Gildan Activewear Soars 11% on Intraday Surge: What's Fueling the Rally?

Summary
• Gildan Activewear (GIL) surges 11.03% to $54.54, hitting its 52-week high of $55.955
• Turnover spikes to 2.37 million shares, outpacing its 1.61% turnover rate average
• Sector leader Nike (NKE) gains 3.12%, hinting at apparel sector tailwinds

Gildan Activewear’s intraday rally has ignited market attention, with the stock surging to its 52-week peak amid a broader apparel sector upswing. The move defies a short-term bearish technical bias, raising questions about catalysts behind the sharp reversal. With Nike leading the sector and GIL’s options chain showing elevated volatility, traders are recalibrating strategies to capitalize on the momentum.

Sector Synergy and Technical Breakout Drive GIL’s Surge
Gildan Activewear’s 11.03% intraday jump aligns with a broader apparel sector rebound, as Nike’s 3.12% rally signals renewed consumer confidence in the space. While no direct company news triggered the move, the stock’s price action suggests a breakout from a long-term trading range. The 52-week high of $55.955, now within reach, has historically acted as a psychological barrier, and today’s intraday high of $55.955 indicates aggressive buying at critical levels. The 200-day moving average at $48.51 and 30-day average at $51.43 are both well below the current price, reinforcing the technical significance of the move.

Apparel Sector Gains Momentum as Nike Leads Charge
The Apparel, Footwear & Luxury Goods sector is showing resilience, with Nike’s 3.12% gain outpacing GIL’s 11.03% surge. While GIL’s rally appears more speculative, the sector’s broader context—driven by renewed demand for activewear and luxury goods—provides a supportive backdrop. However, GIL’s price action is decoupling from sector trends, suggesting a mix of sector-wide optimism and stock-specific momentum.

Options and ETFs to Capitalize on GIL’s Volatility
• MACD: 0.223 (bearish), Signal Line: 0.583 (bearish), Histogram: -0.360 (bearish divergence)
• RSI: 28.9 (oversold), Bollinger Bands: $49.84–$53.80 (current price near upper band)
• 200-day MA: $48.51 (below), 30-day MA: $51.43 (below)

GIL’s technicals present a high-risk, high-reward scenario. The RSI at 28.9 suggests oversold conditions, while the MACD histogram’s bearish divergence warns of potential exhaustion. Traders should focus on key levels: the 52-week high at $55.955 and the 30-day MA at $51.43. The options chain reveals two standout contracts:

• GIL20250919C55
- Type: Call, Strike: $55, Expiration: 2025-09-19
- IV: 29.59% (moderate), Leverage: 28.96% (high), Delta: 0.4869 (moderate), Theta: -0.042454 (high decay), Gamma: 0.076555 (high sensitivity)
- Turnover: 4,100 (liquid)
- Payoff (5% upside): $2.72 (max(0, 57.27 - 55))
- Why: High leverage and moderate delta position this call to benefit from a sustained breakout above $55.

• GIL20250919C52.5
- Type: Call, Strike: $52.5, Expiration: 2025-09-19
- IV: 24.13% (low), Leverage: 18.78% (moderate), Delta: 0.7043 (high), Theta: -0.041008 (high decay), Gamma: 0.081165 (high sensitivity)
- Turnover: 290 (liquid)
- Payoff (5% upside): $4.77 (max(0, 57.27 - 52.5))
- Why: High delta and gamma make this contract ideal for a short-term rally, though lower leverage limits upside compared to the $55 call.

Aggressive bulls should consider GIL20250919C55 into a close above $55.955.

Backtest Gildan Activewear Stock Performance
The backtest of GIL's performance after an intraday surge of 11% shows promising results. The strategy achieved a total return of 160.26%, significantly outperforming the benchmark return of 83.88%. The excess return generated was 76.37%, indicating that the 11% intraday surge was a catalyst for substantial gains. The strategy's CAGR was 21.59%, which is robust and suggests consistent growth over the backtested period.

GIL’s Breakout: A High-Volatility Play with Sector Tailwinds
Gildan Activewear’s 11.03% surge reflects a confluence of technical momentum and sector optimism, with Nike’s 3.12% rally underscoring broader apparel sector strength. While the RSI’s oversold reading and MACD divergence suggest caution, the 52-week high at $55.955 remains a critical test. Traders should monitor the $55.955 level for a breakout confirmation and watch Nike’s performance as a sector barometer. For those with a bullish bias, the GIL20250919C55 call offers a high-leverage vehicle to capitalize on a potential continuation. Watch for a close above $55.955 or a pullback to the 30-day MA at $51.43.