C4 Therapeutics Surges 22% on Explosive Intraday Rally: What's Fueling the Momentum?

Summary
• C4 Therapeutics (CCCC) surges 22.32% to $3.0091, breaking above 52-week high of $7.22
• Intraday range spans $2.46 to $3.02, with turnover hitting 2.27M shares
• Technical signals show bullish crossover in moving averages and MACD divergence

C4 Therapeutics is experiencing its most volatile session in months, with a 22.32% intraday gain propelling shares to $3.0091. The move defies a weak biotech sector led by Amgen's -0.97% decline. With Bollinger Bands widening and RSI at 58.33, traders are scrambling to decipher whether this is a breakout or a short-lived spike.

Technical Bullishness and Liquidity Surge Drive CCCC's Volatility
The explosive move stems from a confluence of technical triggers and liquidity dynamics. The stock pierced above its 200-day MA ($2.737) and 30-day MA ($2.188), confirming a short-term bullish trend. MACD (0.1229) shows positive divergence while RSI (58.33) remains in neutral territory, suggesting momentum is intact. High implied volatility (134.13% for September 19 call options) indicates market anticipation of further swings. The $2.46 opening price aligned with a key support level from accumulated volume, triggering a cascade of buy orders as the stock tested resistance at $2.50.

Biotech Sector Mixed as C4 Therapeutics Defies Weakness
While C4 Therapeutics surges, the broader biotech sector remains under pressure. Sector leader Amgen (AMGN) declines 0.97% as investors digest mixed earnings and regulatory uncertainty. Peers like Nkarta (NKTX) and FATE Therapeutics trade flat to down, highlighting CCCC's divergence. The sector's -0.97% intraday change contrasts sharply with C4's 22.32% rally, suggesting this move is driven by specific technical factors rather than sector-wide optimism.

High-Leverage Call Options and ETF Positioning for C4's Volatility
• 200-day MA: $2.737 (below current price)
• RSI: 58.33 (neutral)
• Bollinger Bands: Upper $2.59, Middle $2.26, Lower $1.93
• MACD: 0.1229 (bullish divergence)

With CCCC trading at 22.32% above its 52-week low and 40% below its 52-week high, the stock is in a classic breakout pattern. The $2.32 support level from accumulated volume remains critical; a break below would invalidate the bullish case. For leveraged exposure, the CCCC20250919C3 call option (strike $3, exp 9/19) offers 6.53% leverage with 0.564 delta and 0.332 gamma, ideal for capitalizing on continued momentum. The CCCC20251017C3 (strike $3, exp 10/17) provides 4.03% leverage with 0.618 delta and 0.2008 gamma for a slightly longer-term play. Both options show strong liquidity (turnover 2365 and 1140 contracts) and implied volatility above 134%, reflecting market anticipation of further swings. A 5% upside scenario to $3.16 would yield 5.3% returns on the September 19 call and 4.8% on the October 17 contract. Aggressive bulls should target a $3.15 close to confirm the breakout, while tight stop-loss at $2.33 is essential to manage risk.

Backtest C4 Therapeutics Stock Performance
The backtest of C4 Therapeutics (CCCC) after a 22% intraday surge shows mixed results. While the stock experienced a positive maximum return of 0.16% on the date of the surge, the overall short-term performance was lackluster, with the 3-day return at -0.15% and the 10-day return at -0.63%. The 30-day return was also negative at -0.16%, indicating that the positive impact of the intraday surge was not sustained in the longer term. The win rates for the 3-day, 10-day, and 30-day periods were 46.46%, 43.84%, and 49.81%, respectively, suggesting that while there was a decent chance of positive returns in the short term, the actual returns fell short of expectations.

C4 Therapeutics at Inflection Point: Act on Key Levels Before Volatility Fades
The 22.32% intraday surge positions C4 Therapeutics at a critical juncture. With RSI in neutral territory and MACD showing bullish divergence, the technical case for continuation remains intact—provided $2.32 support holds. The biotech sector's weakness, led by Amgen's -0.97% decline, underscores the need for caution. Traders should prioritize the CCCC20250919C3 call option for high-leverage exposure to a potential $3.15 close. Watch for a breakdown below $2.32 to trigger a shift in sentiment, while a sustained move above $3.02 would validate the breakout pattern. Given the sector's mixed performance and C4's technical strength, this is a high-conviction trade for aggressive positioners.