BHP Group Surges 2.88% on Bullish Metals Sector Momentum and Strategic Options Activity

Summary
• BHP Group (BHP) surges 2.88% to $65.83, hitting its 52-week high of $65.975
• VanEck Natural Resources ETF (HAP) gains 1.99%, aligning with BHP’s rally
• Options chain shows heightened activity in February 2026 calls, with 75,727 contracts traded for the $65 strike

BHP Group’s intraday surge reflects a confluence of sector-wide optimism and strategic positioning in derivatives. The stock’s 2.88% gain, driven by a $1.84 move from its $64.71 open, coincides with a broader metals rally fueled by record silver prices and aggressive mining sector financing. With the VanEck Natural Resources ETF (HAP) up 1.99%, the rally underscores a coordinated bullish narrative across commodities and equities.

Silver's Record High and Mining Sector Optimism Drive BHP's Rally
BHP’s rally is inextricably linked to the meteoric rise in silver prices, which hit $91.35/oz—a 5.81% gain—amid surging industrial demand and geopolitical supply concerns. The broader mining sector amplified this momentum, with companies like Hecla Mining and Endeavour Silver surging over 2.5%. BHP, as a diversified metals giant, benefits from both base and precious metal strength. Additionally, the company’s 18.52 P/E ratio, below its 52-week high of 65.975, suggests undervaluation relative to peers, attracting capital inflows. The VanEck Natural Resources ETF’s 1.99% gain further validates sector-wide enthusiasm.

Metals and Mining Sector Rally Led by Silver's Momentum, with BHP Outperforming Peers
The Metals and Mining sector, led by Freeport-McMoRan (FCX) up 1.79%, saw broad-based gains as silver’s record high spurred demand for industrial and precious metals. BHP’s 2.88% surge outperformed FCX and other miners, reflecting its diversified exposure to copper, iron ore, and energy transition metals. ETFs like HAP (1.99%) and VanEck Steel ETF (SLX, 1.42%) mirrored the sector’s strength, while leveraged plays like ProShares Ultra Silver ETF (AGQ, 12.7%) highlighted speculative fervor. BHP’s rally, however, is underpinned by its scale and global operations, distinguishing it from smaller, silver-focused peers.

Strategic Options and ETFs for Capitalizing on BHP's Bullish Momentum
• MACD: 1.475 (above signal line 1.440), RSI: 61.58 (neutral), Bollinger Bands: $64.96 (upper), $61.34 (middle), $57.72 (lower)
• 200-day MA: $53.12 (well below current price), 30-day MA: $60.41 (below price), Support/Resistance: $60.76–$60.95 (30D), $55.46–$55.95 (200D)

BHP’s technicals suggest a continuation of its bullish trend, with the 200-day MA acting as a strong floor. The RSI at 61.58 indicates no overbought conditions, while the MACD histogram’s positive divergence (0.035) signals momentum. For options, the BHP20260220C65 call and BHP20260220C62.5 call stand out. The BHP20260220C65 has a 50.73% price change ratio, 21.28% leverage, and 31.79% implied volatility, with a theta of -0.0394 and gamma of 0.0581, making it sensitive to price moves. The BHP20260220C62.5 offers a 38.24% price change ratio, 13.99% leverage, and 33.32% IV, with a theta of -0.0369 and gamma of 0.0487. Both contracts have high turnover (75,727 and 35,960), ensuring liquidity. Assuming a 5% upside to $69.12, the BHP20260220C65 payoff would be $4.12 per contract, while the BHP20260220C62.5 would yield $6.62. Aggressive bulls should prioritize the BHP20260220C65 for its high leverage and moderate delta (0.567), while the BHP20260220C62.5 (delta 0.701) offers a safer, higher-probability play. ETFs like the VanEck Natural Resources ETF (HAP) and VanEck Steel ETF (SLX) provide broad exposure to the sector’s momentum.

Backtest BHP Group Stock Performance
The backtest of BHP's performance following a 3% intraday surge from 2022 to the present shows a strategy return of 9.80%, with a benchmark return of 43.58% and an excess return of -33.78%. The strategy's CAGR is 2.41%, indicating moderate growth, while the Sharpe ratio is 0.08, suggesting low risk-adjusted returns. The maximum drawdown was 42.73%, and the volatility was 31.70%, indicating significant risk and fluctuations in the strategy.

BHP's Bullish Momentum Suggests Aggressive Positioning for Near-Term Gains
BHP’s rally is underpinned by a perfect storm of sector strength, speculative options activity, and undervaluation relative to its 52-week high. The stock’s proximity to its 200-day MA ($53.12) and the broader metals rally suggest the move is sustainable, particularly if silver remains above $90/oz. Investors should monitor the $64.96 upper Bollinger Band as a near-term resistance level and the 200-day MA as a critical support. With Freeport-McMoRan (FCX) up 1.79%, the sector’s momentum remains intact. Aggressive traders may consider the BHP20260220C65 call for leveraged exposure, while ETFs like HAP and SLX offer diversified sector bets. If BHP breaks above $65.975, the 52-week high, it could signal a new bull phase for the metals complex.