Wheaton Precious Soars 4.89% Intraday, Unveiling a New Era of Gold Demand?

Summary
• Wheaton Precious Metals (WPM) hits all-time high of $95.26, surpassing its 52-week range of $53.05–$96.40
• Institutional investors boost stakes, with Financial Sense Advisors Inc. increasing holdings by 12% in Q1
• Leadership reshuffle sees Haytham Hodaly appointed President and Curt Bernardi promoted to Executive Vice President
• Berenberg Bank upgrades price target to $95 from $87 while maintaining a 'Buy' rating
Wheaton Precious Metals has surged over 4.89% intraday, trading at $95.885 with a dynamic P/E ratio of 42.83. The stock’s rally is fueled by record Q1 earnings, institutional buying, and strategic leadership changes. With gold prices hovering near $3,400 and global trade tensions escalating, WPM’s performance reflects a broader shift in investor sentiment toward precious metals as a hedge.

Earnings Surpass Expectations, Leadership Shifts Ignite Momentum
Wheaton Precious Metals’ Q1 earnings report, released May 8, 2025, delivered a 58% revenue surge to $470.41 million and a 54% EPS increase to $0.55, far outpacing analyst forecasts. The company’s 17.4% gross profit margin and 15-year dividend track record underscore its operational resilience. Concurrently, leadership changes—Haytham Hodaly as President and Curt Bernardi as Executive Vice President—signal strategic continuity amid evolving market dynamics. Analysts at BMO Capital and Raymond James have raised price targets to $129 and $90, respectively, citing WPM’s strong balance sheet and exposure to AI-driven industrial demand for silver.

Gold Sector Rally Gains Momentum as Agnico Eagle Mines Surges 5.47%
The Gold sector, led by Agnico Eagle Mines (AEM) with a 5.47% intraday gain, reflects broader investor confidence in precious metals. Wheaton Precious’s 4.89% rally aligns with sector-wide optimism, as gold prices approach $3,400 and geopolitical risks amplify demand for safe-haven assets. AEM’s outperformance highlights the sector’s resilience amid U.S. dollar weakness and Trump-era tariff uncertainties, reinforcing WPM’s position as a key player in a structurally bullish market.

Options Playbook: Leverage WPM’s Breakout with High-Gamma Calls
• RSI: 53.96 (neutral) | MACD: 0.526 (bullish) | Bollinger Bands: $86.95–$92.59 (breakout confirmed)
• 200D MA: $72.23 (far below) | 30D MA: $89.87 (support) | Turnover: 0.47% (healthy liquidity)
• Key Levels: $92.24 (intraday low), $96.40 (52W high), $95.23 (recent all-time high)
• Short-Term Outlook: Bullish bias with $95.23 as critical resistance. A close above $96.40 could trigger a 50%+ move into $105–$110.

Top Option 1: WPM20250801C95
• Code: WPM20250801C95 | Type: Call | Strike: $95 | Expiry: 2025-08-01
• IV: 33.56% (moderate) | LVR: 36.51% (high) | Delta: 0.567 (moderate) | Theta: -0.2706 (high decay) | Gamma: 0.0706 (high sensitivity) | Turnover: $5,759
• Payoff at 5% upside (target $100.68): $5.68/share. This contract offers high gamma and leverage for a moderate price, ideal for capitalizing on a breakout.

Top Option 2: WPM20250801C96
• Code: WPM20250801C96 | Type: Call | Strike: $96 | Expiry: 2025-08-01
• IV: 37.29% (high) | LVR: 40.54% (very high) | Delta: 0.498 (moderate) | Theta: -0.2624 (high decay) | Gamma: 0.0644 (moderate) | Turnover: $1,520
• Payoff at 5% upside (target $100.68): $4.68/share. The high leverage ratio makes this a potent tool for aggressive bulls, though IV is elevated, requiring close monitoring of volatility shifts.

Trading View: Aggressive bulls should buy WPM20250801C95 into a test of $96.40. Conservative players can target a 50% move into $105 with a stop-loss below $92.24. A close above $95.23 validates a new base-on-base pattern, signaling extended upside.

Backtest Wheaton Precious Stock Performance
The backtest of WPM's performance after a 5% intraday surge shows mixed results. While the 3-day win rate is 53.46%, the 10-day win rate is slightly higher at 54.75%, and the 30-day win rate is 53.14%, indicating a moderate probability of positive returns in the short term. However, the maximum return during the backtest period was only 3.36%, which suggests that while there is a chance of positive returns, the potential upside is limited.

Act Now: Position for WPM’s Breakout or Secure Profits
Wheaton Precious Metals’ 4.89% intraday surge is a structural breakout, supported by earnings momentum, institutional buying, and sector-wide gold demand. The stock’s 52W high of $96.40 is a critical inflection point; a close above it could trigger a 50%+ move into $105–$110. Agnico Eagle Mines (AEM)’s 5.47% rally reinforces the sector’s strength. Investors should monitor $95.23 (recent all-time high) and $92.24 (intraday low) as key levels. For those seeking leverage, WPM20250801C95 offers a high-gamma, high-leverage play on the next leg higher. The coming days will test WPM’s ability to hold above $95.23—a failure here would signal a retest of $92.24, but a breakout confirms a new bullish regime.