Neogenomics Soars 22.4% on Legal Victory and Sector Momentum – What’s Fueling the Surge?

Summary
• Court rules in favor of NeoGenomics in patent dispute with Natera
• Stock surges 22.4% to $8.825, hitting intraday high of $9.06
• Biotech sector gains traction with updated ESC guidelines on heart valve disease

Neogenomics (NEO) has ignited a frenzy in the biotech sector, surging over 22% in a single trading session. The stock’s meteoric rise follows a landmark court ruling in its favor and a surge in sector-wide optimism driven by groundbreaking updates in structural heart disease care. With turnover exceeding 7.9 million shares and a price range spanning $8.10 to $9.06, investors are scrambling to decipher the catalysts behind this explosive move.

Legal Victory and Sector Optimism Drive NeoGenomics' Surge
The primary catalyst for NeoGenomics’ 22.4% rally is a federal court ruling invalidating key claims in Natera’s patents related to its RaDaR test. This legal win removes a significant overhang, allowing NeoGenomics to operate without immediate infringement concerns. Simultaneously, the biotech sector is energized by updated ESC/EACTS guidelines for valvular heart disease, which emphasize proactive intervention for asymptomatic patients. These developments, coupled with a surge in sector-specific news about manufacturing advancements and AI-driven drug development, have created a tailwind for biotech stocks, with NeoGenomics benefiting from both company-specific and macro-sector momentum.

Biotech Sector Gains Momentum as NeoGenomics Leads Charge
Options and ETF Strategies for NeoGenomics' Volatile Move
• MACD: 0.143 (bullish divergence), Signal Line: -0.024, Histogram: 0.168 (momentum)
• RSI: 81.76 (overbought), Bollinger Bands: Upper $7.17, Middle $6.15, Lower $5.12
• 200D MA: $10.64 (price below), 30D MA: $6.09 (price above)

NeoGenomics is trading in a short-term bullish trend but remains below its 200-day average, suggesting long-term bearish pressure. Key support/resistance levels at $6.17–$7.59 and $7.32–$7.60 will be critical for near-term direction. While no leveraged ETF data is available, the stock’s high implied volatility (63.47%–69.86%) and gamma (0.19–0.27) make it a compelling options play.

Top Options Picks:
• NEO20250919C9 (Call, $9 strike, 2025-09-19):
- IV: 69.51% (high volatility)
- Leverage Ratio: 16.92% (moderate)
- Delta: 0.487 (moderate sensitivity)
- Theta: -0.0208 (high time decay)
- Gamma: 0.2655 (high sensitivity to price swings)
- Turnover: 20,355 (liquid)
- Payoff at 5% Upside: $0.266 (max(0, 9.266 - 9))
This contract offers a balanced risk-reward profile, ideal for capitalizing on continued momentum while mitigating time decay.

• NEO20250919C8 (Call, $8 strike, 2025-09-19):
- IV: 63.40% (moderate)
- Leverage Ratio: 8.54% (low)
- Delta: 0.760 (high sensitivity)
- Theta: -0.0205 (high time decay)
- Gamma: 0.2269 (moderate sensitivity)
- Turnover: 9,319 (liquid)
- Payoff at 5% Upside: $1.266 (max(0, 9.266 - 8))
This deep-in-the-money call provides downside protection and leverages the stock’s strong upward bias.

Action Alert: Aggressive bulls may consider NEO20250919C9 for a breakout above $9.00, while conservative traders should monitor the $8.10 intraday low for a potential pullback entry.

Backtest Neogenomics Stock Performance

Act Now: NeoGenomics' Legal Win and Sector Tailwinds Signal a High-Probability Trade
NeoGenomics’ 22.4% surge is a rare confluence of legal clarity and sector-wide optimism, making it a high-conviction trade. The stock’s technicals suggest a continuation of the rally if it holds above $8.10, with the 200-day average at $10.64 acting as a long-term resistance. Investors should also monitor the biotech sector leader Illumina (ILMN), which rose 0.38% today, for broader market sentiment. Watch for a breakdown below $8.10 or a regulatory update from Natera to gauge the sustainability of this move.