Wheaton Precious Metals Surges 2.6% as Earnings, Strategic Deals, and Analyst Upgrades Ignite Bullish Momentum

Summary
• Wheaton Precious Metals (WPM) trades at $122.83, up 2.61% intraday, hitting a 52-week high of $123.82
• RBC Capital upgrades WPM to Outperform with a $130 price target, citing updated precious metals assumptions
• Q3 2025 earnings miss estimates, but strategic gold stream agreement with Hemlo Mining fuels optimism

Wheaton Precious Metals is surging on a confluence of catalysts: a strategic $300 million gold stream agreement, a bullish analyst upgrade, and a broader commodities rally. The stock’s 2.61% intraday gain reflects investor confidence in its low-risk streaming model and exposure to soaring silver and gold prices. With the precious metals sector at historic highs, WPM’s rally underscores its role as a leveraged play on the green energy transition and industrial demand for silver.

Strategic Gold Stream Agreement and Analyst Upgrades Drive WPM's Rally
WPM’s intraday surge is fueled by three key drivers. First, the company’s $300 million gold stream agreement with Hemlo Mining, part of a $542 million equity financing package, signals robust capital deployment and production growth. Second, RBC Capital’s upgrade to Outperform and $130 price target—raising its 2025 fair value assumption—has amplified institutional interest. Third, the broader precious metals sector is in a tailwind, with silver hitting $69.44/oz and gold surpassing $4,400/oz, driven by industrial demand for solar and EV technologies. WPM’s streaming model, which captures upside without operational risks, positions it to benefit from these trends.

Precious Metals Sector Soars as Silver and Gold Hit Records
The precious metals sector is in a historic bull market, with silver up 138% year-to-date and gold up 68%. WPM’s 2.61% gain aligns with sector momentum, as streaming and royalty companies like Franco-Nevada (FNV) and Pan American Silver (PAAS) also rally. The sector’s strength is underpinned by structural supply deficits, green energy demand, and central bank accumulation. WPM’s leverage to silver and gold prices, combined with its low-cost streaming model, makes it a standout performer in this environment.

Options and ETFs Highlight Bullish Momentum with High-Leverage Plays
• MACD: 3.71 (bullish divergence from signal line 3.01)
• RSI: 67.33 (overbought but within 10% of 70)
• Bollinger Bands: Price at $122.83, above upper band of $121.49
• 200-day MA: $93.73 (price at 31% premium)

Technical indicators suggest WPM is in a short- and long-term bullish trend. The stock is trading above its 200-day MA and Bollinger Bands, with RSI near overbought levels but not extreme. A breakout above $123.82 (52-week high) could trigger a retest of $130 (RBC’s target).

Top Options Plays:
• WPM20251226C122 (Call, $122 strike, 12/26 expiration):
- IV: 35.50% (moderate)
- Leverage Ratio: 34.05%
- Delta: 0.707 (high sensitivity to price)
- Theta: -0.771 (rapid time decay)
- Gamma: 0.0675 (strong sensitivity to price changes)
- Turnover: 25,610 (high liquidity)
- Payoff at 5% Upside ($129.00): $6.97/share. This call offers high leverage and liquidity, ideal for a short-term bullish bet on a breakout.

• WPM20251226C125 (Call, $125 strike, 12/26 expiration):
- IV: 32.89% (moderate)
- Leverage Ratio: 129.03%
- Delta: 0.317 (moderate sensitivity)
- Theta: -0.441 (slower decay)
- Gamma: 0.0755 (strong sensitivity)
- Turnover: 9,782 (high liquidity)
- Payoff at 5% Upside ($129.00): $4.00/share. This contract balances leverage and time decay, suitable for a mid-term hold if WPM consolidates above $125.

Action: Aggressive bulls may consider WPM20251226C122 into a breakout above $123.82. Conservative traders can target WPM20251226C125 for a measured rally.

Backtest Wheaton Precious Stock Performance
Here is a concise summary of what we have done and the key findings, followed by an interactive event-study report you can explore. Key points • Data period: 2022-01-01 to 2025-11-03 (latest available trading day). • Event definition: trading days on which WPM’s intraday high ≥ 103 % of the prior-day close (3% intraday surge). • Events detected: 4 instances over the entire period. ```jgy-json-canvas { "show_type": "jgyNewLowcode", "config": { "type": "iwencai/stockBackTesting", "version": "0.0.2", "url": "https://cdn.ainvest.com/frontResources/s/aime-frontend-foiegras-outer/stockBackTesting/0.0.2/stockBackTesting@0.0.2index.js" }, "data": { "datas": [ { "Backtest Object": "WPM", "Backtest Event": "3% intraday surge (4 events)", "Backtest Period": "2022.01.01 - 2025.11-03", "backtest_result": "https://cdn.ainvest.com/backtest/agent/session/784562/9da257e0-9b3e-4494-9e15-9decddcbfa5b/ecc7da46-06ff-4365-8973-3e42ddaa87d7/WPM_intraday_surge3_event_bt.json" } ] } } ``` Content: Publish_Source: Url: https://www.ainvest.com/aime/share/backtest-wpm-performance-3-intraday-surge-2022-886261/

Bullish Technicals and Sector Strength Signal WPM's Momentum to Continue
Wheaton Precious Metals’ rally is underpinned by a perfect storm of sector strength, strategic deals, and analyst upgrades. With silver and gold at record highs and industrial demand surging, WPM’s streaming model is poised to capture outsized gains. Investors should watch for a breakout above $123.82 (52-week high) and a retest of RBC’s $130 target. The sector leader, Franco-Nevada (FNV), is up 1.94% today, reinforcing the sector’s momentum. For those seeking leverage, the WPM20251226C122 call offers a high-conviction play on a continuation of this bullish trend.