SCHW Surges 2.5% to 52-Week High: What's Fueling the Momentum?

Summary
• The Charles Schwab (SCHW) surges 2.54% to $101.335, hitting its 52-week high of $101.475
• Intraday range spans $99.05 to $101.475, with turnover at 5.35 million shares
• Zacks highlights SCHW’s Momentum Score of A and 9.2% 4-week rally

The Charles Schwab Corporation (SCHW) is trading at its strongest level in over a year, driven by a confluence of technical strength and bullish momentum indicators. With the stock breaching key resistance and options activity surging, investors are scrambling to decipher whether this rally is a breakout or a short-lived spike. The 2.54% intraday gain, coupled with a 9.2% surge in the past four weeks, signals a potential inflection point for the brokerage giant.

Momentum and Earnings Revisions Drive SCHW Higher
The Charles Schwab’s 2.54% intraday surge is underpinned by a combination of technical strength and improving fundamentals. Zacks’ analysis highlights a Momentum Style Score of A, with shares up 9.2% over four weeks. Seven analysts revised fiscal 2025 earnings estimates higher in the last 60 days, pushing the Zacks Consensus Estimate to $4.82 per share. The stock’s 52-week high breakout, supported by a 22.32 P/E ratio and a 0.32% turnover rate, suggests institutional confidence. Additionally, the RSI of 72.59 and MACD crossover above the signal line confirm short-term bullish momentum.

Options Playbook: Leveraging SCHW’s Bullish Breakout
• MACD: 1.056 (above signal line 0.584), RSI: 72.59 (overbought), Bollinger Bands: Price at upper band ($101.475)
• 200-day MA: $89.70 (well below current price), Support/Resistance: 94.06–94.65 (key near-term level)

SCHW’s technicals scream continuation of the bullish trend. The stock is trading above all major moving averages, with RSI in overbought territory and MACD in positive territory. The 52-week high breakout, combined with a 22.32 P/E ratio, suggests strong near-term momentum. For options traders, the SCHW20251226C101 and SCHW20251226C102 contracts stand out:

• SCHW20251226C101 (Call, $101 strike, 12/26 expiry):
- IV: 14.48% (moderate), Leverage Ratio: 115.14% (high), Delta: 0.587 (moderate), Theta: -0.4226 (high time decay), Gamma: 0.2268 (high sensitivity)
- Payoff at 5% upside: $101.335 → $106.399 → max(0, $106.399 - $101) = $5.399 per share. Turnover: 18,129 (liquid).
- This contract balances leverage and liquidity, ideal for capitalizing on a continuation of the breakout.

• SCHW20251226C102 (Call, $102 strike, 12/26 expiry):
- IV: 14.59% (moderate), Leverage Ratio: 241.24% (very high), Delta: 0.3599 (moderate), Theta: -0.2839 (high time decay), Gamma: 0.2161 (high sensitivity)
- Payoff at 5% upside: $101.335 → $106.399 → max(0, $106.399 - $102) = $4.399 per share. Turnover: 6,610 (liquid).
- Offers explosive potential if the rally accelerates, though higher leverage increases risk.

Aggressive bulls should consider SCHW20251226C101 into a test of $101.50. If $94.05 support holds, the 12/26 options provide a high-leverage vehicle to ride the momentum.

Backtest The Charles Schwab Stock Performance
The 3% intraday surge in the Schwab U.S. Broad Market ETF (SCHW) from 2022 to now has historically led to positive short-to-medium-term gains. The backtest data shows that 52.17% of days resulted in a return within the first three days, with a maximum return of 1.68% on day 54. Over a 10-day period, the win rate increases to 53.16%, with a maximum return of 1.77% on day 63. For a 30-day period, the win rate remains stable at 52.96%, with a maximum return of 2.14% on day 84.

SCHW’s Breakout: A High-Conviction Trade for 2026
The Charles Schwab’s 2.54% surge to a 52-week high reflects a technical and fundamental alignment favoring bulls. With RSI overbought and MACD bullish, the stock is primed for a continuation of its rally. Investors should monitor the 94.05 support level and 101.50 resistance. Meanwhile, the sector leader Ameriprise Financial (AMP) is up 1.21%, signaling broader brokerage sector strength. For those seeking leverage, the SCHW20251226C101 and SCHW20251226C102 options offer high-reward setups. Watch for a breakdown below $94.05 or a breakout above $101.50 to confirm the trade’s direction.