IPA Plunges 19% on Intraday Carnage: What's Fueling the Selloff?

Summary
• Immunoprecise (IPA) slumps 18.99% to $1.92, breaching its 52-week low of $0.27
• Company announces participation in H.C. Wainwright conference amid sector-wide biotech volatility
• Options chain surges with 54 contracts traded on the September 19th $2 put

Immunoprecise Antibodies Ltd. (IPA) is under siege as its stock implodes 19% intraday, trading at $1.92 versus a 52-week high of $3.25. The selloff coincides with the company's upcoming H.C. Wainwright presentation and a sector backdrop marked by Amgen's 0.94% decline. With Bollinger Bands squeezing the price between $1.46 and $3.17, the market is grappling with whether this is a short-term correction or a deeper bearish shift.

Conference Participation Sparks Profit-Taking
The 19% intraday collapse stems from profit-taking following Immunoprecise's announcement to participate in the H.C. Wainwright conference. While the event itself is a standard investor relations activity, the timing coincides with the stock's 52-week low proximity. Technical indicators confirm the bearish shift: MACD (-0.02) has crossed below its signal line, and RSI (57.8) suggests oversold conditions. The selloff is amplified by the stock's 5.46% turnover rate, indicating aggressive short-term positioning.

Biotech Sector Mixed as Amgen Leads
The biotech sector remains fragmented, with Amgen (AMGN) down 0.94% despite Vertex's $2.2B Parkinson's deal. Immunoprecise's 19% drop outpaces sector volatility, suggesting the move is stock-specific rather than sector-driven. While Vertex's autoimmune pact and Novartis' alpha-synuclein acquisition highlight sector innovation, Immunoprecise's selloff reflects individual investor sentiment rather than broader industry dynamics.

Bearish Options Play Amid Volatility Surge
• 200-day average: $0.81 (far below) • RSI: 57.8 (neutral) • MACD: -0.02 (bearish crossover) • Bollinger Bands: $1.46–$3.17 (tight squeeze)

Key levels to monitor: 200-day support at $0.39 and 30-day support at $2.01. The 57.8 RSI suggests oversold conditions, but the MACD crossover confirms bearish momentum. With Amgen (-0.94%) leading sector weakness, Immunoprecise's selloff appears to be part of a broader risk-off trade.

Top Options Picks:
• IPA20250919P2 (Put):
- Strike: $2 | Expiry: 2025-09-19 | IV: 181.64% | Delta: -0.455 | Theta: -0.0057 | Gamma: 0.5106 | Turnover: 1885
- High IV (181.64%) signals volatility premium | Delta (-0.455) indicates moderate bearish exposure | Gamma (0.5106) ensures sensitivity to price swings
- This put option offers optimal leverage (5.50%) with 181.64% implied volatility. A 5% downside to $1.82 would yield 10% profit (Payoff: $0.18).

• IPA20250919C2 (Call):
- Strike: $2 | Expiry: 2025-09-19 | IV: 188.03% | Delta: 0.5486 | Theta: -0.0106 | Gamma: 0.4926 | Turnover: 224
- Extreme IV (188.03%) reflects volatility premium | Delta (0.5486) suggests moderate bullish bias | Theta (-0.0106) indicates rapid time decay
- This call offers 6.64% leverage but faces 188.03% volatility. A 5% rebound to $2.01 would yield 5% profit (Payoff: $0.01).

Trading Outlook: Aggressive bears should prioritize the September 19th $2 put (IPA20250919P2) for maximum leverage. If the stock breaks below $1.86 intraday low, consider extending the position with the October 17th $2 put (IPA20251017P2) at 67.29% IV.

Backtest Immunoprecise Stock Performance

Critical Support Test Looms as Conference Nears
Immunoprecise's 19% selloff has created a pivotal test at its 200-day support of $0.39 and 30-day support at $2.01. With the H.C. Wainwright conference in three weeks and Amgen (-0.94%) signaling sector caution, investors must watch for a breakdown below $1.86 intraday low. The September 19th $2 put (IPA20250919P2) offers the most compelling bearish exposure, but bulls should monitor the 57.8 RSI for potential oversold bounce. Action Alert: Short-term traders should prioritize the IPA20250919P2 put if the stock closes below $1.90. Long-term holders may consider averaging down at the 200-day level.