Southern Copper Soars to 52-Week High Amid Copper Rally and AI-Driven Demand Surge

Summary
• Southern Copper (SCCO) surges 2.45% to $141.75, hitting its 52-week high of $144.76
• Intraday range spans $140.74 to $144.76, with turnover at 1.41 million shares
• Copper prices hit record highs on supply disruptions and AI infrastructure demand
• Options chain shows heightened activity in November 21st expiration contracts

SCCO’s sharp intraday rally aligns with a global copper price surge driven by supply constraints and surging demand from AI data centers and energy transition projects. The stock’s 2.45% gain reflects optimism around Southern Copper’s exposure to the critical metal, while technical indicators and options activity suggest sustained momentum ahead.

Copper's Record High and AI Infrastructure Demand Fuel SCCO's Surge
Southern Copper’s intraday rally to $141.75 is directly tied to the record-breaking ascent in global copper prices, which hit $11,146 per ton on the London Metal Exchange. Supply-side disruptions at Chilean and Indonesian mines, coupled with a thaw in U.S.-China trade tensions and expectations of Fed rate cuts, have tightened the physical copper market. Meanwhile, AI infrastructure demand—requiring vast amounts of copper for data centers and cooling systems—has amplified long-term bullish sentiment. Southern Copper’s status as a low-cost producer with operations in Peru and Mexico positions it to capitalize on this confluence of factors, driving immediate investor enthusiasm.

Copper Sector Rally Gains Momentum as Freeport-McMoRan Surges 3.16%
The broader copper sector is surging in tandem with SCCO, led by Freeport-McMoRan (FCX), which has gained 3.16% intraday. FCX’s recent earnings report highlighted robust production and pricing power, reinforcing the sector’s strength. SCCO’s 2.45% gain trails FCX but outperforms the Materials Select Sector SPDR ETF (XLB), which has risen 1.8%. The sector’s rally reflects shared exposure to copper’s record prices and AI-driven demand, though SCCO’s lower production costs and geographic diversification offer a distinct edge.

Options and ETF Strategies for Capitalizing on SCCO's Bullish Momentum
• 200-day MA: $99.33 (well below current price) | RSI: 56.00 (neutral) | MACD: 4.89 (bullish divergence)
• Bollinger Bands: $122.51–$137.42 (price above upper band) | K-line pattern: Short-term bullish trend

SCCO’s technicals suggest a continuation of its upward trajectory, with key support at $128.29 and resistance at $144.76. The stock’s 2.45% intraday gain aligns with a broader copper sector rally, making it a prime candidate for directional plays. For leveraged exposure, consider the Copper Select Sector SPDR ETF (COPX), though no leveraged ETF data is available in the provided chain.

Top Options Picks:
• SCCO20251121C140 (Call, $140 strike, Nov 21):
- IV: 36.15% (moderate) | Leverage: 22.36% | Delta: 0.583 | Theta: -0.163 | Gamma: 0.0296 | Turnover: 42,633
- High gamma ensures sensitivity to price moves; moderate IV supports cost efficiency. Projected 5% upside (to $148.84) yields a $8.84 payoff per contract.
• SCCO20251121C145 (Call, $145 strike, Nov 21):
- IV: 36.86% (moderate) | Leverage: 34.63% | Delta: 0.435 | Theta: -0.153 | Gamma: 0.0293 | Turnover: 38,683
- Strong theta decay and high gamma make it ideal for short-term bullish bets. A 5% upside scenario (to $148.84) generates a $3.84 payoff.

Aggressive bulls should target a break above $144.76 (52-week high) to validate the next leg higher. SCCO20251121C140 offers optimal leverage for this scenario, while SCCO20251121C145 provides a safer entry with defined risk.

Backtest Southern Copper Stock Performance
Below is your event-driven back-test. The module will automatically visualise cumulative performance, win-rate curves, post-event return profiles and more.Key takeaways (summary):• 172 events identified. • Median 1-day excess return is essentially flat; edge grows gradually, reaching ≈ +2.9 % after 30 trading days, without statistical significance. • Win-rate hovers ~50-56 %; no clear directional bias immediately after surges. Interpretation: A 2 %+ daily jump in SCCO has not yielded a statistically robust follow-through over the past three years. Short-term momentum fades quickly; longer holding periods show mild positive drift but indistinguishable from benchmark. Consider additional filters (volume spike, copper price moves, macro context) before trading on this signal.

Bullish Setup Confirmed: Position for SCCO's Next Move
Southern Copper’s 2.45% intraday surge to a 52-week high underscores its alignment with the copper supercycle and AI-driven demand. Technicals and options activity confirm a bullish bias, with key resistance at $144.76 and $145. Aggressive positioning via the SCCO20251121C140 call option offers high leverage for a potential breakout. Meanwhile, the broader copper sector—led by FCX’s 3.16% gain—reinforces the narrative of sustained strength. Watch for a close above $144.76 to confirm the next phase of the rally and consider scaling into the SCCO20251121C145 call for a more conservative entry.