Crinetics Soars 27.5% on FDA Approval of Palsonify for Acromegaly – What’s Next for This Biotech Breakout?

Summary
• FDA approves CRNX’s Palsonify for acromegaly, first oral treatment in the U.S.
• CRNX surges 27.5% to $45.76, hitting an intraday high of $46.49.
• Turnover jumps to 8.3 million shares, with a 9.56% turnover rate.

Crinetics Pharmaceuticals (CRNX) is experiencing a historic rally following the U.S. Food and Drug Administration’s (FDA) approval of Palsonify for acromegaly. The stock’s 27.5% intraday surge reflects investor optimism over the drug’s commercial potential and the company’s pipeline. With a 52-week high of $62.53 still in reach, the market is now weighing the sustainability of this momentum against technical indicators and options activity.

FDA Approval Catalyzes CRNX Surge
The FDA’s approval of Palsonify as the first oral treatment for acromegaly has ignited a buying frenzy in CRNX. The drug, a SST2 agonist, demonstrated rapid biochemical control and durable symptom reduction in Phase 3 trials, with no serious adverse events reported. This regulatory milestone, coupled with the drug’s expected U.S. availability in early October and an EU approval timeline in H1 2026, has positioned Crinetics as a key player in a rare disease market with limited treatment options. The approval also validates the company’s pipeline, including atumelnant for congenital adrenal hyperplasia and paltusotine for carcinoid syndrome, fueling investor confidence.

Options Playbook: Leveraging CRNX’s Volatility with High-Gamma Contracts
• 200-day MA: $34.98 (below current price); RSI: 51.16 (neutral); MACD: 1.09 (bullish divergence).
• Bollinger Bands: CRNX trading near upper band ($37.25), suggesting overbought conditions.
• K-line pattern: Short-term bullish engulfing candle, long-term ranging.

CRNX’s technicals and options data suggest a continuation of the rally, with key support at $31.34 (lower Bollinger) and resistance at $46.49 (intraday high). The stock’s 9.56% turnover rate and 27.5% price surge indicate strong short-term momentum. For traders, the focus is on high-gamma, high-liquidity options to capitalize on volatility. Two top picks from the options chain are:

• CRNX20251017C45 (Call, $45 strike, Oct 17 expiry):
- IV: 58.19% (mid-range, reasonable)
- LVR: 14.38% (high leverage)
- Delta: 0.5977 (moderate sensitivity)
- Theta: -0.1040 (rapid time decay)
- Gamma: 0.0588 (high sensitivity to price swings)
- Turnover: 156,806 (liquid)
- Payoff (5% upside): $0.76 per share (45.76 → 48.05 → max(0, 48.05 - 45) = 3.05).
- This contract offers a balance of leverage and liquidity, ideal for riding the post-approval euphoria.

• CRNX20251017C50 (Call, $50 strike, Oct 17 expiry):
- IV: 59.26% (mid-range)
- LVR: 36.24% (extreme leverage)
- Delta: 0.3161 (low sensitivity)
- Theta: -0.0794 (moderate decay)
- Gamma: 0.0531 (high sensitivity)
- Turnover: 152,714 (liquid)
- Payoff (5% upside): $0.05 per share (45.76 → 48.05 → max(0, 48.05 - 50) = 0).
- While the $50 strike is out-of-the-money, its 36% leverage ratio makes it a speculative play for aggressive bulls expecting a breakout above $50.

Action Alert: Aggressive bulls may consider CRNX20251017C45 into a bounce above $45. A breakdown below $41 (lower Bollinger) could trigger a retest of the 200-day MA at $34.98.

Backtest Crinetics Stock Performance
Based on your criteria—buying Crinetics (CRNX) whenever it posts an intraday close-to-close gain of at least 28 percent (since 2022) and exiting via 12 % take-profit, 8 % stop-loss, a 30-day maximum holding window, or a 20 % drawdown—the historical back-test produced a cumulative loss of 8.37 % (annualized ≈ -2.24 %), with a maximum drawdown equal to that loss. No individual trade reached the take-profit threshold; every position closed at a loss or via the time stop.Key observations• The surge event was extremely rare—only one qualifying signal appeared in the full sample. • Because the post-surge drift was negative, all four risk controls triggered at the same level, producing the same outcome. • Sharpe ratio (-0.42) confirms risk-adjusted under-performance relative to cash. For a concise visual report, see the module below.Feel free to explore the interactive chart and tables embedded in the module for deeper insight.

CRNX’s FDA Win Ignites Momentum – Watch $45.76 Support and EU Approval Timeline
Crinetics’ FDA approval has catalyzed a 27.5% surge, but the stock remains 27% below its 52-week high of $62.53. Technicals suggest a continuation of the rally if CRNX holds above $41 (lower Bollinger) and $34.98 (200-day MA). The options market’s focus on high-gamma contracts like CRNX20251017C45 underscores the potential for further gains, particularly if the EU approval timeline in H1 2026 progresses smoothly. Meanwhile, the sector leader Pfizer (PFE) is up 0.49%, indicating broader pharma sector stability. Investors should monitor CRNX’s ability to sustain volume above 8 million shares and watch for a breakdown below $41, which could signal a reentry opportunity. Takeaway: Hold long positions above $41; consider short-term options plays for volatility.