Southern Copper Surges 3.49% on Bullish Momentum: What’s Fueling the Rally?

Summary
• Southern Copper (SCCO) trades at $109.89, up 3.49% intraday
• Intraday high hits $110.35, low at $106.50
• Turnover of 1.4M shares, 1.87% of float
• RSI at 70.30, MACD histogram at 0.86
Today’s explosive move in Southern Copper has ignited market speculation, with the stock surging past key resistance levels amid a confluence of technical and sector-driven factors. The rally, fueled by a short-term bullish trend and elevated volatility, has positioned SCCO as a focal point for traders seeking momentum plays in the materials sector.

Technical Breakout and Volatility Surge Drive SCCO Higher
Southern Copper’s 3.49% intraday gain is primarily attributed to a technical breakout above critical moving averages and a surge in implied volatility. The stock pierced its 30-day moving average ($97.89) and 200-day average ($95.08), triggering algorithmic buying and retail momentum. The RSI (70.30) and MACD (1.96) signal overbought conditions and bullish momentum, while the 34.95% implied volatility on the September 19 $110 call options reflects heightened speculative activity. This move aligns with a broader commodities rebound, though no direct company-specific news has been reported.

Options Playbook: Leveraging SCCO’s Volatility with Gamma-Driven Calls
• MACD: 1.96 (bullish divergence)
• RSI: 70.30 (overbought)
• Bollinger Bands: $106.19 (upper), $91.15 (lower)
• 200-day average: $95.08 (well below current price)
• Gamma: 0.088791 (high sensitivity to price moves)
• Theta: -0.315349 (rapid time decay)
• Leverage ratio: 65.33% (aggressive potential)
SCCO’s technicals suggest a continuation of the bullish trend, with key support at $96.01 and resistance at $110.35. The $110 call (SCCO20250919C110) and $100 call (SCCO20251017C100) stand out for their high gamma and leverage ratios. A 5% upside to $115.38 would yield a $5.38 payoff for the $110 call and $15.38 for the $100 call, assuming no volatility compression. The $100 call’s 0.83 delta and 10.07% leverage make it ideal for a near-term breakout trade, while the $110 call’s 0.49 delta and 65.33% leverage suit a mid-term hold. Aggressive bulls should target a close above $110.35 to confirm the breakout.

Backtest Southern Copper Stock Performance
Below is an interactive module summarising the back-test you requested. Please scroll through the tabs to view basic information, entry criteria and the full performance report.Key observations and assumptions 1. Data period: 1 Jan 2022 – 15 Sep 2025 (latest available). 2. Execution price: close of the trigger day; exits are automatically handled by the engine one bar after the next entry (first-in-first-out). 3. No additional risk controls (stop-loss / take-profit) were specified; results therefore reflect the raw signal. 4. The strategy shows attractive gross returns but experiences material drawdowns—aligning risk management with your tolerance level would be my next recommendation.Let me know if you’d like to test alternative holding rules, add stop-loss / take-profit layers, or benchmark against other copper miners.

Act Now: SCCO’s Momentum Could Define the Next Bull Run
Southern Copper’s technical breakout and elevated volatility position it as a prime candidate for further gains, provided it sustains above $106.19. The $110 call (SCCO20250919C110) and $100 call (SCCO20251017C100) offer high-reward opportunities for traders capitalizing on the rally. Meanwhile, the sector leader Apollo Global (APO) has risen 0.67%, signaling broader market optimism. Investors should monitor SCCO’s ability to hold above its 200-day average and watch for a potential follow-through move into October. For now, the message is clear: momentum is king, and SCCO is leading the charge.