4 Stock Picks to Celebrate 40 Years: Southern Copper

SCCO has two-tiered technical support in place

Managing Editor
Jul 30, 2021 at 10:21 AM
facebook X logo linkedin

Schaeffer's Investment Research was built from scratch on Bernie Schaeffer's vision of providing accessible professional-grade trading information to retail traders. This remains our mission today, 40 years later. Bernie --and the Schaeffer's team -- has never been one for swinging for base hits. We are always seeking the next grand slam -- in business and in trading. Options are incredibly attractive to traders with this high risk and high reward mentality. Profits are literally uncapped, while your downside risk is limited to your initial investment.

Thank you for joining us on this journey within the options industry, and we look forward to seeing you as we continue to trade. We hope you enjoy one of our carefully chosen stock picks from our team of top traders. 

Want a full breakdown of all of Schaeffer's Investment Research's top stock picks? Click here for complimentary (and instant!) access. Thank you for 40 years of support!

Mining and metals name Southern Copper Corp (NYSE:SCCO) stock has been moving within a series of lower highs, coupled with a break in SCCO's recent short-term downtrend. The shares of Southern Copper stock look to have found support near the $50 billion market-cap level and the round +50% year-over-year mark, with an added fluctuation at the year-to-date breakeven level.

Southern Copper stock, SCCO stock, mining stocks

In terms of analyst attention, there looks to be ample room for bull notes moving forward on Southern Copper stock. This is per the five of six covering brokerage firms that sport a "hold" or "strong sell" rating on the security.

Meanwhile, in the options pits, bears have been circling SCCO, leaving plenty of room for bulls to enter the ring. Specifically, Southern Copper stock sports a 10-day put/call volume ratio of 2.03 at the ISE/CBOE/PHLX SONO, which stands in the lofty 96th annual percentile. Echoing this put-skewed trading is SCCO’s front-month gamma-weighted Schaeffer's put/call open interest ratio (SOIR), which sits at a top-heavy 2.59. This means that near-the-money puts outweigh calls among options expiring in the standard August series. What’s more, spikes in the front-month gamma-weighted SOIR have typically pre-dated pops in the price, which could dislodge Southern Copper stock out of its current downtrend.

Short interest on SCCO looks to have rolled over after a climb of 44% between May and June. In fact, Southern Copper's short interest dropped 13.5% during the past two reporting periods and still accounts for 6.4% of the equity’s float. At Southern Copper stock’s average pace of daily trading, it would take shorts nearly four days to buy back their bearish bets.

Lastly, SCCO's Schaeffer's Volatility Scorecard (SVS) rating currently sits at 70 out of 100. This suggests the stock has exceeded these volatility expectations during the past year -- a boon for premium buyers.

Subscribers to Bernie Schaeffer's Chart of the Week received this commentary on Sunday, July 25.


Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.

Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!