Ferrari Soars on Italian GP Hype and Bullish Technicals: Can This Rally Sustain Momentum?

Summary
• RACE surges 2.63% to $489.76, hitting a 52-week high of $490.145
• Intraday range spans $482.3–$490.145 amid heightened Formula 1 event-driven sentiment
• Technicals show RSI at 78.42 (overbought), MACD crossing above signal line, and price above all major moving averages

Ferrari’s stock is riding a wave of enthusiasm tied to its home Grand Prix in Monza and robust technical indicators. With the Italian GP spotlighting the brand’s heritage and a short-term bullish trend confirmed by key metrics, investors are weighing whether this momentum can translate into a sustained breakout. The stock’s 2.63% gain on the session reflects both event-driven optimism and a technical setup favoring continuation.

Italian Grand Prix Hype and Technical Momentum Drive RACE Higher
Ferrari’s rally is fueled by dual catalysts: the Italian Grand Prix’s emotional resonance with investors and a technical backdrop reinforcing bullish momentum. The company’s 50th-anniversary celebration of Niki Lauda’s 1975 title win has amplified brand visibility, while Lewis Hamilton’s recent struggles at Ferrari have sparked renewed interest in the team’s legacy. Technically, RACE’s price action above the 200-day moving average ($458.18), a MACD crossover above the signal line, and an RSI near overbought territory (78.42) suggest short-term strength. The stock’s surge aligns with a broader pattern of high-conviction traders capitalizing on event-driven narratives and technical continuation signals.

Options Playbook: Capitalizing on RACE’s Bullish Momentum
• Technical Indicators: 200-day average: $458.18 (below), RSI: 78.42 (overbought), MACD: -0.32 (bullish crossover), Bollinger Bands: Price at 485.63 (upper band)

Key Levels: Immediate resistance at $490.14 (intraday high), followed by $500.00. Support is at $482.30 (intraday low). The stock’s position above all major moving averages (30D: $471.07, 200D: $458.18) and a short-term bullish K-line pattern suggest continuation above $482.30 is likely. Aggressive bulls may consider RACE20250919C490 and RACE20250919C500 for leveraged exposure.

Top Options:
• RACE20250919C490 (Call, $490 strike, 9/19 expiry):
- IV: 23.68% (moderate)
- Delta: 0.510 (moderate sensitivity)
- Theta: -0.756 (high time decay)
- Gamma: 0.0155 (strong price sensitivity)
- Turnover: $184,003 (liquid)
- Leverage: 47.67% (high)
- Payoff (5% upside to $514.25): $24.25/share
- Why: High leverage and gamma make this ideal for a sharp move above $490.
• RACE20250919C500 (Call, $500 strike, 9/19 expiry):
- IV: 23.12% (moderate)
- Delta: 0.356 (moderate sensitivity)
- Theta: -0.592 (high time decay)
- Gamma: 0.0148 (strong price sensitivity)
- Turnover: $7,550 (liquid)
- Leverage: 82.91% (very high)
- Payoff (5% upside to $514.25): $14.25/share
- Why: Extreme leverage suits aggressive bulls targeting a $500+ breakout.

Action: For a 5% upside scenario, RACE20250919C490 offers a 4.9% return on a $490.00 strike, while RACE20250919C500 provides a 18.9% return. Both contracts benefit from high gamma and moderate IV, making them ideal for a continuation above $490.14.

Backtest Ferrari Stock Performance

Act Now: RACE’s Rally Gains Traction—Position for Breakout
Ferrari’s rally is poised to extend as long as the stock remains above $482.30 and the 200-day moving average. Key levels to watch include $490.14 (intraday high) and $500.00 (psychological threshold). The technical setup—overbought RSI, bullish MACD, and price above all moving averages—supports a continuation trade. Meanwhile, Tesla (TSLA), the sector leader, fell 1.68%, highlighting divergent momentum within the auto sector. Investors should prioritize RACE20250919C490 for a balanced leveraged play or RACE20250919C500 for aggressive upside potential. Watch for a close above $490.14 to confirm the breakout and initiate positions.