WEX Skyrocketed 9.17%—What Strategic Moves Sparked This Bullish Surge?

Summary
• WEX’s stock surged 9.17% to $178.38, hitting an intraday high of $180.71
• Q2 adjusted EPS of $3.95 beat estimates, with full-year guidance raised to $15.37–$15.77/share
• New partnership with bp expands fuel card acceptance to 8,000+ U.S. stations
• Turnover spiked 2.03% as bulls capitalize on margin expansion and strategic growth

WEX’s explosive rally reflects a perfect storm of earnings outperformance, margin resilience, and strategic expansion. With adjusted operating income margins at 36.8% and a bullish partnership with bp, the stock’s 9.17% surge underscores investor confidence in its fintech-driven fleet solutions. Key levels to watch include the 200-day MA at $161.21 and the 52-week high of $217.47.

Q2 Earnings Beat and Strategic Partnerships Drive WEX's Rally
WEX’s 9.17% surge stems from a combination of Q2 financial outperformance and strategic momentum. Adjusted EPS of $3.95 (up 1% YoY) and revenue of $659.6M (top end of guidance) signaled strong operating leverage, despite a $15.9M fuel price headwind. The new partnership with bp, expanding earnify™ fleet card access to 8,000+ U.S. stations, amplified optimism about recurring revenue streams. Management’s confidence in a $3.23/gal fuel price assumption and 25% tax rate further solidified long-term growth expectations.

Merchant Services Sector Rally: WEX Outpaces Sector Leader PayPal
The Merchant Services sector saw mixed momentum, with PayPal (PYPL) up 1.81% on improved digital payments data. However, WEX’s 9.17% gain outperformed peers, driven by its 36.8% adjusted operating margin and strategic differentiation in fleet fueling. Unlike PYPL’s broader e-commerce focus, WEX’s niche in B2B mobility and corporate payments, bolstered by the bp partnership, created a unique value proposition. The stock’s 21.88x dynamic P/E also highlights undervaluation relative to sector averages.

Options Playbook: Leveraging WEX's Bullish Momentum
• MACD (4.34) > Signal Line (3.65): Bullish crossover
• RSI (68.6) near overbought threshold, suggesting short-term continuation
• 200-day MA at $161.21 (below current price); 52W high at $217.47 as key resistance
• Sector ETF: NO ETF data (use WEX20250815C170 for leveraged exposure)

Top Options:
• WEX20250815C170: Call, $170 strike, Aug 15 exp
- IV: 17.34% (moderate), Leverage: 18.62%, Delta: 0.89 (high), Theta: -0.318 (accelerating decay), Gamma: 0.024 (sensitive to price)
- Payoff at 5% upside ($187.2984): $17.2984/share
- High leverage and gamma make this ideal for aggressive bulls expecting a breakout
• WEX20250815C185: Call, $185 strike, Aug 15 exp
- IV: 25.19% (reasonable), Leverage: 79.08%, Delta: 0.319 (moderate), Theta: -0.192 (decaying), Gamma: 0.0316 (responsive)
- Payoff at 5% upside: $7.2984/share
- Balances risk and reward for traders targeting a 200-day MA break

Aggressive bulls should consider WEX20250815C170 into a test of $180.71 (intraday high). Positioning for a $170–$185 range suggests a 10–20% return potential on the call options, with a stop-loss at $165.08 (intraday low).

Backtest WEX Stock Performance
The 9% intraday surge in WEX has historically led to positive short-to-medium-term gains. The backtest data shows that following such a surge:1. Short-Term Gains: The 3-day win rate is 56.29%, indicating that over half of the time, the stock continues to rise in the three days following the surge.2. Medium-Term Gains: The 10-day win rate is 58.06%, suggesting a higher probability of continued growth in the ten days after the surge.3. Maximum Return: The maximum return observed following the surge is 0.99%, which occurs on day 58, indicating that there is potential for significant gains if held for a sufficient period.In conclusion, while there is some volatility in the immediate aftermath of the surge, historically, WEX has shown a tendency to continue rising in the days and weeks following a significant intraday gain, making it a potentially favorable entry point for investors looking for short-to-medium-term gains.

Rally Intact: Capitalize on WEX's Momentum Before August Expiry
WEX’s 9.17% rally shows no signs of slowing, with technicals and fundamentals aligning for a breakout. The 36.8% adjusted margin and bp partnership provide durable tailwinds, while the 21.88x P/E suggests undervaluation. Hold long positions into the 200-day MA test at $161.21, and consider WEX20250815C170 for leveraged exposure. Sector leader PayPal (up 1.81%) offers a benchmark, but WEX’s niche in fleet solutions gives it superior upside. Watch the 52-week high of $217.47 as a critical inflection point.