Hecla Mining Surges 10.5% on Intraday Rally—What’s Fueling the Momentum?

Summary
• Hecla Mining (HL) hits 52-week high of $21.84, up 10.49% from $19.73
• Q3 2025 earnings beat expectations with $0.15 EPS vs. $0.09 forecast
• Polaris Exploration Project approved in Nevada, with activities set for 2026
• S&P MidCap 400 index inclusion and 2026 Investor Day announcement drive optimism

Hecla Mining’s stock has surged to a 52-week high amid a confluence of bullish catalysts. The rally, fueled by outperforming Q3 earnings, regulatory approvals, and strategic index additions, has pushed the stock to $21.8, a 10.49% gain from its open. With the precious metals sector showing mixed momentum, investors are scrutinizing whether this move is a breakout or a correction.

Earnings Outperformance and Project Approvals Drive Hecla Mining’s Rally
Hecla Mining’s intraday surge is anchored by its Q3 2025 earnings report, which saw revenue of $410 million—$135 million above estimates—and EPS of $0.15, surpassing forecasts by 66.7%. The Polaris Exploration Project approval in Nevada, coupled with the company’s inclusion in the S&P MidCap 400, has amplified investor confidence. Additionally, the upcoming 2026 Investor Day and the CEO’s emphasis on debt reduction and silver-focused strategy have positioned HL as a high-conviction play in the precious metals sector.

Precious Metals Sector Gains Momentum as Newmont Leads with 4.66% Rally
The precious metals sector, led by Newmont (NEM) with a 4.66% intraday gain, has seen renewed interest amid gold prices near $2,900/oz. While NEM’s rally reflects broader gold demand, Hecla Mining’s 10.49% surge is more pronounced, driven by its operational milestones and strategic clarity. HL’s move outpaces sector peers, suggesting its rally is less about macro trends and more about company-specific catalysts.

Options Playbook: High-Leverage Calls and Strategic Puts for Hecla Mining’s Volatile Move
• MACD: 0.98 (bullish divergence from signal line 1.17)
• RSI: 57.23 (neutral but trending upward)
• Bollinger Bands: Price at upper band ($21.40), suggesting overbought conditions
• 200-day MA: $9.59 (far below current price, indicating long-term strength)

Hecla Mining’s technicals suggest a continuation of its bullish momentum, with key support at $18.93 and resistance at $21.84. The stock’s 52-week high aligns with the upper Bollinger Band, signaling potential for a breakout. For traders, the HL20260116C20 and HL20260116P20 options offer strategic leverage.

HL20260116C20 (Call Option):
• Code: HL20260116C20
• Strike: $20
• IV: 69.21% (high volatility)
• Leverage: 10.05%
• Delta: 0.785 (moderate sensitivity)
• Theta: -0.0903 (rapid time decay)
• Gamma: 0.1115 (high sensitivity to price changes)
• Turnover: 179,339 (liquid)
This call option is ideal for capitalizing on a 5% upside scenario (targeting $22.89). A 5% move would yield a payoff of $2.89 per contract, offering a 14.45% return on the strike price.

HL20260116P20 (Put Option):
• Code: HL20260116P20
• Strike: $20
• IV: 88.78% (extreme volatility)
• Leverage: 43.61%
• Delta: -0.259 (moderate bearish exposure)
• Theta: -0.0263 (slow decay)
• Gamma: 0.0964 (moderate sensitivity)
• Turnover: 10,779 (liquid)
This put option provides downside protection if the rally falters, with a 5% downside scenario (targeting $20.79) yielding a $0.79 payoff.

Aggressive bulls should buy HL20260116C20 into a break above $21.84.

Backtest Hecla Mining Stock Performance
The backtest of HL's performance after a 10% intraday surge from 2022 to now shows favorable results. The 3-Day win rate is 52.41%, the 10-Day win rate is 57.23%, and the 30-Day win rate is 63.45%, indicating a higher probability of positive returns in the short term. The maximum return during the backtest was 10.32%, which occurred on day 59, suggesting that HL can deliver significant gains following a 10% intraday surge.

Act Now: Hecla Mining’s Rally Nears Critical Juncture—Here’s Your Playbook
Hecla Mining’s 10.49% intraday surge is a high-conviction trade, driven by earnings outperformance, project approvals, and strategic clarity. The stock’s proximity to its 52-week high and the sector’s mixed momentum suggest a pivotal moment. Investors should monitor the $19.94 intraday low as a critical support level and Newmont’s 4.66% rally as a sector benchmark. For immediate action, the HL20260116C20 call option offers a high-leverage play on a breakout above $21.84. Buy the call if $21.84 holds; sell the put if $19.94 breaks.