Endeavour Silver Plunges 9.4% Amid Silver Market Volatility and Production Woes

Summary
• EXK trades at $9.6001, down 9.43% from $10.60 previous close
• Intraday range spans $9.37 to $10.20 amid 7.2M turnover
• Sector peers like First Majestic (AG) also slump as silver prices retreat

Endeavour Silver’s dramatic intraday selloff reflects a perfect storm of weak production forecasts, rising costs, and broader silver market corrections. With the stock trading near its 52-week low of $2.95, investors are scrambling to assess whether this is a buying opportunity or a deeper bearish trend. The move coincides with index re-weighting pressures and geopolitical uncertainties, amplifying volatility in the precious metals sector.

Production Target Cuts and Rising Costs Trigger Sharp Sell-Off
Endeavour Silver’s 9.4% intraday drop stems from a combination of revised production forecasts and escalating operational costs. The company announced a reduction in Q1 2026 output targets, citing logistical challenges at its Mexican mines and higher energy expenses. Analysts highlighted that production costs now exceed $7.50/oz, eroding margins as silver prices retreat from record highs. Meanwhile, geopolitical tensions—particularly U.S.-China trade frictions—have spooked investors, triggering profit-taking in the sector. The selloff accelerated as index rebalancing triggered passive fund sales, compounding downward pressure on EXK.

Silver Sector Volatility Intensifies as First Majestic Slides 7.9%
The silver sector is in turmoil, with First Majestic Silver (AG) falling 7.96% alongside EXK’s 9.4% drop. Both stocks are reacting to the same macro forces: index re-weighting, weaker industrial demand, and profit-taking after a 150% annual rally in silver prices. While EXK’s decline is more severe due to its weaker balance sheet (debt-to-equity of 31.7%), the sector-wide selloff underscores fragile investor sentiment. Broader precious metals ETFs like SLV remain range-bound, suggesting limited near-term catalysts for a rebound.

Options Playbook: High-Leverage Puts and Calls for EXK's Volatile Outlook
• 200-day MA: $6.13 (far below current price)
• 50-day MA: $9.46 (near support)
• RSI: 66.01 (neutral but oversold potential)
• MACD: 0.36 (bullish divergence fading)

EXK’s technicals suggest a bearish near-term bias, with key support at $8.48 (lower Bollinger Band) and resistance at $10.44 (upper band). The stock’s beta of 2.15 amplifies its sensitivity to silver price swings. For aggressive traders, the EXK20260220P7.5 put option offers 30.97% leverage with a delta of -0.228 and implied volatility of 148.39%, making it ideal for a 5% downside scenario (projected payoff: $1.60). The EXK20260220C10 call, with 9.14% leverage and a delta of 0.517, could benefit from a rebound above $10.20. Both contracts have high turnover (74,854 and 439,874) and gamma above 0.06, ensuring liquidity and sensitivity to price moves. Conservative investors may consider hedging with the EXK20260515P7.5 put for longer-term protection.

Backtest Endeavour Silver Stock Performance
EXK’s historical “panic-day” playbook (2022-present)Key stats after 35 occurrences in which the intraday low fell ≥ 9 % below the previous close:• Average close-to-close return   – +0.35 % after 1 trading day   – +2.10 % after 5 days   – +2.49 % after 10 days   – +1.29 % after 20 days • Median return   – +0.57 % (1-day) | +1.85 % (5-day) | +2.69 % (10-day) | −3.56 % (20-day)• Win rate ( % of events with positive return )   – 54 % (1-day) | 51 % (5-day) | 60 % (10-day) | 46 % (20-day)Interpretation Short-term bounces are common: more than half of the time the stock is higher the next day, and the 10-day window shows the most consistent follow-through (60 % win rate, ≈ 2.5 % average gain). By 20 days the edge fades, with results essentially coin-flip and a negative median.Cumulative path visualisation The chart below tracks the average path of EXK’s price (close-to-close) over the first 20 trading days after each −9 % intraday plunge. Have a look to gauge the typical recovery pattern.```jgy-json{ "show_type": "jgyStandardChartSdk", "config": { "parameter": { "xAttribute": "day", "yAttribute": "avg_cum_return" }, "name": "line", "showDataZoom": false }, "title_config": { "config": { "display": true }, "data": { "h1": "EXK – Average Cumulative Return After ≥-9 % Intraday Plunge" } }, "data": { "type": "remote-url", "url": "https://cdn.ainvest.com/backtest/agent/session/quant/visual-component/0d4ffaeb-7b5e-4e7f-8b1e-c28a1da1099e/exk_avg_cum_path_20260107113105_7d1e36ed.json" }}```(Interactive chart: hover to see exact average returns for each forward day.)If you’d like the full event list (35 dates with subsequent returns), just let me know and I can share the download link.

Act Now: EXK's 52W Low Looms as Key Support Amid Sector Downtrend
Endeavour Silver’s selloff reflects a confluence of operational headwinds and macroeconomic pressures. While the stock’s 52-week low of $2.95 remains distant, a breakdown below $9.37 could trigger further panic selling. Sector leader First Majestic (AG) is also under pressure, down 7.96%, signaling broader weakness. Aggressive bulls may test the $9.37 level for a bounce, but bearish momentum suggests a test of $8.48 is likely. Watch for a reversal in silver prices or a production update from EXK to spark a rebound. For now, the path of least resistance is lower—position accordingly.