Regencell Bioscience Plummets 9.7%: What's Behind the Sharp Intraday Slide?

Summary
• RGC opens at $13.91 but plummets to $12.0108, a 9.7% drop from previous close of $14.05
• Intraday range spans $14.11 high to $12.0108 low, signaling extreme volatility
• Options chain shows 6754 turnover in RGC20250919P12.5 put contract with 30.43% price change
• The stock trades at 52-week low of $0.0928, yet faces critical support/resistance levels at 13.42–13.48 and 3.58–21.05. This dramatic move demands urgent analysis of technicals and options activity.

Options Volatility and Short-Term Technicals Drive Sharp Decline
The 9.7% intraday drop in RGC is driven by a combination of technical breakdowns and options market dynamics. The stock has pierced below its 30-day moving average of $13.58 and is now trading near the lower Bollinger Band at $11.81. The MACD (-8.78) has crossed below the signal line (-12.93), confirming bearish momentum. Simultaneously, the 6754-turnover RGC20250919P12.5 put contract shows 30.43% price change, indicating aggressive short-term bearish positioning. This aligns with the 95.76% implied volatility spike in the 9/19 options series, suggesting traders are pricing in significant near-term downside.

Options Playbook: Capitalizing on Volatility with RGC20250919P12.5 and RGC20251017P12.5
Technical Indicators
• 200-day average: $83.84 (far above current price)
• RSI: 53.46 (neutral territory)
• MACD: -8.78 (bearish divergence)
• Bollinger Bands: $14.79 (upper), $13.30 (middle), $11.81 (lower)

Trading Setup: With RGC testing critical support at $13.42 and the 30-day MA at $13.58, the near-term outlook favors continuation of the downtrend. The 9/19 $12.5 put (RGC20250919P12.5) and 10/17 $12.5 put (RGC20251017P12.5) stand out due to their high implied volatility (146.18% and 173.66%) and strong gamma (0.094 and 0.048).

Top Option 1: RGC20250919P12.5
• Code: RGC20250919P12.5
• Type: Put
• Strike: $12.50
• Expiry: 2025-09-19
• IV: 146.18% (extreme volatility)
• Delta: -0.411 (moderate sensitivity)
• Theta: -0.0288 (moderate time decay)
• Gamma: 0.094 (high sensitivity to price moves)
• Turnover: 24,682 (high liquidity)
• Payoff at 5% downside ($12.05): $0.45 per contract
• This put offers 30.43% price change potential with 8.49% leverage, ideal for capitalizing on the current breakdown.

Top Option 2: RGC20251017P12.5
• Code: RGC20251017P12.5
• Type: Put
• Strike: $12.50
• Expiry: 2025-10-17
• IV: 173.66% (extreme volatility)
• Delta: -0.364 (moderate sensitivity)
• Theta: -0.0251 (moderate time decay)
• Gamma: 0.048 (high sensitivity to price moves)
• Turnover: 8,565 (solid liquidity)
• Payoff at 5% downside ($12.05): $0.45 per contract
• This longer-dated put provides 26.09% price change potential with 4.39% leverage, offering extended exposure to the downtrend.

Action: Aggressive bears should consider RGC20250919P12.5 into a breakdown below $13.42. Position sizing should reflect the 95.76% IV spike and 4.16% histogram divergence in the MACD.

Backtest Regencell Bioscience Stock Performance

Critical Support Test: Immediate Action Required as RGC Approaches 52-Week Low
The 9.7% intraday drop has positioned RGC at a pivotal juncture, with the 52-week low of $0.0928 now within striking distance. Traders must monitor the 30-day support at $13.42 and the 200-day range of $3.58–$21.05. The 9/19 $12.5 put (RGC20250919P12.5) offers the highest leverage (8.49%) and liquidity (24,682 turnover) for capitalizing on the breakdown. With Amgen (AMGN) down 0.32%, sector-wide caution persists. Act now: If $13.42 breaks, RGC20250919P12.5 becomes a high-conviction short-side play.