McEwen Soars 20% on Bullish Momentum as Options Chain Ignites Volatility

Summary
• McEwen Mining (MUX) surges 20.17% to $13.88, hitting 52-week high of $13.945
• Intraday range spans $12.51 to $13.95, with turnover of 5.28M shares (11.66% of float)
• Options chain sees explosive volume in September 19th $13–$15 strikes, with leverage ratios exceeding 50%
• Sector leader Newmont (NEM) lags with 1.77% gain, highlighting MUX’s outperformance

McEwen Mining’s stock has erupted on Tuesday, fueled by a combination of technical momentum and speculative options activity. The $13.88 price tag marks a 20.17% intraday surge, driven by heavy volume and a bullish breakout above key resistance levels. With the gold sector showing muted gains, MUX’s performance suggests a mix of sector rotation and short-term speculative fervor.

Technical Breakout and Options Volatility Fuel MUX’s Surge
MUX’s 20.17% rally stems from a confluence of technical triggers and options-driven liquidity. The stock pierced its 52-week high of $13.945, breaking above the 30-day moving average ($10.75) and Bollinger Band upper bound ($11.41). The MACD histogram (0.087) and RSI (65.2) confirm bullish momentum, while the 11.66% turnover rate indicates aggressive position-building. Options data reveals explosive activity in the September 19th $13–$15 calls, with the MUX20250919C15 contract seeing 859 contracts traded and a 400% price change ratio. This suggests institutional and retail traders are betting on a continuation of the upward trend.

Gold Sector Lags as MUX Outperforms
The gold sector remains subdued, with sector leader Newmont (NEM) up just 1.77% on the day. MUX’s 20% surge far outpaces the sector’s muted response, indicating a shift toward smaller-cap gold plays or speculative positioning. While gold prices have stabilized, MUX’s technical setup—breaking above its 200-day average ($8.65) and Bollinger Bands—has created a divergence from broader sector trends. This suggests MUX’s move is driven by stock-specific factors rather than macro gold demand.

High-Leverage Calls and Gamma-Driven Plays for MUX’s Volatility
• Technical Indicators:
- 200-day average: $8.65 (well below current price)
- RSI: 65.2 (bullish momentum)
- MACD: 0.174 (positive divergence)
- Bollinger Bands: $13.95 (upper) vs. $12.51 (intraday low)

Trading Setup: MUX has broken above its 52-week high and key moving averages, with RSI and MACD confirming bullish momentum. The 11.66% turnover rate suggests strong short-term positioning. For leveraged exposure, the MUX20250919C15 and MUX20251017C14 options stand out due to high leverage ratios and favorable Greeks.

Top Options:
• MUX20250919C15 (Call, $15 strike, 9/19 expiry):
- IV: 50.76% (moderate)
- Leverage: 55.61% (high)
- Delta: 0.274 (moderate sensitivity)
- Theta: -0.0229 (moderate time decay)
- Gamma: 0.2127 (high sensitivity to price moves)
- Turnover: 22,588 (liquid)
- Why: High leverage and gamma make this ideal for a continuation of the bullish trend. A 5% upside to $14.57 would yield a payoff of $0.57 per contract.

• MUX20251017C14 (Call, $14 strike, 10/17 expiry):
- IV: 51.92% (moderate)
- Leverage: 13.76% (moderate)
- Delta: 0.533 (high sensitivity)
- Theta: -0.0169 (moderate decay)
- Gamma: 0.1551 (high sensitivity)
- Turnover: 308,179 (extremely liquid)
- Why: High liquidity and moderate leverage make this a safer play for a mid-term rally. A 5% upside would yield a $0.77 payoff.

Action: Aggressive bulls may consider MUX20250919C15 into a test of $14.00, while more conservative traders can target MUX20251017C14 for a controlled rally above $13.95.

Backtest McEwen Stock Performance

Breakout Confirmed: MUX’s 52-Week High is a Catalyst for Short-Term Gains
MUX’s 20.17% surge has confirmed a bullish breakout above its 52-week high and key technical levels. The options chain’s explosive activity—particularly in the September 19th $15 call—signals strong conviction in a continuation of the rally. While the gold sector remains cautious, MUX’s technical setup suggests a short-term target near $14.00. Investors should monitor the 52-week high as a critical level and watch for follow-through volume. With Newmont (NEM) up 1.77%, a broader sector rotation could amplify MUX’s gains. Act now: Buy MUX20250919C15 for a high-leverage play or MUX20251017C14 for a safer, mid-term position.