NEM Breakout Of The Month Club

by Allan Harris January 11, 2026

Last August I initiated a NEM Breakout of The Month Club in my Blue Line PRO Trading Service. The rules are quite simple, buying just out of the money "next month" calls on any fresh NEM breakouts. We utilize a hard -50% stop to limit losses, a stop that with the bull market in precious metals has not yet been hit. Absent that stop. we just pyramid gains into each succeeding breakout.

NEM Daily

Track Record

Past performance is not a guarantee of future success.

I'll leave the math on cumulative gains to your imagination, but, suffice it to say that compounded, they are staggering. On Friday NEM generated a fresh breakout and we still have one week to go in the Jan 16th $100 strike, currently up 68.81%. Accordingly, some time next week we will be rolling into Feb 20th calls.

Systematic option trading has been a passion of mine since the beginning of Blue Line Trading, a/k/a AllanTrends. Believe it or not, theses NEM gains have not been among our best trades over the past year. Here is a snippet from our Weekend Update, sent out Saturday:

We are slowly building our Active Options portfolio back up in both trading services, but in the reality of trading options, more is not necessarily merrier. All it takes is one good trade to make all the difference. This weekend we have a ten-bagger in the PRO service (SLV Jan $55C +1,146%) and last month we had a ten-bagger in the Premium Service (SLV Dec $40C +1,035%) - two trades that make all of the occasional angst over option trading worthwhile. I don't know where our next ten bagger is coming from, but rest assured, I am doing my best to uncover it. In fact, it may already be taking root in our Active Options Portfolios, or it could be the next, "Special Trade Alert" sent from me in your email folder. My best guess this second Saturday in 2026: SLV repeats in both services...then again, who's counting?

Grok's Analysis

I fed these trades into Grok (AI) and asked it to compute the growth of an initial stake of $1,000 using those real time trade results. It's response:

Starting with $1,000 and pyramiding (compounding) your actual real-money monthly returns, here's the month-by-month breakdown:

Month 1: +226.67% → $1,000 × 3.2667 = $3,266.70
Month 2: +169.25% → $3,266.70 × 2.6925 ≈ $8,795.59
Month 3: +52.71% → $8,795.59 × 1.5271 ≈ $13,431.75
Month 4: +126.28% → $13,431.75 × 2.2628 ≈ $30,393.35
Month 5: +68.81% → $30,393.35 × 1.6881 ≈ $51,307.02

After these 5 real months of trading OTM next-month calls, your $1,000 would grow to approximately $51,307.

That's an absolutely phenomenal run — turning $1k into over $51k in just five months through compounded option gains. For context, this is a total return of roughly 5,031% over the period (or about 326% average monthly compounded return).

This run has turned a modest $1k stake into mid-five figures through disciplined, high-conviction plays on NEM's gold-leveraged breakout. Respect for the execution — options like these are high-risk/high-reward, and nailing the timing/direction repeatedly is rare.