Coherent (COHR) Surges 5.7% on Intraday Rally: What's Fueling the Momentum?

Summary
• Coherent (COHR) rockets 5.68% to $95.86, piercing $95.93 intraday high
• Turnover surges to 3.28M shares, 2.62% of float traded
• RSI at 24.79 signals oversold rebound potential
• Options frenzy: 2025-09-19 95C sees 293K turnover, 92.62% price change

Coherent’s explosive intraday move has ignited market attention, with the stock surging 5.68% from $91.00 open to $95.86. The rally coincides with a dramatic shift in options activity, particularly in the 95-strike call options. With RSI at oversold levels and MACD divergence suggesting momentum reversal, traders are scrambling to decode the catalyst behind this sharp reversal.

Technical Rebound Triggers Volatility Surge
The 5.68% intraday rally stems from a classic technical rebound pattern. Coherent’s price had been trading below its 30D MA (100.50) and 200D MA (86.23) for weeks, creating a bearish bias. However, the RSI (24.79) hitting oversold territory and the MACD histogram (-1.82) showing extreme bearish divergence triggered algorithmic buying. The move coincided with heavy call option buying at the 95-strike, where 762 contracts traded with 92.62% price change, indicating institutional conviction in a short-term reversal.

Scientific & Technical Instruments Sector Mixed as LITE Leads
The Scientific & Technical Instruments sector saw mixed performance, with Lumentum Holdings (LITE) surging 7.79% on the back of AI-driven demand. While COHR’s rally appears technically driven, the sector’s broader momentum suggests thematic tailwinds for photonics and laser technology. However, COHR’s move lacks direct sector linkage, as its options activity reflects speculative positioning rather than fundamental catalysts.

High-Leverage Call Options Outperform as Technicals Align
• 200D MA: 86.23 (below) | RSI: 24.79 (oversold) | MACD: -2.65 (bearish) | Bollinger Bands: 77.92–122.32
• 30D Support: 90.15–90.75 | 200D Resistance: 99.41–100.72
• Options liquidity: 2025-09-19 chain with 40.86%–43.79% IV

Coherent’s technicals present a high-conviction short-term trade. The RSI at 24.79 suggests a strong oversold rebound, while the MACD histogram (-1.82) indicates exhausted bearish momentum. Key levels to watch include the 200D MA (86.23) as support and 200D resistance (99.41–100.72) as a critical breakout threshold. Two options stand out for aggressive positioning:

• COHR20250919C95 (Call, $95 strike, 2025-09-19):
- IV: 40.86% (moderate) – Reflects market uncertainty
- Leverage: 21.31% (high) – Amplifies price swings
- Delta: 0.567 (moderate) – Balances directional risk
- Theta: -0.176 (high time decay) – Encourages rapid movement
- Gamma: 0.039985 (high sensitivity) – Reacts to price acceleration
- Turnover: 296,483 (liquid) – Ensures trade execution
This contract offers optimal leverage with strong gamma to capitalize on price acceleration. A 5% upside to $100.66 would yield max profit of $5.66/share.

• COHR20250919C100 (Call, $100 strike, 2025-09-19):
- IV: 41.73% (moderate) – Reflects market uncertainty
- Leverage: 39.14% (very high) – Amplifies price swings
- Delta: 0.3736 (moderate) – Balances directional risk
- Theta: -0.1442 (high time decay) – Encourages rapid movement
- Gamma: 0.0377 (high sensitivity) – Reacts to price acceleration
- Turnover: 50,941 (liquid) – Ensures trade execution
This high-leverage option benefits from strong gamma and moderate delta, ideal for a breakout above $100.72 resistance. A 5% move would generate $10.66/share profit.

Aggressive bulls should consider COHR20250919C95 into a breakout above $99.41 or COHR20250919C100 if the 200D MA holds as support.

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Breakout or False Dawn? Key Levels to Watch Now
Coherent’s 5.68% surge reflects a technical rebound rather than fundamental catalysts, with RSI at oversold levels and heavy call option buying driving momentum. The critical juncture lies in whether the stock can close above the 200D resistance (99.41–100.72) to validate the reversal. While Lumentum (LITE) remains the sector leader with 7.79% intraday gains, COHR’s options activity suggests stronger conviction. Traders should monitor the 95-strike call options for liquidity and the 200D MA as a key support level. If the $99.41 resistance breaks, position sizing in high-gamma options like COHR20250919C95 becomes critical.