SCCO Long Call Strategy
SCCO (Southern Copper Corporation), in the Basic Materials sector, (Copper industry), listed on NYSE.
Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals in Mexico, the United States, Peru, Brazil, Chile, and Other American countries. The company is involved in the mining, milling, and flotation of copper ore to produce copper and molybdenum concentrates; smelting of copper concentrates to produce blister and anode copper; refining of anode copper to produce copper cathodes; production of copper-molybdenum concentrates and sulfuric acid; production of refined silver, gold, and other materials; and mining and processing of copper, molybdenum, zinc, silver, gold and lead. It operates the Toquepala and Cuajone open-pit mines, smelter, and refinery in Peru; La Caridad, an open-pit copper mine, as well as copper ore concentrator; and SX-EW plant, a smelter, refinery, and rod plant in Mexico. The company also operates Buenavista, an open-pit copper mine, as well as copper concentrators and operating SX-EW plants in Mexico. In addition, it operates underground mines that produce zinc, lead, copper, silver, and gold; coal mine; and zinc refinery. The company has interests in 164,805 hectares and 505,788 hectares of concessions in Peru and Mexico; and 98,634 hectares and 28,453 hectares of exploration concessions in Argentina and Chile.
SCCO (Southern Copper Corporation) trades in the Basic Materials sector, specifically Copper, with a market capitalization of approximately $142.89B, a trailing P/E of 28.31, a beta of 1.11 versus the broader market, a 52-week range of 85.60648-221.67326, average daily share volume of 1.4M, a public-listing history dating back to 1996, approximately 17K full-time employees. These structural characteristics shape how SCCO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.11 places SCCO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SCCO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long call on SCCO?
A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration.
Current SCCO snapshot
As of June 30, 2026, spot at $173.59, ATM IV 57.92%, IV rank 72.32%, expected move 16.61%. The long call on SCCO below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 31-day expiry.
Why this long call structure on SCCO specifically: SCCO IV at 57.92% is rich versus its 1-year range, which makes a premium-buying SCCO long call relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 16.61% (roughly $28.82 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SCCO expiries trade a higher absolute premium for lower per-day decay. Position sizing on SCCO should anchor to the underlying notional of $173.59 per share and to the trader's directional view on SCCO stock.
SCCO long call setup
The SCCO long call below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With SCCO near $173.59, the first option leg uses a $175.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SCCO chain at a 31-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 SCCO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $175.00 | $11.40 |
SCCO long call risk and reward
- Net Premium / Debit
- -$1,140.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$1,140.00
- Breakeven(s)
- $186.40
- Risk / Reward Ratio
- Unbounded
Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium.
SCCO long call payoff curve
Modeled P&L at expiration across a range of underlying prices for the long call on SCCO. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$1,140.00 |
| $38.39 | -77.9% | -$1,140.00 |
| $76.77 | -55.8% | -$1,140.00 |
| $115.15 | -33.7% | -$1,140.00 |
| $153.53 | -11.6% | -$1,140.00 |
| $191.91 | +10.6% | +$551.30 |
| $230.29 | +32.7% | +$4,389.36 |
| $268.67 | +54.8% | +$8,227.42 |
| $307.05 | +76.9% | +$12,065.48 |
| $345.44 | +99.0% | +$15,903.54 |
When traders use long call on SCCO
Long calls on SCCO express a bullish thesis with defined risk; traders use them ahead of SCCO catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
SCCO thesis for this long call
The market-implied 1-standard-deviation range for SCCO extends from approximately $144.77 on the downside to $202.41 on the upside. A SCCO long call expresses a directional view that the underlying closes above the strike plus premium at expiration, ideally with implied volatility holding or expanding to preserve extrinsic value through the hold period. Current SCCO IV rank near 72.32% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on SCCO at 57.92%. As a Basic Materials name, SCCO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SCCO-specific events.
SCCO long call positions are structurally bullish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. SCCO positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SCCO alongside the broader basket even when SCCO-specific fundamentals are unchanged. Long-premium structures like a long call on SCCO are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current SCCO chain quotes before placing a trade.
Frequently asked questions
- What is a long call on SCCO?
- A long call on SCCO is the long call strategy applied to SCCO (stock). The strategy is structurally bullish: A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration. With SCCO stock trading near $173.59, the strikes shown on this page are snapped to the nearest listed SCCO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SCCO long call max profit and max loss calculated?
- Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium. For the SCCO long call priced from the end-of-day chain at a 30-day expiry (ATM IV 57.92%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$1,140.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SCCO long call?
- The breakeven for the SCCO long call priced on this page is roughly $186.40 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current SCCO market-implied 1-standard-deviation expected move is approximately 16.61%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a long call on SCCO?
- Long calls on SCCO express a bullish thesis with defined risk; traders use them ahead of SCCO catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
- How does current SCCO implied volatility affect this long call?
- SCCO ATM IV is at 57.92% with IV rank near 72.32%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.