CEP Surges 22% on Merger Approval: Is This the Start of a Bullish Run?

Summary
• Cantor Equity (CEP) surges 22.21% intraday to $14.47, breaking through $17.69 highs after shareholder approval of its merger with Twenty One Capital.
• The deal clears the path for Twenty One Capital to list on NYSE as XXI on December 9, 2025, with 43,514 BTC ($4B) in holdings.
• Technicals show RSI at 30.36 (oversold), MACD -1.66, and Bollinger Bands squeezing near $14.47.

Cantor Equity’s explosive move is fueled by the finalization of its merger with Bitcoin-focused Twenty One Capital, a deal that positions the combined entity as a trailblazer in crypto-linked equities. With the NYSE listing imminent, traders are scrambling to assess the stock’s short-term potential amid high implied volatility and a volatile technical backdrop.

Merger Approval Ignites Short-Term Frenzy
The 22.21% intraday surge in CEP is directly tied to the shareholder approval of its business combination with Twenty One Capital, a Bitcoin-native firm set to list as XXI on December 9. The merger, announced in April, has faced regulatory and market scrutiny, but the recent shareholder vote eliminates a key hurdle. The deal’s completion will see CEP shareholders exchange their stakes for XXI shares, while Twenty One Capital gains access to public markets. The stock’s sharp rebound from its 6-month low of $10.25 reflects optimism about the new entity’s Bitcoin exposure and institutional backing from Tether and SoftBank. However, the stock remains 66% below its April peak, suggesting lingering skepticism about execution risks and Bitcoin’s volatility.

Asset Management Sector Mixed as BlackRock Slides
The broader asset management sector shows mixed momentum, with BlackRock (BLK) down 0.11% despite CEP’s surge. While CEP’s rally is driven by a unique Bitcoin merger, sector peers like Voya and Lincoln Financial are focused on traditional wealth management and fixed-income strategies. The divergence highlights CEP’s speculative nature compared to established players. However, the sector’s overall underperformance—driven by macroeconomic concerns and regulatory pressures—limits the broader tailwind for CEP’s momentum.

Options and ETFs to Capitalize on CEP’s Volatility
• RSI: 30.36 (oversold)
• MACD: -1.66 (bearish), Signal Line: -1.61 (neutral)
• Bollinger Bands: Upper $17.82, Middle $14.47, Lower $11.12
• 200D MA: $23.12 (far above)
• RSI: 30.36 (oversold)

Cantor Equity’s technicals suggest a short-term rebound from oversold levels, but long-term bearish trends persist. Key support is at $11.12 (lower Bollinger Band), while resistance lies at $17.82 (upper band). The stock’s 22% intraday gain has pushed it closer to the 200D MA, but a sustained break above $17.82 would signal a shift in sentiment. Given the high implied volatility (IV) and liquidity in the options chain, aggressive traders may target leveraged call options for a short-term play.

Top Options Picks:
• CEP20251219C15 (Call, $15 strike, Dec 19 expiry):
- IV: 161.66% (extreme)
- Leverage Ratio: 8.47%
- Delta: 0.52 (moderate)
- Theta: -0.075 (high time decay)
- Gamma: 0.082 (high sensitivity)
- Turnover: $29,045
- Price Change Ratio: 209.09%
- Payoff (5% up to $15.20): $0.20 per contract
- Why: High gamma and IV make this call ideal for a short-term rally, with liquidity to enter/exit.

• CEP20260417C15 (Call, $15 strike, April 17 expiry):
- IV: 125.48% (high)
- Leverage Ratio: 3.47%
- Delta: 0.64 (moderate)
- Theta: -0.017 (low time decay)
- Gamma: 0.034 (moderate)
- Turnover: $146,415
- Price Change Ratio: 9.21%
- Payoff (5% up to $15.20): $0.20 per contract
- Why: Lower theta and higher turnover make this a safer long-term play if the rally extends beyond December.

Action: Aggressive bulls may consider CEP20251219C15 for a short-term pop above $15, while CEP20260417C15 offers a more conservative approach. Both contracts benefit from high IV and liquidity, but the Dec 19 call carries higher risk due to time decay.

Backtest Cantor Equity Stock Performance
To make sure the back-test matches exactly what you have in mind, could you help me confirm two small points?1. Ticker: “CEP” isn’t a widely traded U.S. symbol today. • Please confirm the exact ticker (e.g. stock exchange code) you’d like me to use. 2. Definition of “22 % intraday surge”: • Should we regard this as a day when the closing price is ≥ 22 % above the previous close (simple daily return ≥ +22 %)? • Or do you prefer an “intraday high vs. previous close” (or vs. same-day open) definition? Once I have these details I can pull the price series, extract the surge dates, and run the event-based back-test from 2022-01-01 to today.

CEP’s Merger-Driven Rally: A Short-Term Play or a New Era?
Cantor Equity’s 22% surge is a direct result of the merger’s shareholder approval, but the stock’s long-term bearish trends and high volatility suggest caution. The NYSE listing of XXI on December 9 could unlock new momentum, but Bitcoin’s price action and regulatory scrutiny remain wild cards. Traders should monitor the $17.82 upper Bollinger Band and the 200D MA at $23.12 as key levels. Meanwhile, BlackRock (BLK)’s 0.11% decline underscores the sector’s mixed outlook. For now, the CEP20251219C15 call offers the highest reward for a short-term rally, but position sizing should reflect the stock’s inherent risks. Watch for the December 9 listing and Bitcoin’s price action to gauge the next move.