Weekly Pick: ORLA
Precious metals rotation and multi-timeframe support
I spent most of this morning scanning charts and one thing kept showing up over and over again: precious metals names pulling back into durable support.
These are all profitable operators with strong institutional ownership and technical setups that are clean. And as bonus, they’ve all got usable options liquidity.
ORLA stands out in a sector that looks highly attractive.
Orla Mining Ltd.
Orla Mining is a gold producer focused on operating and developing open-pit mining assets in North America. Its flagship operation is the Camino Rojo mine in Zacatecas, Mexico, which produces gold and silver using heap leach processing. The company is also advancing additional development projects, including the South Railroad project in Nevada and the Cerro Quema project in Panama.
ORLA generates revenue primarily from gold production and benefits directly from rising gold prices, expanding production capacity, and operational efficiency improvements. The company has rapidly scaled production and cash flow over the last several years while continuing to expand reserves and future development opportunities.
Fundamentals and ownership
Market cap $4.61B
Current P/E 20.15 | Forward P/E 7.56
EPS growth next year 86.68%
Exponential sales growth since 2022
Profit margin 19.45%
ROE 41.97%
Institutional ownership 69%
Insider ownership 11%
Debt levels remain manageable
October options liquidity is solid
Technicals
Daily
Price got hit hard with the rest of the sector and dropped directly into a much more interesting location. RSI cooled off dramatically while price approached major support and the Weekly 50 EMA
Weekly
The broader trend still looks healthy despite the recent pullback. The stock spent a long time building a base before launching higher and this is the first meaningful reset after a major expansion phase. The risk level is clean here and this is the timeframe I’m using to manage risk.
Monthly
After an outsized multi-year the stock pullback and is still holding above longer-term support so the broader structure remains intact, and the risk level is really clean
Risks
Gold names can be volatile and headline-driven.
If gold rolls over hard, the entire sector can get dragged lower regardless of individual fundamentals. Miners are also famous for violent fakeouts and failed breakouts.
How I’m trading it
My trade is shares and October calls.
The longer-dated optionality is relatively inexpensive considering the kind of percentage moves these names can produce once momentum comes back into the sector.
I’m trading the setup and the location here, and I’m not a long-term gold investor.
I trade what I post.
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