EVgo Soars 8.66% on Intraday Surge: What's Fueling the Momentum?

Summary
• EVgo (EVGO) surges 8.66% to $4.1401, breaking above its 52-week low of $2.195
• Intraday high hits $4.335, with turnover of 6.6 million shares
• Sector news highlights July EV sales surge and expiring tax credits as potential catalysts

EVgo’s dramatic intraday rally has captured market attention, with the stock climbing nearly 9% in a single session. The move coincides with broader sector momentum driven by surging used EV sales and a looming tax credit deadline. As the stock tests key technical levels, traders are dissecting whether this is a short-term breakout or a sign of deeper sector strength.

Used EV Sales Surge and Tax Credit Deadline Drive EVgo's Intraday Rally
EVgo’s explosive 8.66% gain aligns with sector-wide enthusiasm for used EVs and expiring federal incentives. Cox Automotive’s July data revealed a 23.2% month-over-month spike in used EV sales, with Tesla dominating 43.4% of the market. The $4,000 used EV tax credit’s September 30 expiration has accelerated buyer urgency, while narrowing price gaps with ICE vehicles (now just $1,266) have made EVs more accessible. These dynamics, combined with EVgo’s strategic positioning in the charging infrastructure space, have ignited short-term speculative fervor.

EV Sector Gains Momentum as Tesla Trails EVgo's Intraday Gains
While EVgo’s 8.66% surge outpaces Tesla’s 1.32% intraday gain, the broader sector remains robust. July saw new EV sales rise 26.4% month-over-month, with Tesla, Chevrolet, and Hyundai leading. However, EVgo’s rally reflects investor focus on infrastructure enablers rather than automakers. The stock’s performance suggests market recognition of EV adoption tailwinds, even as automakers like Volkswagen experiment with hybrid powertrains to bridge the transition.

Options Playbook: Capitalizing on EVgo’s Volatility with Gamma-Driven Contracts
• MACD: 0.0268 (bullish divergence), Signal Line: -0.0171 (crossing up), RSI: 56.79 (neutral bias)
• Bollinger Bands: Price at 4.04 (upper band) vs. 3.23 (lower band), 200D MA: 3.9248 (resistance ahead)
• Key Levels: 3.4474 (30D support), 3.354 (200D support), 4.335 (intraday high)

EVgo’s short-term bullish momentum and elevated volatility (72.64–83.04% IV) create fertile ground for options strategies. Two contracts stand out:

• EVGO20250919C4 (Call, $4 strike, 9/19 expiry):
- IV: 68.20% (moderate)
- Leverage Ratio: 9.32%
- Delta: 0.6384 (moderate sensitivity)
- Theta: -0.0078 (aggressive time decay)
- Gamma: 0.4355 (high sensitivity to price swings)
- Turnover: 50,155 (liquid)
- Payoff at 5% upside (4.3471): $0.3471/share
- Why it works: High gamma and moderate delta position this call to capitalize on continued upward momentum while managing time decay risks.

• EVGO20251121C4.5 (Call, $4.5 strike, 11/21 expiry):
- IV: 78.16% (elevated)
- Leverage Ratio: 5.59%
- Delta: 0.5592 (balanced exposure)
- Theta: -0.0032 (moderate decay)
- Gamma: 0.1865 (modest sensitivity)
- Turnover: 21,882 (liquid)
- Payoff at 5% upside (4.3471): $0.1971/share
- Why it works: Longer-dated gamma exposure allows for gradual price appreciation while mitigating immediate time decay.

Aggressive bulls should consider EVGO20250919C4 into a break above $4.335, while conservative traders may favor EVGO20251121C4.5 for a measured play on sustained momentum.

Backtest EVgo Stock Performance
The backtest of EVGO's performance after a 9% intraday surge shows mixed results. While the stock experienced a maximum return of 3.05% on the 54th day following the event, the overall short-term performance was lackluster, with the 3-day win rate at 46.29% and the 10-day win rate at 46.07%. The 30-day win rate was slightly higher at 49.89%, indicating that longer-term investors had a better chance of benefiting from the intraday surge. However, the average returns over the 3, 10, and 30 days were negative or close to zero, suggesting that the 9% surge did not lead to sustained long-term gains.

Act Now: EVgo's Rally Shows Short-Term Bullish Momentum
EVgo’s 8.66% surge reflects a confluence of sector tailwinds and speculative positioning ahead of the 9/19 options expiry. With RSI at 56.79 and MACD divergence suggesting momentum, the stock is primed for a test of its 52-week high of $9.07—if it can sustain above $4.335. Traders should monitor Tesla’s 1.32% intraday gain as a sector barometer, while options players have clear entry points in the September and November contracts. For now, the message is clear: position for a breakout above $4.335 or tighten stops below $3.4474.