Hut 8 Surges 15.66% on Intraday Rally—What’s Fueling the Momentum?

Summary
• Hut 8 (HUT) rockets 15.66% to $59.3, hitting its 52-week high of $59.76
• Intraday volume surges to 7.87 million shares, 8.08% of float
• Options chain erupts with 213,300 contracts traded on the $45 call
• Sector leader IBM trails with a modest 1.56% gain

Hut 8’s explosive rally has captured market attention as the stock surges to its annual peak. With technical indicators flashing bullish signals and options volatility spiking, traders are scrambling to decode the catalyst behind this sharp reversal. The move defies sector trends and raises urgent questions about sustainability and positioning.
Options Volatility and Technical Breakouts Ignite Short-Term Bull Run
The 15.66% intraday surge in Hut 8 is driven by a confluence of technical triggers and options-driven liquidity. The stock pierced its 52-week high of $59.76, triggering algorithmic buying and stop-loss orders. MACD (1.98) and RSI (55.14) confirm a short-term bullish reversal, while Bollinger Bands show the price has broken above the upper band of $55.05. The $45 call option (HUT20260109C45) alone accounts for 213,300 contracts traded—85% of total options volume—indicating heavy institutional positioning. This suggests a coordinated short-term squeeze play rather than fundamental news.

Data Processing Sector Lags as HUT Defies Trend
While Hut 8’s sector—Data Processing & Outsourced Services—remains anchored by IBM’s 1.56% gain, the stock’s performance diverges sharply. The sector’s muted response suggests HUT’s rally is driven by internal technical dynamics rather than sector-wide momentum. IBM’s low volatility (84.99% IV) contrasts with HUT’s 165.24% IV on the $48 call, highlighting divergent market expectations. This decoupling indicates HUT’s move is more speculative, fueled by options liquidity than broader industry catalysts.

Capitalizing on the Bullish Squeeze: ETF-Neutral Options Playbook
• MACD: 1.98 (bullish crossover) • RSI: 55.14 (neutral) • Bollinger Bands: $55.05 (upper) • 200D MA: $27.695 (far below) • Support/Resistance: $39.85–$40.23 (30D) • Turnover Rate: 8.08% (high liquidity)

The technical setup favors aggressive long positions. With price above all major moving averages and MACD in overbought territory, the $59.3 level acts as a critical pivot. A close above $59.76 could trigger a test of the $63.50 resistance (200D MA + 36%).

Top Options Picks:
• HUT20260109C45 (Call, $45 strike, 2026-01-09):
- IV: 179.35% (extreme volatility)
- Leverage: 4.26% (moderate)
- Delta: 0.9133 (high sensitivity)
- Theta: -0.5240 (rapid time decay)
- Gamma: 0.01285 (moderate sensitivity to price swings)
- Turnover: 213,300 (liquidity fortress)
- Payoff at 5% upside ($62.27): $7.27/share
This contract offers explosive potential for a 5% price move, with high liquidity to manage entry/exit. The high delta ensures participation in the current bullish momentum.

• HUT20260109C48 (Call, $48 strike, 2026-01-09):
- IV: 165.24% (elevated)
- Leverage: 5.86% (attractive)
- Delta: 0.8700 (strong directional bias)
- Theta: -0.5709 (aggressive decay)
- Gamma: 0.01868 (high sensitivity)
- Turnover: 14,985 (solid liquidity)
- Payoff at 5% upside ($62.27): $4.27/share
This contract balances leverage and liquidity, ideal for a mid-term hold. The high gamma ensures it accelerates in value if the rally continues.

Action Alert: Aggressive bulls should target HUT20260109C45 for a short-term squeeze, while HUT20260109C48 offers a safer mid-term play. Monitor the $59.76 level—break above triggers a $63.50 target.

Backtest Hut 8 Stock Performance
The Backtest of the HUT's performance following a 16% intraday surge from 2022 to the present reveals a significant strategy return of 221.33%, vastly outperforming the benchmark return of 42.97%. The strategy achieved an excess return of 178.36% and a CAGR of 34.64%, indicating robust growth over the period. However, it's important to note that the strategy had a maximum drawdown of 0.00%, which suggests that while the strategy delivered strong returns, it did so with minimal risk.

HUT’s Bullish Breakout: Ride the Wave or Ride the Crash?
Hut 8’s 15.66% surge is a textbook short-term squeeze, driven by technical breakouts and options liquidity. While the 52-week high and bullish MACD suggest momentum, the 165%+ implied volatility on key calls warns of extreme risk. Traders should hold long positions above $59.76 but brace for a pullback if the $55.05 Bollinger Band is breached. The sector leader IBM’s 1.56% gain offers a benchmark for sustainability—watch for divergence. For now, the $45 and $48 calls are the most liquid and leveraged plays to capitalize on this volatile move.