Wheaton Precious Soars 4.08% on Gold-Silver Surge and Streaming Model Momentum

Summary
• Wheaton Precious Metals (WPM) surges 4.08% to $120.16, hitting 52-week high of $120.55
• Gold and silver prices surge 65% and 132% YTD, driving WPM’s 109% annual return
• Company’s streaming model outperforms peers, with $476M Q3 revenue and $367M net earnings
• Options chain shows 110.68% price change ratio on $120 call, signaling bullish momentum

Wheaton Precious Metals is riding a historic wave of precious metals demand, with gold and silver prices surging to multi-decade highs. The stock’s 4.08% intraday gain reflects its role as a proxy for the metals it streams, while its 109% annual return underscores its outperformance against the S&P 500’s 15% gain. With the options market pricing in aggressive upside potential and technical indicators confirming a bullish trend, WPM is at a pivotal moment for investors.

Gold-Silver Price Surge Fuels Wheaton’s Streaming Model
Wheaton Precious’s 4.08% intraday gain is directly tied to the 65% year-to-date surge in gold prices and the 132% rally in silver. The company’s streaming model—where it acquires byproduct metals from mines at low cost—benefits disproportionately from rising metal prices. Q3 2025 results highlighted this dynamic: revenue jumped 54% to $476 million, and net earnings hit a record $367.2 million, driven by 15.3% higher gold and 32.2% higher silver production. With $1.2 billion in cash and $326.7 million in liabilities, Wheaton’s balance sheet amplifies its exposure to the metals it streams, making it a leveraged play on the gold-silver rally.

Gold Sector Leaders Outperform as Precious Metals Rally Gains Momentum
The gold sector is experiencing a renaissance, with Newmont (NEM) surging 2.76% and the VanEck Gold Miners ETF (GDX) up 2.95%. Wheaton’s 4.08% gain outpaces both, reflecting its unique streaming model. Unlike traditional miners, Wheaton avoids production costs while capturing price gains through its contracts. This structural advantage is evident in its 109% annual return versus Newmont’s 145% and the S&P 500’s 15%. As central banks continue buying gold and industrial demand for silver accelerates, Wheaton’s model is positioned to outperform peers.

Bullish Setup: ETFs and Options for a Gold-Silver Rally Extension
• MACD: 3.40 (above signal line 2.84), RSI: 61.32 (neutral), Bollinger Bands: $120.54 (upper), $109.30 (middle), $98.07 (lower)
• 200-day MA: $93.48 (well below price), 30-day MA: $107.16 (below price), confirming long-term bullish trend

Wheaton Precious is in a short- and long-term bullish trend, with technical indicators pointing to continued upside. The U.S. Global GO Gold and Precious Metal Miners ETF (GOAU) and VanEck Gold Miners ETF (GDX) offer diversified exposure to the sector. For leveraged bets, the Amplify Junior Silver Miners ETF (SILJ) is up 4.12% and aligns with silver’s industrial demand surge.

Top Options Picks:
• WPM20251226C120 (Call, $120 strike, 12/26 expiration):
- IV: 28.15% (moderate), Leverage: 55.41%, Delta: 0.535, Theta: -0.3989, Gamma: 0.0793, Turnover: 13,112
- IV reflects market optimism; high leverage and gamma suggest strong response to price moves. Projected 5% upside (to $126.16) yields a $6.16 payoff per contract.
• WPM20251226C122 (Call, $122 strike, 12/26 expiration):
- IV: 29.76% (moderate), Leverage: 85.89%, Delta: 0.386, Theta: -0.3255, Gamma: 0.0722, Turnover: 8,735
- High leverage and moderate delta balance risk/reward. 5% upside (to $126.16) generates a $4.16 payoff per contract.

Aggressive bulls should consider WPM20251226C120 into a test of the $120.54 Bollinger upper band. If $115 support holds, WPM20251226C122 offers leveraged exposure to a potential breakout.

Backtest Wheaton Precious Stock Performance
The backtest of WPM's performance after an intraday surge of at least 4% from 2022 to the present shows favorable results. The 3-day win rate is 54.88%, the 10-day win rate is 57.23%, and the 30-day win rate is 62.50%, indicating a higher probability of positive returns in the short term. The maximum return during the backtest was 6.50% over 30 days, suggesting that WPM can deliver decent gains even after the initial surge.

Position for a Gold-Silver Rally Extension: Act Before Year-End Rebalancing
Wheaton Precious’s 4.08% surge reflects its role as a leveraged play on gold and silver’s historic rally. With technical indicators confirming a bullish trend and options pricing in aggressive upside, the stock is well-positioned to extend its outperformance. The sector leader, Newmont (NEM), is up 2.76%, but Wheaton’s streaming model offers a more direct exposure to metal prices. Investors should monitor the $115 support level and consider GOAU or GDX for diversified exposure. If $115 holds, WPM20251226C120 and WPM20251226C122 offer high-leverage options to capitalize on a potential year-end rebound.