Hycroft Mining (HYMC) Surges 7.5% on Record Silver Prices and Insider Buying: Is This the Start of a Bull Run?

Summary
• Hycroft Mining (HYMC) surges 7.48% to $14.22, hitting a 52-week high of $15.49
• Eric Sprott, a 30.19M-shareholder, spent $4.62M to boost his stake in December
• Silver prices hit $66.65/oz, up 127% YTD, driving demand for miners like HYMC
• Analysts remain divided, with Weiss Ratings retaining a 'Sell' but institutional buying intensifying

Hycroft Mining’s stock has erupted on December 17, 2025, fueled by a perfect storm of insider buying, record silver prices, and bullish technicals. The stock’s 7.48% intraday gain—its highest since the 2023 market collapse—has drawn attention to Eric Sprott’s $4.62 million in purchases and the broader silver sector’s momentum. With the metal trading near all-time highs and HYMC’s 52-week range of $1.99–$15.49 now fully breached, the question is whether this is a short-lived spike or the start of a sustained rally.

Eric Sprott's Aggressive Buying and Silver's Record High Drive HYMC's Rally
HYMC’s explosive move stems from two interlinked catalysts: Eric Sprott’s aggressive accumulation and the silver market’s historic surge. Sprott, a 10% owner, added 360,000 shares at $12.36–$13.30, raising his stake to 30.19 million shares. This signals conviction in HYMC’s long-term potential amid its 551.5% YTD rally. Simultaneously, silver prices hit $66.65/oz, up 127% year-to-date, driven by industrial demand for solar panels and EVs, tightening inventories, and expectations of Fed rate cuts. HYMC’s Vortex zone drill results—showing record grades—further validate its role as a key player in the silver boom.

Silver Sector Soars as PAAS Leads Charge on Industrial Demand and Rate Cut Hopes
The silver sector is in a synchronized rally, with Pan American Silver (PAAS) up 1.19% and HYMC surging 7.48%. PAAS’s 1.19% gain reflects its role as a bellwether for industrial demand, while HYMC’s sharper move is fueled by Sprott’s buying and its Nevada-based Vortex project’s high-grade potential. The sector’s outperformance is underpinned by silver’s dual role as a monetary metal and a critical input for green energy technologies. With the Fed signaling rate cuts and global central banks buying record amounts of gold, the sector’s momentum appears durable.

Bullish Technicals and High-Leverage Options Signal Aggressive Play in HYMC
• 200-day MA: $5.19 (well below current price)
• RSI: 76.77 (overbought)
• MACD: 1.106 (bullish divergence)
• Bollinger Bands: Price at 13.64 (upper band), 11.38 (middle), 9.11 (lower)
• K-line pattern: Short-term bullish trend confirmed

HYMC’s technicals scream aggressive bullishness. The stock has pierced its 52-week high of $15.49 and is trading above all major moving averages. RSI at 76.77 suggests overbought conditions, but the MACD’s 1.106 and positive histogram indicate momentum is intact. For options traders, the HYMC20260116C15 and HYMC20260220C13 contracts stand out. Both offer high leverage (11.22% and 4.71%) and moderate deltas (0.477 and 0.665), balancing directional exposure with time decay (theta of -0.033 and -0.021).

• HYMC20260116C15 (Call, $15 strike, Jan 16 expiry):
- IV: 97.07% (high volatility)
- Delta: 0.477 (moderate sensitivity)
- Theta: -0.033 (moderate time decay)
- Gamma: 0.0996 (high sensitivity to price moves)
- Turnover: 17,977 (liquid)
- Payoff at 5% upside (14.93): $0.93/share
- Ideal for capitalizing on a continuation of the rally with limited time decay.

• HYMC20260220C13 (Call, $13 strike, Feb 20 expiry):
- IV: 102.65% (high volatility)
- Delta: 0.665 (high sensitivity)
- Theta: -0.021 (moderate time decay)
- Gamma: 0.0590 (moderate sensitivity)
- Turnover: 23,782 (liquid)
- Payoff at 5% upside (14.93): $1.93/share
- Offers higher leverage and a lower strike price for a more aggressive play.

Aggressive bulls should consider HYMC20260116C15 for a short-term pop or HYMC20260220C13 for a longer, leveraged bet. Both contracts align with the stock’s breakout pattern and sector momentum.

Backtest Hycroft Mining Stock Performance
The backtest of HYMC's performance after a 7% intraday increase from 2022 to now shows favorable results. The 3-Day win rate is 48.33%, the 10-Day win rate is 46.33%, and the 30-Day win rate is 52.34%, indicating a higher probability of positive returns in the short term. The maximum return during the backtest was 13.00% over 30 days, suggesting that HYMC can deliver significant gains even after the initial 7% surge.

HYMC's Momentum Unlikely to Slow: Position for a Silver Sector Breakout
HYMC’s 7.48% surge is not a fluke but a continuation of a multi-year bull case driven by Sprott’s buying, record silver prices, and the Vortex project’s potential. While the RSI suggests overbought conditions, the MACD and Bollinger Bands confirm a strong trend. With the stock trading near its 52-week high and the silver sector surging, the path of least resistance is higher. Watch Pan American Silver (PAAS, +1.19%) as a sector barometer and key levels at $13.64 (Bollinger upper band) and $15.49 (52-week high). For traders, the HYMC20260116C15 and HYMC20260220C13 options offer high-leverage plays on a breakout. If $15.49 holds, HYMC could test $17–$18 by early 2026.