ePlus (PLUS) Surges 11.72% on Intraday Rally Amid Sector Volatility – What’s Fueling the Momentum?

Summary
• ePlus (PLUS) surges 11.72% to $70.72, breaking above its 52-week high of $106.98
• Intraday range spans $67.12 to $70.91, with 328,574 shares traded
• IT Services sector buzzes with AI and cybersecurity news, but sector leader IBM declines 2.25%
• Technical indicators signal bearish momentum, yet PLUS defies trend with sharp rally

Today’s explosive move in ePlus (PLUS) has ignited speculation about catalysts behind its 11.72% intraday surge. While the IT Services sector grapples with mixed signals from AI advancements and cybersecurity threats, PLUS’s price action suggests a disconnect from broader sector dynamics. Traders are now parsing technicals and options data to gauge sustainability of the rally.

Bullish Breakout Amid Bearish Technicals
ePlus’s 11.72% surge defies its bearish technical profile, marked by a short-term bearish trend and a bearish engulfing candlestick pattern. The move coincides with heightened volatility in the IT Services sector, driven by AI innovation news and cybersecurity vulnerabilities. However, the stock’s performance is not directly tied to sector peers like IBM (-2.25%), suggesting a more idiosyncratic catalyst. The sharp rally may reflect short-covering or speculative positioning ahead of the August 15 options expiration, as evidenced by the PLUS20250815P70 put option’s 46.81% price decline.

IT Services Sector Volatility Amid AI and Cybersecurity Developments
The IT Services sector remains fragmented, with mixed signals from AI advancements and cybersecurity threats. While ePlus surges, sector leader IBM declines 2.25%, highlighting divergent investor sentiment. The sector’s broader narrative centers on AI-driven innovation and cybersecurity risks, but ePlus’s move appears more tied to its own technical dynamics and speculative options activity than sector-wide trends.

Options Playbook: Leveraging Volatility in a Bearish Setup
• 200-day MA: 72.33 (above) • RSI: 33.14 (oversold) • MACD: -1.719 (bearish) • Bollinger Bands: 71.48 (upper), 66.75 (middle), 62.02 (lower)

PLUS’s technicals paint a bearish picture, with price below its 200-day MA and RSI in oversold territory. However, the sharp intraday rally suggests potential short-term volatility. Traders should monitor key levels: 67.09 (30D support), 63.53 (200D support), and 71.48 (Bollinger upper band).

Top Options Picks:
• PLUS20250815P70 (Put): 70 strike, 8/15 expiry, IV 76.11%, leverage 28.56%, delta -0.4055, theta -0.0286, gamma 0.048199, turnover 250
• PLUS20251219C70 (Call): 70 strike, 12/19 expiry, IV 24.49%, leverage 12.98%, delta 0.6222, theta -0.0273, gamma 0.035874, turnover 1100

The PLUS20250815P70 put offers high leverage (28.56%) and gamma (0.048199), ideal for capitalizing on a potential reversal below $70. The PLUS20251219C70 call, with moderate delta (0.6222) and high gamma (0.035874), suits bullish bets if the rally sustains. Under a 5% upside scenario (target $74.26), the call’s payoff would be $4.26 per contract, while the put’s payoff would be $0.24. Aggressive traders may consider the put for short-term volatility, while longer-term bulls should eye the call into a break above 71.48.

Backtest ePlus Stock Performance
Plus Therapeutics Inc (PSTV) is expected to report a loss of 9 cents per share and a 16.2% increase in revenue to $1.486 million for the period ending June 30, 2025. However, the stock's performance after a 12% intraday surge is uncertain and would depend on various factors such as market conditions, investor sentiment, and company-specific developments.

Positioning for a Volatile Finish: Key Levels to Watch
ePlus’s 11.72% surge has created a volatile setup, with technicals pointing to bearish exhaustion but options data hinting at speculative fervor. The stock’s ability to hold above 67.09 (30D support) will determine near-term direction. Sector leader IBM’s 2.25% decline underscores the need for caution. Traders should prioritize the PLUS20250815P70 put for short-term volatility and the PLUS20251219C70 call for a bullish breakout. Watch for a breakdown below 63.53 (200D support) or a sustained rally above 71.48 (Bollinger upper band) to confirm the next move.