Connect Biopharma Skyrockets 24.7% Intraday, What Strategic Move Ignites Investor Frenzy?

Summary
• Connect Biopharma (CNTB) surges 24.7% to $2.494, hitting 52-week high of $2.8599
• Jim Schoeneck, biotech veteran, joins board as strategic transformation accelerates
• Options chain erupts with 2384 contracts traded on CNTB20250815C2.5 call

Connect Biopharma's stock is experiencing a seismic shift as it trades at 249.7% of its 52-week low. The surge follows Schoeneck's appointment and regulatory compliance updates, with options volatility spiking to 207% implied. This volatile intraday move demands immediate attention for traders navigating the high-stakes biotech sector.

Strategic Leadership Infusion Fuels Capital Influx
The 24.7% intraday surge stems from Connect Biopharma's strategic appointment of Jim Schoeneck, a 40-year biotech leader who transformed Depomed from $1M to $450M revenue. Schoeneck's expertise in commercializing breakthroughs like FibroGen's roxadustat aligns with Connect's rademikibart pipeline targeting $18B asthma/COPD markets. The news coincides with Nasdaq compliance restoration and ADR program termination, signaling corporate governance improvements. With $84M cash runway, the leadership move directly addresses capital efficiency concerns while accelerating Phase 2 trials slated for H1 2026 data readouts.

Biotech Sector Volatility Amid AMGN's 1.9% Climb
The biotech sector remains fragmented as AMGN leads with 1.9% gains, contrasting CNTB's 24.7% surge. While AMGN's growth stems from established oncology franchises, Connect's momentum reflects speculative betting on Schoeneck's track record. Sector-wide, 200 FDA complete response letters highlight regulatory risks, but Connect's recent Type C meeting alignment with the FDA creates a favorable differentiation. The $111M market cap stock is now trading at 12.4x 2026E revenue, a 37% discount to sector average, suggesting valuation arbitrage potential.

Options Volatility and ETF Positioning for High-Conviction Biotech Trade
• MACD: 0.234 (bullish divergence) • RSI: 80.33 (overbought) • 200D Avg: $0.990 (65.4% below current price)
• Bollinger Bands: Price at 2.0σ (extreme volatility)

Connect Biopharma's 80.33 RSI and 0.3088 gamma on CNTB20250815C2.5 suggest explosive momentum. Key technical levels: 1.915 upper band (resistance), 1.262 200D MA (critical support). With 207% implied volatility, the options market is pricing in 30%+ move by August 15. Two high-conviction plays:

• CNTB20250815C2.5
- Call Option, Strike $2.50, Expiry 2025-08-15
- IV: 207.05% (extreme volatility)
- Leverage: 5.23% (high gearing)
- Delta: 0.565 (moderate directional bias)
- Gamma: 0.3088 (price-sensitive)
- Turnover: 2,384 contracts
- Payoff at $2.62 (5% move): $0.12/share
- This contract offers optimal leverage with gamma-driven acceleration if price breaks above $2.50, aligning with 52-week high target.

• CNTB20250919C2.5
- Call Option, Strike $2.50, Expiry 2025-09-19
- IV: 106.15% (reasonable volatility)
- Leverage: 6.72% (aggressive exposure)
- Delta: 0.536 (moderate directional bias)
- Gamma: 0.3925 (price-sensitive)
- Turnover: 210 contracts
- Payoff at $2.62 (5% move): $0.12/share
- This longer-dated option balances volatility with time decay (-0.004016 theta), providing cushion for post-earnings price consolidation.

Aggressive bulls should consider CNTB20250815C2.5 into a breakout above $2.50, while longer-term players may scale into CNTB20250919C2.5 as volatility normalizes.

Backtest Connect Biopharma Stock Performance
The backtest of CNTB's performance after a 25% intraday surge shows favorable short-to-medium-term gains, with the 3-Day win rate at 50.85%, the 10-Day win rate at 47.86%, and the 30-Day win rate at 59.19%. The maximum return during the backtest period was 9.21%, which occurred on day 59, indicating that CNTB can maintain positive momentum following a significant intraday increase.

Capitalizing on Biotech's High-Volatility Inflection Point
Connect Biopharma's 24.7% intraday surge reflects strategic leadership positioning and regulatory tailwinds. With Schoeneck's commercialization expertise and $84M cash runway, the stock is trading at 37% discount to sector multiples. Key catalysts: Phase 2 data in H1 2026 and potential partnership with Simcere in China. Sector leader AMGN's 1.9% rise underscores biotech's mixed momentum. Watch for $2.50 psychological level breakouts and options IV normalization. Immediate action: Buy CNTB20250815C2.5 as price tests $2.50 strike, or short-term traders can profit from $2.8599 52-week high target.