Ramaco Resources (METC) Surges 9.4% on $100M Buyback and Rare Earths MOU – Is This the Catalyst for a New Bull Run?

Summary
• Ramaco Resources (METC) announces a $100 million stock repurchase program and expands credit facilities
• Rare earths memorandum of understanding with Mulberry Industries sparks sector speculation
• Intraday price surges 9.4% to $22.3, hitting a 52-week high of $57.8

Ramaco Resources (METC) has ignited a frenzy in the critical minerals sector, surging 9.4% in a single trading session. The stock’s meteoric rise follows a $100 million buyback plan, a $182 million fund investment, and a strategic rare earths MOU with Mulberry Industries. With a 52-week range of $6.3 to $57.8 and a dynamic PE of -30.05, the stock’s volatility underscores its speculative allure in the energy transition narrative.

Strategic Buybacks and Rare Earths MOU Fuel Short-Term Optimism
Ramaco’s 9.4% intraday surge stems from three catalysts: a $100 million stock repurchase program, a $182 million fund investment by Discovery Capital, and a non-binding MOU with Mulberry Industries to strengthen domestic rare earth supply chains. These moves signal institutional confidence in METC’s long-term value proposition, particularly in the context of U.S. policy-driven demand for critical minerals. The buyback program alone represents a 4.9% stake in the company’s market cap, while the rare earths partnership aligns with broader geopolitical efforts to reduce reliance on foreign supply chains.

Metals & Mining Sector Gains Momentum as METC Outperforms
The Metals & Mining sector advanced 5.4% on the day, led by Hycroft Mining (+23%) and Harmony Gold (+9.5%). Ramaco Resources outperformed its peers, surging 9.57% compared to sector leader MP Materials (MP) which rose 7.03%. The sector’s strength reflects renewed investor appetite for commodities tied to energy transition and industrial recovery, with METC’s rare earths focus positioning it as a dual-play between traditional mining and tech-driven demand.

High-Leverage Call Options and ETF Positioning for a Volatile Bull Run
• 200-day average: 19.59 (below current price) • RSI: 86.18 (overbought) • MACD: 0.29 (bullish divergence) • Bollinger Bands: Price at 22.3 vs. upper band 21.63 (oversold rebound)
Ramaco Resources is trading at a 100-day high of 22.3, with technical indicators suggesting a continuation of the short-term bullish trend. The RSI at 86.18 signals overbought conditions, but the MACD histogram (0.72) and long-term ranging pattern suggest momentum remains intact. Key resistance lies at the 52-week high of $57.8, while the 200-day MA at $19.59 provides a critical support level.
Top Options Picks:
• METC20260116C21 (Call, $21 strike, 1/16/2026):
- IV: 115.08% (high volatility) • Leverage: 10.63% • Delta: 0.70 • Theta: -0.19 • Gamma: 0.115 • Turnover: 61,648
- Payoff: At 5% upside (23.41), max payoff = $2.41/share. This contract offers a balance of leverage and liquidity, ideal for capitalizing on a continuation of the current rally.
• METC20260116C22 (Call, $22 strike, 1/16/2026):
- IV: 113.38% • Leverage: 16.54% • Delta: 0.57 • Theta: -0.19 • Gamma: 0.132 • Turnover: 39,198
- Payoff: At 5% upside, max payoff = $1.41/share. This option’s moderate delta and high gamma make it responsive to price swings, while the 16.54% leverage amplifies returns in a bullish scenario.
Action: Aggressive bulls may consider METC20260116C21 into a breakout above $22.69 (intraday high). For a more conservative approach, METC20260116C22 offers a safer entry with strong gamma to benefit from volatility.

Backtest Ramaco Resources A Stock Performance
The backtest for METC's performance after a 9% intraday surge from 2022 to now is not available. However, similar backtests for other instruments have been conducted by AInvest, and it is mentioned that lowering the surge threshold could capture more events. This suggests that METC may not have met the criteria for a valid event set during this period. 1. Backtest Challenges: Backtesting performance requires specific conditions to be met, such as a minimum number of qualified dates for analysis. If no trading sessions met the 9% intraday surge condition, the backtest could not have generated valid results.2. Alternative Approach: To evaluate METC's performance, it might be beneficial to explore other metrics or strategies that could provide insights into its behavior. This could include analyzing historical price trends, trading volumes, or correlating METC's performance with broader market indices.In conclusion, due to the lack of available data meeting the requisite 9% intraday surge condition, a backtest for METC's performance after 2022 cannot be conducted based on the provided information.

Ramaco Resources (METC) Poised for Volatility – Watch for $57.8 Breakout or Sector Rotation
Ramaco Resources’ 9.4% surge is driven by a mix of corporate actions and strategic positioning in the rare earths sector. While technical indicators suggest a continuation of the bullish trend, the stock’s -30.05 dynamic PE and 52-week range of $6.3–$57.8 highlight its speculative nature. Investors should monitor the $57.8 level as a key inflection point for long-term momentum. In the near term, the sector leader MP Materials (MP) rising 7.03% offers a benchmark for sector strength. Watch for a breakout above $22.69 or a breakdown below $20.6 to confirm the next directional move.