Taseko Mines Surges 12.88% on Unprecedented Options Activity and Copper Market Rally – What’s Fueling the Frenzy?

Summary
• Taseko Mines (TGB) surges 12.88% to $7.36, hitting its 52-week high of $7.375
• Unusual options volume spikes 219% as traders bet on continued momentum
• Copper prices hit $13,310/t, driving sector-wide optimism and capital rotation into polymetallic giants

Today’s explosive move in Taseko Mines reflects a perfect storm of copper market fundamentals, institutional inflows, and speculative options activity. With the stock trading near its 52-week high and turnover surging to 3.46% of float, the question is no longer if the rally will continue—but how far it can go.

Options Volatility and Copper Market Dynamics Drive Taseko’s Record Move
Taseko’s 12.88% intraday surge is fueled by a confluence of factors: 1) Unprecedented options activity, with 8,595 call options traded (219% above average), signaling aggressive bullish positioning; 2) Copper’s record $13,310/t price, driven by supply disruptions at Codelco’s El Teniente mine and geopolitical tensions; and 3) Institutional inflows, including a 24% stake increase by CANADA LIFE ASSURANCE Co. The completion of Taseko’s Florence Copper project in Arizona, now transitioning to production, further cements its role as a key player in the global copper supply chain.

Copper Sector Rally Gains Momentum as Freeport-McMoRan Gains 2.06%
The broader copper sector is surging, with Freeport-McMoRan (FCX) up 2.06% as of 20:26 ET. Taseko’s 12.88% move outpaces FCX’s rally, reflecting its smaller-cap, high-growth profile. While FCX benefits from stable production and lower leverage, Taseko’s aggressive expansion into in-situ recovery technology and its recent Florence project completion position it as a speculative play on copper’s long-term demand. The sector’s 150,000-ton 2026 deficit, as highlighted by ICSG, underscores the tailwinds for both names.

High-Leverage Call Options and ETFs Emerge as Strategic Plays Amid Bullish Momentum
• RSI: 74.63 (overbought)
• MACD: 0.317 (bullish divergence)
• 200D MA: $3.58 (far below current price)
• Bollinger Bands: $6.46 (upper) vs. $7.36 (current price)

Taseko’s technicals scream short-term continuation. The RSI at 74.63 suggests overbought conditions, but the MACD’s 0.317 and bullish histogram confirm momentum. With the 200D MA at $3.58 and Bollinger Bands stretched, the stock is primed for a test of its 52-week high. While no leveraged ETFs are available, options offer amplified exposure.

Top Options Picks:
• TGB20260220C8
- Strike: $8.00
- Expiration: 2026-02-20
- IV: 64.57% (moderate)
- Leverage: 18.54% (high)
- Delta: 0.405 (moderate sensitivity)
- Theta: -0.0107 (rapid time decay)
- Gamma: 0.2510 (high sensitivity to price swings)
- Turnover: $18,032
- Payoff (5% upside): $1.64/share
- Why: High leverage and gamma make this ideal for a 5% move, with theta decay manageable given the 20-day horizon.

• TGB20260220C7
- Strike: $7.00
- Expiration: 2026-02-20
- IV: 65.08% (moderate)
- Leverage: 8.72% (high)
- Delta: 0.655 (strong directional bias)
- Theta: -0.0119 (rapid decay)
- Gamma: 0.2365 (high sensitivity)
- Turnover: $27,470
- Payoff (5% upside): $0.68/share
- Why: Lower strike price offers better odds of in-the-money, with high gamma amplifying gains if the move accelerates.

Action: Aggressive bulls should prioritize TGB20260220C8 for maximum leverage, while TGB20260220C7 offers a safer, directional bet. Both require tight stop-losses given the overbought RSI and theta decay.

Backtest Taseko Mines Stock Performance
The backtest of TGB's performance after a 13% intraday increase from 2022 to now shows favorable results. The 3-Day win rate is 52.27%, the 10-Day win rate is 53.78%, and the 30-Day win rate is 60.04%, indicating a higher probability of positive returns in the short term. The maximum return during the backtest was 8.96%, which occurred on day 59, suggesting that TGB can deliver decent gains even after the initial surge.

Taseko Mines at Critical Juncture – Immediate Action Required as Copper Volatility Peaks
Taseko’s 12.88% surge is a high-stakes inflection point. While the stock’s technicals and copper fundamentals support continuation, the overbought RSI and rapid theta decay on options contracts demand caution. Investors should monitor the $7.375 52-week high and $6.585 intraday low as key levels. With Freeport-McMoRan (FCX) up 2.06%, the copper sector’s momentum remains intact. For Taseko, the next 20 days will test its ability to sustain this rally—or correct into a more sustainable uptrend. Aggressive traders should lock in profits above $7.30, while long-term bulls can re-enter on dips to $6.80.