Viasat Surged 17.9%, Can This Satellite Tech Rally Sustain Momentum?

Summary
• Viasat (VSAT) trades at $19.55, surging 17.9% from $16.58 close
• Intraday high hits $19.975, low at $18.31 amid heavy turnover
• Sector peers like SES and EchoStar land $90M+ defense contracts
• Options frenzy: 20 contracts traded with 112.45% implied volatility
Viasat’s satellite communications sector is ablaze with defense contract news as SES and EchoStar secure multi-hundred million-dollar deals. With the stock trading near its 52-week high of $22.9 and dynamic PE at -4.57, traders are scrambling to decipher whether this 17.9% intraday surge is a short-term pop or the start of a new bull phase.

Defense Contract Hype Ignites Satellite Sector Rally
The surge is directly fueled by sector-wide defense procurement activity. SES won an $89.6M COMSATCOM contract for U.S. Army tactical networks, while EchoStar secured a $1.3B LEO constellation deal with MDA Space. These contracts validate the strategic value of satellite communications infrastructure, creating a ripple effect across the sector. Viasat’s own military-grade satellite services position it as a natural beneficiary of this defense spending boom, with traders extrapolating similar contract potential.

Bullish Setup with Gamma-Driven Options Playbook
• RSI: 63.67 (neutral to overbought)
• MACD: 0.63 (bullish) vs Signal Line 0.65
• 200D MA: $10.37 (far below current price)
• Bollinger Bands: $14.13–$16.52 (price far above)
• Turnover Rate: 2.67% (high liquidity)
The chart suggests a continuation of the 52-week high retest. Key support at $14.55–$14.63 and resistance at $22.9. With the sector enjoying defense contract tailwinds, aggressive bulls should target $22.9 before 52W high. The 17.9% move has created a gamma-driven options environment:
• VSAT20250815C19 (Call Option)
- Strike: $19 | Expiry: 2025-08-15 | IV: 117.78% | Delta: 0.57 | Theta: -0.10 | Gamma: 0.095 | Turnover: $92,362
- High gamma means sensitivity to price swings
- 175.38% price change ratio indicates strong momentum
- Projected 5% upside payoff: $0.48/share (max profit if price hits $20.53)
• VSAT20250815C20 (Call Option)
- Strike: $20 | Expiry: 2025-08-15 | IV: 103.39% | Delta: 0.46 | Theta: -0.087 | Gamma: 0.109 | Turnover: $52,813
- Moderate delta with high gamma for directional bets
- 228.57% price change ratio shows explosive potential
- Projected 5% upside payoff: $0.58/share (max profit if price hits $20.53)
Aggressive traders may consider VSAT20250815C20 into a breakout above $20.53. The 10.78% leverage ratio on the $19 call offers 1:10 gearing for risk-controlled positions.

Backtest Viasat Stock Performance
The backtest of VSAT's performance after an intraday surge of 18% indicates mixed results. While the stock experienced a positive change, the returns over various time frames were generally muted, with the 3-Day return being -0.41%, the 10-Day return being -0.44%, and the 30-Day return being -0.62%. The maximum return during the backtest period was only 0.92%, which occurred on day 56, suggesting that the stock lacked sustained momentum following the initial surge.

Break $20.53 to Validate Sector Momentum
The 17.9% intraday move is fueled by sector-wide defense contract euphoria rather than Viasat-specific news. With the 200D MA at $10.37 and 52W high at $22.9, the technical setup suggests continuation trading. The key resistance at $20.53 must hold to confirm this is more than a short-term pop. Tesla (TSLA) as sector leader is up 1.47%, showing satellite tech is part of a broader tech re-rating. Watch for a $20.53 close or the 200D MA crossover as definitive buy/no-buy signals.