Sarepta’s Volatility Storm: 15.68% Intraday Drop Amid Restructuring and Sector Turbulence

Summary
• Sarepta (SRPT) plunges 15.68% intraday to $18.525, hitting 52-week low of $16.86
• Turnover surges 23.18% as 52-week high of $150.48 fades into distant memory
• Restructuring news and DMD patient deaths dominate headlines

Today’s seismic move in Sarepta reflects a confluence of operational turmoil and sector-wide headwinds. The stock’s collapse from a 52-week high of $150.48 to an intraday low of $16.86 underscores the fragility of its business model amid restructuring and clinical setbacks. With turnover hitting 21.66 million shares, the sell-off has become a focal point for biotech investors navigating a sector under pressure.

Restructuring and DMD Controversy Trigger Sarepta’s Sharp Decline
Sarepta’s 15.68% drop is directly tied to its restructuring announcement, including 500 layoffs (36% of its workforce) and cuts to gene therapy programs following two DMD patient deaths. The company’s recent restructuring, highlighted in Fierce Biotech and GEN, has eroded investor confidence. Compounding this, the sector’s focus on AI-driven therapies and regulatory scrutiny of gene therapy trials has amplified the sell-off. The news has cast doubt on Sarepta’s ability to maintain its pipeline amid rising operational costs and clinical risks.

Biotech Sector Under Pressure as Sarepta’s Cut Echoes Industry Concerns
While Sarepta’s decline is extreme, the broader biotech sector is also struggling. Amgen (AMGN), the sector leader, fell 0.78% intraday, reflecting investor caution. However, Sarepta’s move is more severe due to its specific operational risks, including program cuts and workforce reductions. The sector’s focus on AI-driven drug discovery and mRNA delivery, as seen in recent GEN and Nature Biotechnology reports, has shifted capital away from traditional gene therapy firms like Sarepta.

Options Playbook: High-Leverage Puts and Call Protection Amid Volatility
• 200-day average: $86.39 (far above current price)
• RSI: 71.01 (overbought territory)
• MACD: -3.44 (below signal line -4.63)
• Bollinger Bands: Lower band at $16.09 (near support)

Key levels to watch include the 52-week low at $16.86 and the 200-day support range of $17.1–$19.52. The RSI overbought reading and MACD divergence suggest further downside potential. For aggressive short-term bets, consider the following options:

• SRPT20250725P18 (Put, Strike $18, Expiry 2025-07-25)
- IV: 93.31% (high volatility)
- Leverage Ratio: 20.20% (moderate)
- Delta: -0.44 (sensitive to price moves)
- Theta: -0.0121 (moderate time decay)
- Gamma: 0.157 (high sensitivity to gamma)
- Turnover: $39,881 (liquid)
- Price Change Ratio: 1,400.00% (extreme volatility)
- Payoff at 5% Down: $0.40 (strike $18 vs. projected $17.60)
- Why: High gamma and moderate leverage make this put ideal for a bearish move below $18.

• SRPT20250725P18.5 (Put, Strike $18.5, Expiry 2025-07-25)
- IV: 90.74% (high volatility)
- Leverage Ratio: 15.95% (moderate)
- Delta: -0.52 (high sensitivity)
- Theta: -0.0014 (low time decay)
- Gamma: 0.163 (high sensitivity)
- Turnover: $16,354 (liquid)
- Price Change Ratio: 570.59% (extreme volatility)
- Payoff at 5% Down: $0.90 (strike $18.5 vs. projected $17.60)
- Why: Strong delta and low theta make this a time-insensitive bearish play.

If the price breaks below $16.09 (lower Bollinger Band), SRPT20250725P18.5 offers short-side potential. Aggressive bulls may consider SRPT20250725C18 for a bounce above $18.

Backtest Sarepta Stock Performance
The backtest of SRPT's performance after a -16% intraday plunge shows mixed results. While the 3-day win rate is 46.98%, the 10-day win rate is slightly lower at 46.51%, and the 30-day win rate is 44.92%. The returns over the respective time frames are negative, with the maximum return during the backtest period being -0.17% over 30 days, indicating that the stock tends to recover only partially from such a significant drop.

Act Now: Sarepta’s Downside Risks Outweigh Short-Term Bounces
Sarepta’s move is far from sustainable, with technicals and fundamentals aligning for further weakness. The RSI overbought reading and MACD divergence suggest a continuation of the downtrend. Investors should focus on key support levels at $16.86 and $16.09, while monitoring sector leader Amgen’s -0.78% intraday decline for broader cues. A breakdown below $16.09 could trigger panic selling. Watch for regulatory updates or a rebound in gene therapy sentiment, but for now, short-side options like SRPT20250725P18.5 are the most compelling plays.