Coeur Mining Surges 10.5% on Exploration Breakthrough and Sector Rally

Summary
• Coeur Mining (CDE) surges 10.49% to $17.645, hitting an intraday high of $17.6477
• Exploration update reveals new mineralization at San Miguel and East Palmarejo
• Sector peers like Newmont (NEM) rally as gold prices climb amid Fed rate cut uncertainty

Coeur Mining’s stock erupted in late trading after the company announced a major exploration breakthrough, extending near-mine resources and discovering new high-grade silver zones. The surge aligns with a broader gold sector rally driven by dovish Fed signals and geopolitical tensions. With gold prices near $4,277/oz, miners are capitalizing on renewed safe-haven demand and central bank buying.

Exploration Breakthrough Ignites Investor Optimism
Coeur Mining’s 10.49% surge stems from its December 8 exploration update, which detailed multi-kilo silver grades at San Miguel and new mineralization at East Palmarejo. The company reported 2.3-year payback metrics at $2,300/oz gold in its base case, while upside scenarios project 1.4-year payback at $3,900/oz. These figures, combined with record production from peers like GoGold Resources and Heliostar Metals, fueled speculative buying. The move also reflects broader sector momentum, as gold prices climbed 1.22% on Fed rate cut expectations and central bank demand.

Gold Sector Rally Led by Newmont as Coeur Surges on Exploration News
The gold sector surged alongside Coeur Mining, with Newmont (NEM) leading the charge with a 5.52% intraday gain. Pan American Silver (PAAS) and Hecla Mining (HL) also posted double-digit gains, reflecting renewed investor confidence in precious metals. Coeur’s exploration-driven rally contrasts with peers like Fortuna Silver (FVI), which rose 4.77% on operational updates but lagged behind Coeur’s momentum. The sector’s strength is underpinned by gold’s 59.55% annual gain and central bank buying, particularly from China.

Options Playbook: Leveraging Coeur’s Volatility with Gamma-Driven Calls
• 200-day MA: $11.18 (well below current price)
• RSI: 59.0 (neutral to bullish)
• MACD: -0.11 (bullish histogram divergence)
• Bollinger Bands: Price at $17.65 (above upper band of $17.38)

Coeur’s technicals suggest a continuation of its breakout, with key resistance at $17.50 and support at $16.02. The stock’s 10.49% move has created a short-term overbought condition, but strong gamma and theta in call options indicate sustained volatility. Two top options for aggressive bulls:

• CDE20251219C17.5 (Call, $17.5 strike, 12/19 expiry):
- IV: 71.65% (high volatility)
- Delta: 0.565 (moderate directional sensitivity)
- Theta: -0.085 (rapid time decay)
- Gamma: 0.198 (high sensitivity to price moves)
- Turnover: 138,857 (liquid)
- Leverage: 19.66% (amplifies gains)
- Payoff at 5% upside ($18.53): $1.03/share
- Ideal for capitalizing on a short-term rally above $17.50.

• CDE20251219C18 (Call, $18 strike, 12/19 expiry):
- IV: 74.81% (high volatility)
- Delta: 0.469 (moderate directional sensitivity)
- Theta: -0.081 (rapid time decay)
- Gamma: 0.191 (high sensitivity to price moves)
- Turnover: 10,178 (liquid)
- Leverage: 25.28% (amplifies gains)
- Payoff at 5% upside ($18.53): $0.53/share
- Offers higher leverage for a potential $18.50 breakout.

Aggressive bulls should target CDE20251219C17.5 into a close above $17.50, while CDE20251219C18 provides amplified exposure for a $18.50 move. Both contracts benefit from high gamma and theta, making them ideal for a short-term breakout trade.

Backtest Coeur Mining Stock Performance
The backtest of CDE's performance following a 10% intraday surge from 2022 to the present indicates favorable short-to-medium-term gains, with the 3-Day win rate at 53.28%, the 10-Day win rate at 55.53%, and the 30-Day win rate at 56.76%. These rates suggest that CDE tends to experience positive returns in the immediate aftermath of such events, with the maximum return during the backtest period being 12.02% over 30 days.

Coeur Mining’s Breakout: A Gamma-Driven Bull Case
Coeur Mining’s 10.49% surge is a gamma-driven rally fueled by exploration success and sector momentum. The stock’s technicals and options activity suggest a continuation of the move, with key resistance at $17.50 and $18.50. Investors should monitor Newmont’s 5.52% gain as a sector barometer. For aggressive traders, CDE20251219C17.5 and CDE20251219C18 offer leveraged exposure to a potential $18.50 breakout. Watch for a close above $17.50 to confirm the bullish case.