Equatorial Resources Surges 5.2% Amid Gold Sector Rally and Volatile Options Activity

Summary
• Equatorial Resources (EQX) trades at $14.8355, up 5.21% intraday, breaking above its 52-week high of $15.10.
• Gold sector ETFs like GDXJ and GDX surge 4.51% and 3.51%, respectively, amplifying EQX’s momentum.
• Options volume spikes to 7,183,281 shares, with call options on $15 strike prices dominating the chain.
• The stock’s 5.71% intraday range and 257x P/E ratio highlight speculative fervor amid a broader gold market rally driven by geopolitical tensions and rate-cut expectations.

Gold Sector Momentum and Technical Buy Signals Drive EQX Higher
Equatorial Resources’ 5.21% intraday surge aligns with a broader gold sector rally fueled by geopolitical tensions and expectations of U.S. rate cuts. Gold prices hit record highs as investors seek safe-haven assets, with sector ETFs like GDXJ and GDX surging 4.51% and 3.51%. Technical indicators for EQX, including a double bottom formation and bullish MACD crossover, reinforce the rally. The stock’s 5.71% intraday volatility and 257x P/E ratio suggest speculative positioning, while options data—particularly high-volume call options on $15 strike prices—signal aggressive bullish bets.

Gold Sector Leaders Fuel Rally as EQX Outperforms Peers
The gold sector’s 1.45% intraday gain, led by ETFs like GDXJ (4.51%) and GDX (3.51%), underscores broad-based momentum. EQX’s 5.21% surge outpaces sector ETFs, reflecting its speculative profile and technical buy signals. While GDXJ and GDX track miners, EQX’s performance is more tied to gold’s physical price and geopolitical tailwinds. The sector’s rally is underpinned by central bank gold purchases and a weakening dollar, with EQX’s high P/E ratio and options activity indicating it’s a focal point for leveraged bets.

Capitalizing on Gold’s Rally: ETF and Options Plays for EQX Bulls
• MACD: 0.468 (bullish crossover), RSI: 51.0 (neutral), Bollinger Bands: $12.44–$15.08 (current price near upper band).
• 200-day MA: $8.67 (far below current price), 30-day MA: $13.35 (support near $13.86).
• GDXJ (4.51%) and GDX (3.51%) offer leveraged exposure to the gold sector, aligning with EQX’s momentum.
• Top Options:
• EQX20260220C15: Call, $15 strike, 2026-02-16 expiry, IV 57.43%, leverage 10.47%, delta 0.55, theta -0.016, gamma 0.112, turnover $1.3M. High leverage and moderate delta suggest strong upside potential if EQX breaks $15.
• EQX20260417C15: Call, $15 strike, 2026-04-17 expiry, IV 52.76%, leverage 8.09%, delta 0.57, theta -0.0099, gamma 0.088, turnover $31K. Longer-dated option with balanced risk/reward for a sustained rally.
• Payoff Estimation: A 5% upside to $15.58 would yield $0.58 profit per share for EQX20260220C15 and $1.08 for EQX20260417C15. Aggressive bulls may consider EQX20260220C15 into a break above $15.

Backtest Equatorial Resources Stock Performance
Equinox Gold (NYSE: EQX) has experienced a total of 66 days with intraday surges of 5% or more from 2022 to the present. The backtest reveals a mixed short-to-medium-term performance following these surge events:1. Immediate Pullback: The median next-day return was -2.1%, and the win rate was 35%. This indicates that half of the time, the stock experienced a decline following a significant intraday surge.2. Momentum Emergence: However, momentum emerged after day 10, with the cumulative excess return turning significantly positive by day 22. The peak median gain during this period was approximately +12% on day 26.3. Optimal Holding Period: The optimal holding period after a surge is roughly 2–4 weeks, as gains faded beyond this period.

Positioning for Gold’s Next Move: EQX and Sector ETFs in Focus
Equatorial Resources’ 5.21% surge reflects a confluence of gold sector strength, technical buy signals, and speculative options activity. The stock’s proximity to its 52-week high and the sector’s 1.45% intraday gain suggest momentum is intact. Investors should monitor the $15 level as a critical psychological and technical threshold. For leveraged exposure, GDXJ (4.51%) and GDX (3.51%) offer amplified sector bets. If EQX breaks $15, the EQX20260220C15 call option could deliver outsized returns. Watch for a continuation of gold’s rally or a pullback to key support at $13.86.