Wheaton Precious Metals Surges 5.35% Intraday: What's Fueling This Record High?

Summary
• Wheaton Precious Metals (WPM) hits all-time high of $118.875, up 5.35% from $112.83 previous close
• Q3 earnings miss offset by $300M Hemlo Mine gold stream agreement and RBC upgrade to Outperform
• Silver's 115% YTD rally and gold's 57% surge drive precious metals sector momentum
• Options chain shows 115-strike call options surging 131% as bulls bet on $130+ price target

Wheaton Precious Metals is trading at its highest level since its 1995 IPO, driven by a confluence of strategic financing moves, analyst upgrades, and a broader commodities supercycle. The stock's 5.35% intraday gain reflects optimism around its Hemlo Mine acquisition and a sector-wide shift toward precious metals as both safe-haven and industrial assets. With silver breaking $60/oz and gold approaching $4,250, WPM's streaming model is positioned to capitalize on tightening supply chains.

Strategic Financing and Analyst Upgrades Ignite Bullish Sentiment
WPM's record high stems from three catalysts: (1) A $300M gold stream agreement with Hemlo Mining to secure the Hemlo Mine acquisition, (2) RBC Capital's upgrade to Outperform with a $130 price target, and (3) a broader commodities rally driven by silver's 115% YTD surge. The gold stream deal provides financing while securing long-term production, while the analyst upgrade reflects confidence in WPM's valuation at 44x P/E. These moves align with a sector-wide shift as silver's industrial demand (50% of consumption) and gold's safe-haven appeal converge with monetary easing.

Precious Metals Sector Rally: WPM Outpaces NEM as Silver Soars
The precious metals sector is surging, with Newmont (NEM) up 5.97% intraday. However, WPM's 5.35% gain lags behind silver's 115% YTD rally and gold's 57% rise. This reflects WPM's dual exposure: while its streaming model benefits from higher metal prices, its earnings miss (-0.002% EPS shortfall) and 84.25% gross margin highlight operational risks. Silver-focused miners like Fresnillo (FRES) and Pan American Silver (PAAS) are outperforming as industrial demand for solar PV and EVs accelerates.

Options Playbook: Capitalizing on WPM's Bullish Momentum
• MACD: 2.09 (above signal line 1.53), RSI: 64.12 (neutral), Bollinger Bands: Price at 118.9 (upper band 113.17), 200D MA: 92.08 (well below)
• Key Levels: 118.9 (52W high), 112.59 (intraday low), 108 (support), 115 (resistance)
• ETF/Options: No leveraged ETF data available; focus on options with high leverage and liquidity

Top Options:
• WPM20251219C115 (Call, $115 strike, 12/19 exp):
- IV: 42.71% (moderate), Leverage: 21.61%, Delta: 0.705, Theta: -0.4578, Gamma: 0.0433, Turnover: 42,872
- Payoff: At 5% upside ($124.82), profit = $9.82/share. High leverage and moderate delta make this ideal for aggressive bulls.
• WPM20251219C116 (Call, $116 strike, 12/19 exp):
- IV: 18.55% (low), Leverage: 35.70%, Delta: 0.811, Theta: -0.4167, Gamma: 0.0781, Turnover: 53,947
- Payoff: At $124.82, profit = $8.82/share. High gamma ensures rapid premium growth if WPM breaks above $116.

Action: Aggressive bulls should buy WPM20251219C115 for 131% leverage to $130. Conservative traders can use WPM20251219C116 as a core position. Both contracts benefit from WPM's 52W high breakout and RBC's $130 target.

Backtest Wheaton Precious Stock Performance
The backtest of WPM's performance after an intraday surge of at least 5% from 2022 to the present shows favorable results. The 3-Day win rate is 55.05%, the 10-Day win rate is 57.23%, and the 30-Day win rate is 62.77%, indicating a higher probability of positive returns in the short term. The maximum return during the backtest was 6.32%, which occurred on day 57, suggesting that WPM can deliver decent gains following a 5% intraday surge.

WPM's Record High: A New Bull Market Phase Begins
WPM's 5.35% surge to $118.875 marks a pivotal moment in its 30-year history, driven by strategic financing, analyst upgrades, and a sector-wide commodities supercycle. With silver and gold surging, WPM's streaming model is uniquely positioned to capitalize on tightening supply chains. Investors should monitor the 118.9 52W high and 115/116 call options for potential 10-15% gains. Meanwhile, sector leader Newmont (NEM) up 5.97% highlights the sector's breadth. For WPM, the path to $130 is now viable, but watch for dips to 108 support to add long-term positions.