Southern Copper Surges 3.3% on Bullish Momentum: What's Fueling the Rally?

Summary
• Southern Copper (SCCO) rockets 3.29% to $105.465, piercing intraday highs of $105.72
• Options frenzy on 9/19 expiration: 105-strike call sees 64,461-turnover, 105-put trades 4,039 contracts
• RSI near overbought (69.96), MACD histogram surges to 0.62 as 200-day MA (95.04) looks increasingly distant
Today’s explosive move in SCCO defies a news vacuum, with technicals and options flow painting a picture of aggressive bullish positioning. The stock’s 3.3% surge—its strongest intraday gain since March—has traders scrambling to decode whether this is a breakout or a flash rally. With the 52-week high at $117.46 still in reach, the battle for control of the $105 psychological level intensifies.

Bullish Technicals and Options Flow Drive SCCO Higher
SCCO’s 3.3% rally is driven by a confluence of technical catalysts and speculative options activity. The MACD (1.32) has surged above its signal line (0.697), with a histogram of 0.62 confirming bullish momentum. RSI (69.96) hovers near overbought territory, while price action has decisively pierced the 30-day MA (97.01) and 200-day MA (95.04). Options data reveals aggressive call buying at the 105-strike (64,461-turnover) and 110-strike (26,802-turnover) for October 17 expiration, suggesting institutional positioning for a continuation of the rally. The 105-put (4,039-turnover) also sees heavy action, indicating hedging against potential pullbacks.

Copper Sector Gains Steam as Freeport-McMoRan Trails SCCO's Rally
While SCCO’s 3.3% surge outpaces Freeport-McMoRan (FCX)’s 2.5% gain, the broader copper sector remains in a consolidation phase. FCX’s muted performance highlights SCCO’s outperformance, driven by its smaller-cap liquidity profile and speculative positioning. The sector’s lack of macro news means SCCO’s move is more a function of technical flow than fundamental catalysts, creating a divergence between large-cap and mid-cap copper plays.

Options and ETF Playbook: Capitalizing on SCCO's Bullish Setup
• MACD: 1.32 (bullish crossover) • RSI: 69.96 (overbought) • 200-day MA: 95.04 (below price) • Bollinger Bands: 103.83 (upper), 97.96 (middle), 92.10 (lower) • Key Resistance: 103.83 (upper BB), 105.72 (intraday high)
SCCO’s technicals scream continuation. The 105.72 intraday high becomes critical—breaking this could trigger a test of the 52-week high at $117.46. Options traders should focus on the 9/19 and 10/17 expirations, where liquidity is concentrated. Two top picks:
• SCCO20250919C105 (Call): 105-strike, 9/19 expiration, IV 32.38%, leverage 47.16%, delta 0.524, theta -0.186, gamma 0.074, turnover 64,461
• SCCO20251017C105 (Call): 105-strike, 10/17 expiration, IV 35.19%, leverage 21.77%, delta 0.531, theta -0.077, gamma 0.033, turnover 40,996
SCCO20250919C105 offers explosive potential with a 47.16% leverage ratio and high gamma (0.074), ideal for a 5% upside scenario (target $110.74). SCCO20251017C105 provides a longer runway with moderate leverage (21.77%) and decent liquidity. For a 5% move, the 105-call payoff would be $5.74 per contract, while the 105-put would expire worthless. Aggressive bulls should prioritize the 9/19 105-call for short-term velocity.

Backtest Southern Copper Stock Performance
To begin the back-test I need to formalise two key details that were not explicitly specified:1. How to detect the “3 % intraday surge”. • A common definition is: (High − Open) / Open ≥ 3 %. • Alternatives could be (Close − Open) / Open, or using the day’s low/high range.2. The holding period once the signal is triggered. • The most typical choice is “buy next-day open, sell same-day close” (1-day holding). • Other popular windows are 3, 5 or 10 trading days.Unless you prefer something different, I will:• Treat a surge as (High − Open) / Open ≥ 3 %. • Measure the equity-curve and summary statistics for holding periods of 1-, 5- and 10-trading-days.Please let me know if you’d like any adjustments before I pull the SCCO daily data (2022-01-03 through 2025-09-10) and run the test.

Act Now: SCCO's Bullish Momentum Offers Clear Entry Points
SCCO’s 3.3% surge is a technical breakout with speculative underpinnings. The 105.72 intraday high and 103.83 upper Bollinger Band form a critical cluster—breaking these could unleash a wave of algorithmic buying. With Freeport-McMoRan (FCX) up 2.5%, the sector remains in a bullish consolidation. Traders should prioritize the 9/19 105-call for velocity or the 10/17 105-call for a longer runway. Watch for a close above 105.72 to confirm the breakout, or a retest of the 97.96 middle Bollinger Band as a potential support level. For those seeking leverage, the 105-call offers a compelling risk/reward profile.