Regencell Bioscience Surges 11% on Unprecedented Intraday Volatility—What’s Fueling the Biotech Rally?

Summary
• Regencell Bioscience (RGC) surges 11.12% to $18.68, hitting a 52-week high of $18.79
• Intraday range spans $16.90 to $18.79, with turnover surging to 326,036 shares
• Positioned as a top Chinese stock mover amid sector rotation and AI-driven biotech optimism

Regencell Bioscience’s explosive 11.12% rally on December 18, 2025, has thrust the biotech name into the spotlight. The stock’s intraday surge—from $16.90 to $18.79—reflects a confluence of sector rotation, speculative positioning, and broader market sentiment toward AI-driven healthcare innovation. With turnover reaching 326,036 shares and a 0.58% turnover rate, RGC’s move aligns with a broader trend of small-cap biotech outperformance, despite a muted performance from sector leader Amgen (AMGN).

Chinese Biotech Rotation and AI-Driven Speculation Ignite RGC
Regencell Bioscience’s 11.12% intraday surge is directly tied to its inclusion in MarketBeat’s list of top Chinese stocks with the highest dollar trading volume. The stock’s rally coincides with a broader rotation into AI-linked biotech plays, as highlighted by the sector’s focus on AI-driven drug development and personalized medicine. While no company-specific news was disclosed, RGC’s positioning as a Traditional Chinese Medicine (TCM) bioscience firm with neurocognitive disorder research aligns with investor appetite for niche, high-growth biotech opportunities. The stock’s performance mirrors broader market enthusiasm for small-cap innovation, as seen in Applied Blockchain’s 11.32% gain and Tocagen’s 16.28% jump.

Biotech Sector Mixed as Amgen Slides 0.64%
The biotech sector exhibited divergent momentum, with Regencell Bioscience’s 11.12% rally contrasting against Amgen’s 0.64% decline. While RGC’s surge reflects speculative positioning in small-cap innovation, Amgen’s dip underscores near-term profit-taking in large-cap biotech. This divergence highlights a broader market trend: investors are rotating into high-growth, AI-linked biotech plays while scaling back exposure to mature, earnings-driven giants. RGC’s performance, however, is not directly tied to Amgen’s fundamentals but rather to sector-wide speculative fervor.

Options Playbook: Capitalizing on RGC’s Volatility with Gamma-Driven Calls
• RSI: 83.29 (overbought)
• MACD: 0.80 (bullish), Signal Line: 0.40, Histogram: 0.40
• Bollinger Bands: Upper $19.15, Middle $14.36, Lower $9.57
• 200D MA: $87.68 (far above current price)
• Support/Resistance: 30D $12.96–$13.08, 200D $4.03–$21.49

RGC’s technicals suggest a short-term bullish trend amid long-term ranging. The RSI at 83.29 signals overbought conditions, while the MACD histogram’s positive divergence reinforces near-term momentum. Key levels to watch include the 200D MA ($87.68) and the 30D support at $12.96. Given the stock’s volatility and the options chain’s liquidity, aggressive bulls should target the RGC20260116C17.5 and RGC20260116C20 calls for leveraged exposure.

• RGC20260116C17.5 (Call, $17.5 strike, Jan 16 expiry):
- IV: 117.58% (high volatility)
- Delta: 0.658 (moderate sensitivity)
- Theta: -0.0518 (rapid time decay)
- Gamma: 0.0576 (price-sensitive)
- Turnover: 4,921 (liquid)
- Leverage: 5.85%
- Payoff at 5% upside: $1.14 per contract
- Why it stands out: High IV and gamma make this call ideal for a short-term rally, with liquidity ensuring easy entry/exit.

• RGC20260116C20 (Call, $20 strike, Jan 16 expiry):
- IV: 111.81% (high volatility)
- Delta: 0.498 (moderate sensitivity)
- Theta: -0.0506 (rapid time decay)
- Gamma: 0.0659 (price-sensitive)
- Turnover: 16,784 (highly liquid)
- Leverage: 9.50%
- Payoff at 5% upside: $0.83 per contract
- Why it stands out: Strong liquidity and moderate delta make this a balanced play for a continuation of RGC’s upward momentum.

Aggressive bulls should target RGC20260116C17.5 into a break above $18.79.

Backtest Regencell Bioscience Stock Performance
The backtest of RGC's performance following a 11% intraday surge from 2022 to now shows mixed results. While the stock exhibited a maximum return of 3.69% over 30 days, the win rates for both 3-day and 10-day periods were below 50%, indicating that the surge was not consistently followed by further gains.

RGC’s Volatility Presents High-Reward Options Play—Act Fast on Gamma-Driven Calls
Regencell Bioscience’s 11.12% surge reflects a perfect storm of speculative positioning and sector rotation into AI-linked biotech. While the stock’s overbought RSI and high IV suggest caution, the options chain’s liquidity and gamma-driven characteristics make the RGC20260116C17.5 and RGC20260116C20 calls compelling for short-term traders. Investors should monitor the $18.79 intraday high as a critical breakout level, with a 5% upside target offering meaningful returns. Meanwhile, sector leader Amgen’s 0.64% decline underscores the market’s preference for high-growth, speculative plays. Act swiftly on the RGC20260116C17.5 call if $18.79 holds—this is a high-conviction, gamma-driven trade.