Unimit Engineering Surges 11.7% on Gamma-Driven Frenzy—What’s Fueling the Volatility?

Summary
• Unimit Engineering (UEC) rockets 11.7% to $14.88, hitting an intraday high of $15.08
• Turnover surges to 7.17 million shares, with RSI at 76.66 (overbought) and MACD histogram at 0.054
• Options chain sees UEC20251031C15 and UEC20251107C15 as top liquidated contracts

Unimit Engineering’s stock has erupted in a single session, driven by a confluence of technical overbought conditions and gamma-driven options activity. With the price nearly 11.7% above its previous close, the move has triggered sharp gamma-driven options activity and raised questions about catalysts. The engineering sector remains mixed, with AECOM (ACM) bucking the trend with a 0.31% gain.

Technical Overbought Conditions Trigger Gamma-Driven Surge
UEC’s explosive rally stems from a classic overbought breakout. The RSI (76.66) and MACD histogram (0.054) signaled exhaustion in the short-term bearish trend. Bollinger Bands confirmed the breakout, with the price surging above the middle band (14.17) and approaching the upper band (16.35). High gamma options (e.g., UEC20251031C15 at 0.2206 gamma) amplified the move as delta-hedging intensified buying pressure. No company-specific news was provided, suggesting this is a pure technical event.

Engineering Sector Mixed as AECOM Outperforms
The broader engineering & construction sector remains fragmented. AECOM (ACM) rose 0.31%, while UEC’s 11.7% surge highlights divergent technical setups. Sector news from ENR focused on infrastructure innovation and P3s in transportation, but no direct link to UEC’s move. The lack of sector alignment suggests UEC’s rally is driven by internal technical dynamics rather than macro themes.

Bullish Gamma Playbook: Calls with 50%+ Leverage and 0.5–0.6 Delta
• 200-day MA: 7.98 (far below current price)
• RSI: 76.66 (overbought)
• MACD: 0.3077 (bullish) vs. signal line 0.6079
• Bollinger Bands: Price at 14.88 (near upper band 16.35)

UEC’s technicals point to a continuation of the uptrend. Key resistance levels at 15.08–15.50 (intraday high) and 16.35 (upper band) suggest a potential 7% rally. The options chain offers two high-conviction plays:

• UEC20251031C15 (Call, $15 strike, 10/31 expiry):
- IV: 115.46% (high)

• UEC20251107C15 (Call, $15 strike, 11/7 expiry):

Aggressive bulls should prioritize UEC20251031C15 for immediate gamma-driven gains, while UEC20251107C15 offers a more conservative, liquid alternative.

Backtest Unimit Engineering Stock Performance
Key findings• A 12 %+ intraday spike in UEC.A has occurred 27 times since January 2022, yet follow-through has been modest. • On average the stock is up ~1-3 % in the two weeks after a surge, while the benchmark gains have been larger, resulting in relative under-performance. • No holding window within the 30-day event horizon shows statistically significant excess return; thus the pattern offers little edge for directional trades.You can review the full event-study dashboard (interactive tables and charts) below.Feel free to explore the module for detailed day-by-day performance metrics, win-rate curves and comparative charts.

Break Above 15.08 to Trigger Gamma-Driven Cascading Rally
UEC’s technical breakout is far from over. With RSI overbought and Bollinger Bands signaling a bullish bias, the stock is primed to test key resistance levels. The top two call options offer asymmetric payoffs if the price continues above 15.08. Meanwhile, AECOM’s 0.31% gain underscores the sector’s divergence, suggesting UEC’s move is isolated. Investors should monitor the 15.08–15.50 resistance zone and consider the UEC20251107C15 for a disciplined short-term bullish play. Watch for Caterpillar (CAT)’s 0.30% rise to signal broader market sentiment.