Centessa Plunges 10.8% Amid Volatile Intraday Drama: What's Fueling the Selloff?

Summary
• Centessa (CNTA) trades at $15.3925, down 10.87% from its $17.27 previous close
• Intraday range spans $15.01–$17.68, with turnover surging to 2.37% of float
• Management to present at Morgan Stanley Healthcare Conference on September 9
• RSI at 52.2, MACD histogram negative, and 52W low at $9.60 loom as critical levels

Centessa’s dramatic intraday collapse has ignited market speculation, with the stock trading near its 52-week low. While the company announced a high-profile conference appearance, technical indicators and sector dynamics suggest a confluence of profit-taking and broader biotech sector jitters. Traders are now scrutinizing key support levels and options activity for clues about the next move.

Profit-Taking and Sector Weakness Trigger Sharp Decline
The selloff appears driven by a combination of short-term profit-taking following recent gains and a broader biotech sector correction. Despite Centessa’s management securing a prominent speaking slot at the Morgan Stanley Healthcare Conference, the market has discounted near-term catalysts. The stock’s 52-week low at $9.60 and negative MACD histogram (-0.15) signal bearish momentum. Additionally, the sector’s mixed performance—led by Amgen’s 1.34% decline—has amplified risk-off sentiment, with investors rotating out of speculative biotech plays into more defensive assets.

Biotech Sector Weakness Weighs on Centessa Amid AMGN's Decline
The biotech sector is under pressure, with Amgen (AMGN) down 1.34% as of 18:44 ET. While Centessa’s fundamental news remains neutral, the sector’s broader correction—driven by regulatory uncertainty and macroeconomic concerns—has spilled over to smaller-cap names. The sector’s recent focus on cardiovascular and neurodegenerative therapies (e.g., Novartis’ $5B Argo pact) has not translated into broad-based optimism, leaving CNTA vulnerable to cross-sector selling.

Options Playbook: Capitalizing on Volatility and Key Levels
• 200-day MA: $15.29 (near current price), 30D MA: $16.76 (resistance)
• RSI: 52.2 (neutral), MACD: 0.30 (bullish) vs. signal line 0.45 (bearish)
• Bollinger Bands: Upper $17.90, Middle $17.15, Lower $16.40 (current price near lower band)
• Support/Resistance: 30D $17.14–$17.19, 200D $16.87–$17.03

Traders should focus on key support at $15.00 and resistance at $17.15. The 200-day MA ($15.29) offers a critical psychological level to watch. For options, two contracts stand out:

• CNTA20250919P15 (Put, $15 strike, 9/19 expiry):
- IV: 173.46% (elevated volatility)
- Delta: -0.397 (moderate sensitivity)
- Theta: -0.0448 (moderate time decay)
- Gamma: 0.0669 (high sensitivity to price swings)
- Turnover: $6,835 (liquid)
- LVR: 7.51% (high leverage)
- Payoff at 5% downside: $0.375 (max(0, 15 - 14.62))
- This put offers asymmetric upside if the stock breaks below $15.00, leveraging high gamma and IV to amplify gains in a bearish scenario.

• CNTA20251017C15 (Call, $15 strike, 10/17 expiry):
- IV: 155.49% (moderate volatility)
- Delta: 0.629 (high sensitivity)
- Theta: -0.0412 (moderate time decay)
- Gamma: 0.0450 (moderate sensitivity)
- Turnover: $47,319 (high liquidity)
- LVR: 4.40% (moderate leverage)
- Payoff at 5% downside: $0 (max(0, 14.62 - 15))
- This call is ideal for a rebound trade, with high delta and liquidity to capitalize on a potential bounce above $17.15. However, its payoff is zero in a 5% downside scenario, making it a directional bet on a reversal.

Hook: If $15.00 breaks, CNTA20250919P15 offers asymmetric bearish exposure. Aggressive bulls may consider CNTA20251017C15 into a rebound above $17.15.

Backtest Centessa Stock Performance

Act Now: Centessa at Pivotal Crossroads—Watch $15.00 and AMGN’s Lead
Centessa’s 10.8% intraday drop has brought it perilously close to its 52-week low, with technical indicators and sector dynamics suggesting a critical juncture. The stock’s ability to hold above $15.00 will determine whether this is a buying opportunity or a deeper selloff. Traders should monitor the 200-day MA ($15.29) and sector leader Amgen (AMGN, -1.34%) for directional clues. A breakdown below $15.00 could trigger a cascade to $9.60, while a rebound above $17.15 may reignite short-term optimism. Action: Prioritize the CNTA20250919P15 put for downside protection and watch AMGN’s performance as a sector barometer.