Flex (FLEX) Surges 4.8% Amid Sector Rally and Volatile Options Activity – What’s Fueling the Momentum?

Summary
• Flex (FLEX) rockets 4.8% to $51.79, hitting an intraday high of $51.96 and a low of $49.36
• Sector leader JBL (Jabil) gains 2.3%, signaling strength in electronic equipment and components
• Options frenzy: FLEX20250919C50 call option surges 80% in turnover, hinting at bullish bets

Flex’s intraday surge defies a lack of direct company news, aligning instead with broader sector tailwinds and speculative options activity. With the stock trading near its 52-week high of $53.97 and a dynamic PE of 25.31, traders are parsing technical signals and sector dynamics to gauge sustainability. The Electronic Equipment sector’s focus on AI-driven manufacturing and EV component innovation may be amplifying Flex’s momentum.

Sector-Wide Tech Innovations and EV Growth Drive Flex’s Intraday Surge
Flex’s 4.8% rally aligns with sector-level tailwinds from AI infrastructure and EV component demand. Recent news highlights include Renesas’ three-level buck topology for USB-C power delivery and ABB’s record-efficient motors, signaling robust demand for advanced electronics. Meanwhile, NEVs accounted for 29% of global auto sales in Q2, a trend Flex is positioned to benefit from as a supplier of flexible printed circuits. The stock’s performance mirrors JBL’s 2.3% rise, suggesting sector-wide optimism over manufacturing automation and energy transition technologies.

Electronic Equipment Sector Gains Momentum as JBL Leads 2.3% Rally
Flex’s 4.8% gain outpaces JBL’s 2.3% rise, indicating relative strength within the sector. While JBL’s modest rally reflects broader manufacturing optimism, Flex’s sharper move suggests speculative positioning around its exposure to AI and EV supply chains. The sector’s 15% CAGR in datacenter infrastructure and 29% NEV sales share further validate the thematic underpinnings of Flex’s rally.

Options and ETF Strategy: Capitalizing on Flex’s Volatility and Sector Strength
• MACD: -0.139 (bearish divergence), Signal Line: 0.099, Histogram: -0.238 (negative momentum)
• RSI: 49.43 (neutral), Bollinger Bands: $51.73 (upper), $50.15 (middle), $48.56 (lower)
• 200D MA: $41.15 (well below current price), 30D MA: $50.87 (close to price)

Flex’s technicals suggest a short-term consolidation phase after a sharp rally. Key levels to watch include the 52-week high of $53.97 and the upper Bollinger Band at $51.73. The stock’s proximity to its 52-week high and elevated turnover (1.74M shares) indicate potential for a breakout or reversal. While no leveraged ETF data is available, sector ETFs like XLK could offer correlated exposure.

Top Options Picks:
• FLEX20250919C50 (Call, $50 strike, 2025-09-19):
- IV: 33.40% (moderate)
- Leverage Ratio: 16.93% (high)
- Delta: 0.678 (moderate sensitivity)
- Theta: -0.078 (rapid time decay)
- Gamma: 0.0735 (high sensitivity to price changes)
- Turnover: 6,783 (liquid)
- Payoff (5% upside): $4.38 per contract (max(0, 54.38 - 50))
This call option offers high leverage and gamma, ideal for capitalizing on a potential breakout above $51.73. The moderate IV and liquid turnover make it a viable short-term play.

• FLEX20251017C50 (Call, $50 strike, 2025-10-17):
- IV: 33.94% (moderate)
- Leverage Ratio: 13.22% (high)
- Delta: 0.649 (moderate sensitivity)
- Theta: -0.045 (moderate time decay)
- Gamma: 0.0534 (moderate sensitivity)
- Turnover: 3,919 (liquid)
- Payoff (5% upside): $4.38 per contract (max(0, 54.38 - 50))
This option balances time decay and gamma, offering a longer runway for Flex to test its 52-week high. Its moderate IV and liquidity make it a safer bet for mid-term bullish positioning.

Aggressive bulls may consider FLEX20250919C50 into a bounce above $51.73, while FLEX20251017C50 offers a more conservative entry for a sustained rally.

Backtest Flex Stock Performance
The backtest of FLEX's performance after a 5% intraday surge shows favorable short-to-medium-term gains, with the 3-Day win rate at 54.82%, the 10-Day win rate at 59.97%, and the 30-Day win rate at 64.79%. The maximum return during the backtest period was 10.03%, which occurred on day 59, indicating that FLEX can maintain positive momentum following a significant intraday surge.

Flex’s 4.8% Rally: A Sector-Driven Breakout or Short-Lived Spike?
Flex’s intraday surge hinges on its ability to break above $51.73 and test its 52-week high of $53.97. The stock’s technicals suggest a consolidation phase, but sector-level tailwinds from AI and EV growth could extend the rally. Traders should monitor JBL’s 2.3% performance as a sector barometer. For now, the FLEX20250919C50 and FLEX20251017C50 options offer high-leverage pathways to capitalize on potential breakouts. Watch for a decisive close above $51.73 or a breakdown below $49.77 (30D support) to determine next steps.