Teck Resources Plunges 5.7%: What's Behind the Copper Giant's Sudden Slide?

Summary
• Teck Resources (TECK) slumps to $31.81, down 5.69% from its $33.73 close
• Intraday range spans $33.37 to $31.68 amid heightened volatility
• Copper futures dip to $4.51/lb, reversing prior month's 3.27% gains
• Sector leader Freeport-McMoRan (FCX) declines 1.61% as tariffs reshape market dynamics

Teck Resources is under siege as copper prices and sector sentiment unravel. The stock's 5.7% intraday drop mirrors broader copper market turbulence triggered by U.S. tariff revisions and geopolitical supply chain disruptions. With the stock trading near its 52-week low of $28.32, investors are scrambling to decipher whether this is a buying opportunity or a warning sign in a sector already grappling with production bottlenecks and shifting trade policies.

U.S. Tariff Clarification Sparks Copper Selloff
The sudden collapse in Teck Resources' share price stems directly from U.S. President Donald Trump's revised tariff policy on copper. Initially announced as a 50% tariff on all copper imports, the policy was later clarified to exclude refined copper and ore, targeting only 51 semi-finished products. This clarification triggered a 20% single-session selloff in copper futures as traders unwound positions built up in anticipation of the original broader tariffs. The resulting oversupply in U.S. markets forced prices back in line with global benchmarks, directly impacting copper producers like Teck. With the stock now trading below its 30-day moving average of $32.99 and within the lower Bollinger Band at $31.07, the technical picture confirms the bearish sentiment.

Copper Sector Reels as Freeport-McMoRan Drags Down Peers
The copper sector is experiencing synchronized weakness, with Freeport-McMoRan (FCX) down 1.61% despite its dominant position in global copper production. This sector-wide decline underscores the vulnerability of copper producers to policy shifts and supply chain adjustments. While Teck's 5.7% drop outpaces FCX's 1.6% decline, both stocks are reacting to the same fundamental drivers: U.S. tariff revisions, redirected global copper flows, and the ongoing El Teniente mine accident in Chile that disrupted 20,000-30,000 tons of production. The sector's collective exposure to geopolitical and regulatory risks is now front and center for investors.

Bearish Options and Key Levels: Navigating the Copper Downturn
• 200-day MA: $38.82 (well above current price)
• 30-day MA: $32.99 (below current price)
• RSI: 57.62 (neutral but trending down)
• MACD: -0.295 (bearish divergence)
• Bollinger Bands: $34.44 (upper), $31.07 (lower) – current price at $31.81 near support

Key technical levels suggest a continuation of the bearish trend. The stock is trading within the lower Bollinger Band and below all major moving averages, with RSI indicating weakening momentum. The 52-week low at $28.32 remains a critical psychological level to watch. For options traders, the most compelling opportunities lie in deep out-of-the-money puts with high leverage and gamma sensitivity to capture potential downside acceleration.

Top Option 1: TECK20250912P30.5
• Put option with $30.5 strike, expiring 2025-09-12
• Implied Volatility: 44.98% (moderate)
• LVR: 91.10% (high leverage)
• Delta: -0.250965 (moderate sensitivity)
• Theta: -0.020527 (significant time decay)
• Gamma: 0.141362 (high sensitivity to price changes)
• Turnover: $7,150 (reasonable liquidity)

This contract offers optimal leverage with a strike price below current levels, positioning it to benefit from a potential breakdown below $31.07. A 5% downside scenario (to $30.22) would generate a 30%+ return on the put premium.

Top Option 2: TECK20250912P31.5
• Put option with $31.5 strike, expiring 2025-09-12
• Implied Volatility: 38.49% (moderate)
• LVR: 54.97% (high leverage)
• Delta: -0.405209 (strong sensitivity)
• Theta: -0.010252 (moderate time decay)
• Gamma: 0.201052 (exceptional sensitivity)
• Turnover: $5,100 (adequate liquidity)

This option provides a balance of leverage and gamma, ideal for capitalizing on a sharp move below $31.07. A 5% downside scenario would yield a 25%+ return. Aggressive bearish traders should consider a diagonal spread using these puts to hedge against volatility decay while maintaining directional exposure.

Backtest Teck Resources Stock Performance

Act Fast: Copper's Volatility Demands Tactical Moves
The current selloff in Teck Resources reflects a perfect storm of policy uncertainty, supply chain disruptions, and bearish technical indicators. With copper prices at $4.51/lb and the stock trading near its 52-week low, the immediate outlook remains bearish. Key levels to monitor include the $31.07 support (lower Bollinger Band) and the $28.32 52-week low. Sector leader Freeport-McMoRan's 1.61% decline suggests the entire copper complex remains vulnerable to further weakness. Investors should prioritize risk management through options strategies like the recommended puts while keeping a close eye on U.S.-China copper trade dynamics and production updates from Chile and Congo. If $31.07 breaks, the TECK20250912P30.5 put offers a high-leverage short-side opportunity.