roughly $14.59 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NEM expiries trade a higher absolute premium for lower per-day decay. Position sizing on NEM should anchor to the underlying notional of $109.04 per share and to the trader's directional view on NEM stock.
NEM bull call spread setup
The NEM bull call spread below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With NEM near $109.04, the first option leg uses a $109.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NEM chain at a 28-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 NEM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $109.00 | $5.98 |
| Sell 1 | Call | $114.00 | $3.88 |
NEM bull call spread risk and reward
- Net Premium / Debit
- -$210.00
- Max Profit (per contract)
- $290.00
- Max Loss (per contract)
- -$210.00
- Breakeven(s)
- $111.10
- Risk / Reward Ratio
- 1.381
Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-call strike plus net debit.
NEM bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on NEM. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$210.00 |
| $24.12 | -77.9% | -$210.00 |
| $48.23 | -55.8% | -$210.00 |
| $72.33 | -33.7% | -$210.00 |
| $96.44 | -11.6% | -$210.00 |
| $120.55 | +10.6% | +$290.00 |
| $144.66 | +32.7% | +$290.00 |
| $168.77 | +54.8% | +$290.00 |
| $192.88 | +76.9% | +$290.00 |
| $216.98 | +99.0% | +$290.00 |
When traders use bull call spread on NEM
Bull call spreads on NEM reduce the cost of a bullish NEM stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
NEM thesis for this bull call spread
The market-implied 1-standard-deviation range for NEM extends from approximately $94.45 on the downside to $123.63 on the upside. A NEM bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on NEM, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current NEM IV rank near 51.62% is mid-range against its 1-year distribution, so the IV signal is neutral; the bull call spread thesis on NEM should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, NEM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NEM-specific events.
NEM bull call spread positions are structurally moderately bullish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. NEM positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NEM alongside the broader basket even when NEM-specific fundamentals are unchanged. Long-premium structures like a bull call spread on NEM are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current NEM chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on NEM?
- A bull call spread on NEM is the bull call spread strategy applied to NEM (stock). The strategy is structurally moderately bullish: A bull call spread buys an at-the-money call and sells an out-of-the-money call at a higher strike for defined risk and defined reward bounded by the strike width. With NEM stock trading near $109.04, the strikes shown on this page are snapped to the nearest listed NEM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NEM bull call spread max profit and max loss calculated?
- Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-call strike plus net debit. For the NEM bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 46.66%), the computed maximum profit is $290.00 per contract and the computed maximum loss is -$210.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NEM bull call spread?
- The breakeven for the NEM bull call spread priced on this page is roughly $111.10 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current NEM market-implied 1-standard-deviation expected move is approximately 13.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a bull call spread on NEM?
- Bull call spreads on NEM reduce the cost of a bullish NEM stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
- How does current NEM implied volatility affect this bull call spread?
- NEM ATM IV is at 46.66% with IV rank near 51.62%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.