SEI Investments Surges 5.13% Intraday: What's Fueling the Rally?

Summary
• SEI Investments (SEIC) surges 5.13% to $87.27, breaking above its 52-week high of $93.96
• Intraday range spans $82.88 to $87.685, with 489,609 shares traded
• Sector leader BlackRock (BLK) gains 3.89%, hinting at asset management sector momentum
• Technical indicators show mixed signals: short-term bearish trend clashes with long-term consolidation

SEI Investments has ignited a dramatic intraday rally, surging over 5% as traders grapple with conflicting technical signals. The stock’s sharp rebound from its 200-day moving average of $83.60 and proximity to its 52-week high suggest a pivotal moment for momentum traders. With the asset management sector showing relative strength, the move raises questions about whether this is a breakout or a volatile correction.

Technical Rebound Amid Short-Term Bearish Pressure
The 5.13% intraday surge in SEIC appears driven by a technical rebound off key support levels. The stock’s price has pierced above its 200-day moving average of $83.60 and is now testing the upper Bollinger Band at $85.92, suggesting a potential reversal in short-term bearish momentum. While the 52-week range remains intact, the MACD histogram’s negative value (-0.126) and RSI at 48.23 indicate a neutral-to-bullish shift. The absence of company-specific news points to algorithmic trading or position adjustments as the primary catalyst.

Asset Management Sector Gains Momentum as BlackRock Leads
The asset management sector is showing relative strength, with BlackRock (BLK) up 3.89% on the day. While SEIC’s rally is primarily technical, the sector’s broader performance suggests a thematic tailwind. BLK’s leadership underscores investor confidence in passive asset management strategies, which could indirectly benefit SEIC’s active management offerings. However, SEIC’s 5.13% move outpaces the sector’s average, indicating independent momentum.

Options Playbook: Leveraging Volatility in a Ranging Market
• Technical Indicators: 200-day MA: $83.60 (below); RSI: 48.23 (neutral); MACD: 0.52 (bullish bias)
• Key Levels: Watch $83.12 (middle Bollinger Band) and $85.92 (upper Bollinger Band) for directional clues
• Short-Term Outlook: A break above $87.685 could trigger a test of the 52-week high at $93.96, while a retest of $82.88 may reignite bearish pressure

Top Options Picks:
• SEIC20260116C85 (Call, $85 strike, Jan 16 expiry):
- Implied Volatility: 46.45% (moderate)
- LVR: 47.04% (high leverage)
- Delta: 0.6305 (moderate sensitivity)
- Theta: -0.2369 (rapid time decay)
- Gamma: 0.0515 (high sensitivity to price swings)
- Turnover: 0 (low liquidity)
- Why: High gamma and moderate delta position this call to capitalize on a breakout above $85.92. A 5% upside to $91.63 would yield a payoff of $6.63 per contract.

• SEIC20260116C90 (Call, $90 strike, Jan 16 expiry):
- Implied Volatility: 32.54% (low)
- LVR: 91.61% (extreme leverage)
- Delta: 0.3005 (low sensitivity)
- Theta: -0.1359 (moderate decay)
- Gamma: 0.0678 (high sensitivity)
- Turnover: 0 (no liquidity)
- Why: Despite low IV, the 91.61% leverage ratio makes this a high-risk/high-reward play. A 5% move to $91.63 would yield a $1.63 payoff, but liquidity constraints demand caution.

Trading View: Aggressive bulls may consider SEIC20260116C85 into a break above $85.92, while cash-secured puts could be explored near $82.88 for a mean-reversion trade.

Backtest SEI Investments Stock Performance
The question seems to be asking for a backtest of SEIC's performance after an intraday surge of at least 5% in 2022, with the implication of assessing the stock's subsequent performance up to the present day. However, the exact timing of this surge and the specific context in which it occurred are not clearly defined. Therefore, I will assume that the 5% surge occurred at some point during 2022 and was followed by the current date, which I will use to analyze the stock's performance.1. Assuming a 5% Surge in 2022: - If SEIC experienced a 5% intraday surge at some point in 2022, the stock's price would have increased from its previous level by at least 5%. - This increase could have been due to a variety of factors, including positive earnings reports, market sentiment, or company-specific news.2. Performance Up to the Present Day: - To evaluate the stock's performance after this surge, we would look at its current price relative to the price at the end of 2022. - If the current price is higher than the price at the end of 2022, it indicates that the stock has continued to perform well in the intervening months. - Conversely, if the current price is lower, it suggests that the stock may have experienced volatility or underperformance since the 2022 surge.3. Considerations: - It's important to consider the broader market conditions and any relevant news or events that may have impacted SEIC's performance. - Additionally, the company's financial health, including earnings reports and dividend payments, can also influence its stock price over time.4. Analyzing the Backtest: - To conduct a thorough backtest, one would need to examine SEIC's price charts and compare the stock's performance on the date of the 2022 surge with its current price. - This could involve using historical data and technical analysis tools to assess the stock's trend and volatility since the surge.In conclusion, to fully answer the question, it would be necessary to specify the exact date of the 5% surge in 2022 and then analyze SEIC's performance from that date up to the present day. This analysis would provide insights into the stock's short-term and long-term performance following the surge.

Breakout or Correction? Key Levels to Watch Now
SEI Investments’ 5.13% rally has created a critical juncture for momentum traders. While the short-term bearish trend remains intact, the stock’s proximity to its 52-week high and the sector’s strength suggest a potential reversal. Investors should monitor the $85.92 upper Bollinger Band and the 200-day MA at $83.60 as pivotal levels. With BlackRock (BLK) up 3.89%, the asset management sector’s broader momentum could provide a tailwind. Action Alert: Position for a breakout above $87.685 or a retest of $82.88, with options strategies favoring high-gamma calls if volatility persists.