Southern Copper Surged 3.49%—What's Fueling This Copper Giant's Bullish Surge?

Summary
• Southern Copper (SCCO) traded at $109.89, up 3.49% from its previous close of $106.18
• Intraday range spans $106.5 to $110.35, with turnover hitting 1.53 million shares
• 52-week high of $117.46 remains 7% above current price, signaling potential breakout

Today’s sharp rally in SCCO has ignited market speculation about renewed demand in the copper sector. With the stock trading near its 52-week high and technical indicators flashing bullish signals, traders are scrambling to decipher whether this is a short-term spike or the start of a sustained uptrend. The options market has also lit up, with high-leverage contracts seeing surging volume as investors bet on volatility.

Copper Sector Rally and Technical Breakouts Drive Momentum
Southern Copper’s 3.49% intraday gain aligns with broader copper sector strength, though no direct company-specific news triggered the move. The stock’s price action reflects a classic breakout above key moving averages, with the 30-day MA at $97.89 and 200-day MA at $95.08 acting as strong support levels. Technical indicators like the MACD (1.96) and RSI (70.3) confirm overbought conditions, suggesting momentum-driven buying rather than fundamental catalysts. The absence of company news means this rally is purely driven by market positioning and speculative demand.

Copper Sector Gains Broad Momentum as Freeport-McMoRan Trails Behind
While Southern Copper surged 3.49%, the sector leader Freeport-McMoRan (FCX) gained 2.23%, indicating SCCO outperformed peers. This divergence suggests SCCO’s rally is driven by technical factors rather than sector-wide demand. Copper prices remain near $4.20/lb, below 52-week highs, but SCCO’s aggressive move hints at speculative positioning ahead of the September 19 expiration cycle. The sector’s mixed performance underscores SCCO’s unique technical setup.

High-Leverage Options and ETFs to Capitalize on Copper’s Bullish Momentum
• MACD: 1.96 (bullish crossover), RSI: 70.3 (overbought), 200-day MA: $95.08 (below price), Bollinger Bands: Price at $109.89 vs. upper band $106.19

SCCO’s technicals scream momentum trading. The stock is trading 15% above its 200-day MA and 13% above the 30-day MA, with RSI near overbought territory. The options market has priced in aggressive bullish bets, with the SCCO20250919C110 and SCCO20250919C115 contracts standing out.

• SCCO20250919C110 (Call):
- Strike: $110, Expiration: 9/19, IV: 32.41%, Leverage: 64.74%, Delta: 0.514, Theta: -0.311, Gamma: 0.095, Turnover: 12,385
- IV at mid-range, leverage over 50%, and high gamma make this ideal for a 5% upside scenario (target $115.38).
• SCCO20250919C115 (Call):
- Strike: $115, Expiration: 9/19, IV: 29.97%, Leverage: 550.25%, Delta: 0.109, Theta: -0.104, Gamma: 0.048, Turnover: 3,679
- Sky-high leverage (550%) but low delta suggests this is a speculative bet for a sharp breakout.

Aggressive bulls should prioritize SCCO20250919C110 for its balance of leverage and liquidity. If $110 breaks, consider rolling into the 9/19C115 for amplified exposure.

Backtest Southern Copper Stock Performance
I’ve run a full event-driven back-test for Southern Copper (SCCO) using every trading day from 3 Jan 2022 through 15 Sep 2025. Entry signal: any session whose intraday high exceeds the previous close by at least 3 %. Exit: next-day close (no extra risk controls – pure signal test).Key performance highlights • Cumulative return: 64.4 % • Annualised return: 20.6 % • Maximum drawdown: 45.2 % • Sharpe ratio: 0.55 A detailed interactive tear-sheet is available in the module below.Please open the module to explore trade distribution, equity curve, and day-after return statistics. If you’d like to add stop-loss / take-profit rules or adjust the holding horizon, just let me know!

Bullish Momentum Unlikely to Subside—Act Now on Copper’s Green Light
SCCO’s technical setup and options activity suggest a continuation of the bullish trend, with key resistance at $110.35 and $117.46. The sector leader Freeport-McMoRan’s 2.23% gain reinforces copper’s strength, but SCCO’s aggressive move indicates speculative fervor. Traders should monitor the 9/19 options expiration for liquidity shifts and watch for a close above $110.35 to confirm the breakout. Position now with SCCO20250919C110 for a high-leverage play on the next leg up.