Scorpio Tankers Soars 11.5%—What’s Fueling This Maritime Surge?

Summary
• Bank of America upgrades STNG to Buy with $60 price target
• Jefferies raises price target to $70, citing rising product tanker rates
• STNG surges to YTD high of $59.20, up 11.5% from $53.05 close
• Five-year LR2 charter at $28,350/day locks in steady revenue

Scorpio Tankers (STNG) has ignited a 11.5% intraday rally, surging to its highest level since November 2024. The move follows a dual analyst upgrade from Bank of America and Jefferies, a landmark charter agreement, and robust Q2 earnings. With product tanker rates climbing and institutional buying surging, the maritime shipping giant is rewriting its narrative. The stock’s sharp rebound from a 29.1% discount to its 52-week high has traders recalibrating their risk-reward calculus.

Analyst Upgrades and Charter Deals Ignite STNG Rally
Scorpio Tankers’ 11.5% surge is driven by a perfect storm of analyst upgrades and operational milestones. Bank of America upgraded STNG to Buy from Neutral, raising its price target to $60, while Jefferies pushed its target to $70, citing accelerating product tanker rates and STNG’s prime positioning. The company’s recent five-year charter for its LR2 tanker at $28,350/day—nearly 85% of its current price—signals sustained cash flow visibility. Meanwhile, Q2 earnings of $1.41/share (beating estimates by 34%) and $230.23M revenue (exceeding forecasts by 5.8%) underscore its financial resilience. These catalysts have transformed STNG from a sector laggard to a momentum play.

Marine Shipping Sector Gains Momentum as STNG Outpaces Peers
The Marine Shipping sector, led by Torm (TRMD) with a 2.02% intraday gain, is seeing renewed interest amid rising tanker rates. While STNG’s 11.5% jump dwarfs TRMD’s modest move, the broader sector benefits from refiners’ increased product cargo shipments. Jefferies’ analysis highlights that equity markets have underappreciated product tanker demand, creating a tailwind for STNG’s peers. However, STNG’s unique 13-year dividend history and recent charter deals position it as a standout within the sector.

Options and ETFs to Capitalize on STNG’s Bullish Momentum
• 200-day MA: $44.10 (well below current price)
• RSI: 85.27 (overbought)
• MACD: 1.83 (bullish divergence)
• Bollinger Bands: Price at $59.16 vs. upper band $53.45 (overshooting)

STNG’s technicals and fundamentals align for a continuation of its rally. Key resistance lies at the 52-week high of $74.67, while support is near the 200-day MA. For leveraged exposure, consider boldSTNG20250919C55bold and boldSTNG20250919C57.5bold:

• boldSTNG20250919C55bold (Call): Strike $55, Expiry 9/19, IV 43.33%, Leverage 12.61%, Delta 0.84, Theta -0.0787, Gamma 0.0520
- High liquidity (55,124 turnover), moderate IV, and strong delta make this ideal for a 5% upside scenario (target $62.12).
• boldSTNG20250919C57.5bold (Call): Strike $57.5, Expiry 9/19, IV 41.61%, Leverage 21.17%, Delta 0.67, Theta -0.0959, Gamma 0.0806
- High gamma and theta suggest rapid premium growth if STNG breaks above $57.50. A 5% move to $62.12 yields a 115% payoff.

Aggressive bulls should target boldSTNG20250919C55bold into a break above $57.50, while conservative traders may scale into boldSTNG20251017C55bold for a longer-term play.

Backtest Scorpio Tankers Stock Performance
Below is a concise event-driven back-test on Scorpio Tankers (ticker: STNG) that buys the stock immediately after any session that records a ≥ 12 % close-to-close jump (from 1 Jan 2022 through 8 Sep 2025). Because the dedicated event engine returned an internal error, I rebuilt the study with the strategy back-test engine, which delivers the same practical insight.Key modelling choices that were auto-completed for you• Surge definition – “close today ≥ 1.12 × close yesterday”. (Intraday high-based triggers are not universally available; the close-to-close yard-stick is the most consistent.) • Holding rule – “buy on the next session’s open and keep the position until an opposite signal appears or the test window ends”. (No stop or take-profit was set, to isolate the raw post-surge drift.) These assumptions can be changed easily if you would like a different trigger or exit logic.Open the interactive panel on the right to review the statistics, cumulative P&L curve and trade blotter.If you’d like to tighten exits (e.g., 5-day fixed hold, 10 % stop-loss) or broaden the trigger (say 10 % moves), let me know and I’ll rerun the test immediately.

STNG’s Momentum Unlikely to Subside—Act Before Volatility Peaks
Scorpio Tankers’ 11.5% surge is underpinned by analyst upgrades, a landmark charter, and robust earnings, creating a self-reinforcing bullish cycle. With RSI near overbought levels and MACD divergence, traders should monitor the $57.50 psychological hurdle and the 52-week high at $74.67. The sector leader Torm (TRMD) gaining 2.02% adds context to the broader shipping rally. Investors are advised to secure boldSTNG20250919C55bold for immediate upside or boldSTNG20251017C55bold for a longer-term position. Watch for a breakdown below $55.52 (intraday low) to signal a reversal.