FIGR Soars 10.7% in Volatile Session: What's Fueling the Surge?

Summary
• FIGR surges 10.7% to $39.17, breaking above 52W high of $49.50
• Turnover spikes to 1.43M shares, 38% of float
• Options chain sees 467 contracts traded on 12/19 $40 call
• Bayside Corp's leadership reshuffle and urea electrosynthesis breakthroughs dominate news flow

Figure Technology Solutions (FIGR) is experiencing a dramatic intraday reversal as the stock surges 10.7% to $39.17, erasing a 12.5% gap down from its 52-week low. The move coincides with Bayside Corporation's strategic appointment of Aikane Kessler and emerging research on urea electrosynthesis, though direct links remain unclear. With the stock trading near its upper Bollinger Band and MACD signaling bearish divergence, traders are scrambling to decipher the catalyst.

Options Volatility and Sector Rotation Drive Momentum
The explosive 10.7% move in FIGR appears driven by a combination of options-driven speculation and sector rotation. The 12/19 $40 call option (FIGR20251219C40) has seen 467 contracts traded with 84,754 shares turnover, suggesting institutional positioning ahead of the December 19 expiration. While no direct company-specific news exists for FIGR, the broader market's reaction to Bayside Corp's leadership changes and the urea electrosynthesis breakthrough may be spilling over into related tech stocks. The stock's 30-day moving average at $37.96 and RSI at 46.1 indicate a potential overbought condition despite the sharp rally.

Internet Services Sector Mixed as AMZN Drags
The Internet Services sector (S&P 500 Internet Index) shows mixed momentum with Amazon (AMZN) down 1.82% despite FIGR's surge. This divergence suggests FIGR's move is more idiosyncratic than sector-driven. While AMZN's decline reflects broader retail concerns, FIGR's rally appears tied to options activity and speculative positioning rather than fundamental sector dynamics. The lack of correlated movement with sector leaders indicates this is a stock-specific event rather than a sector rotation.

Options Playbook: Capitalizing on Volatility and Gamma
• 30-day MA: $37.96 (below current price)
• RSI: 46.1 (neutral)
• MACD: -1.15 (bearish divergence)
• Bollinger Bands: $40.83 (upper), $36.63 (middle), $32.44 (lower)
• Support/Resistance: $35.26-$35.45 (30D support)

With FIGR trading near its upper Bollinger Band and MACD signaling bearish momentum, the setup favors short-term volatility plays. Two options stand out:

• FIGR20251219C40 (Call):
- Strike: $40
- Expiration: 12/19
- IV: 77.47% (high volatility)
- Delta: 0.48 (moderate directional bias)
- Gamma: 0.0628 (strong price sensitivity)
- Turnover: 84,754 shares
- Leverage: 17.88% (high gearing)
- Payoff at 5% upside: $0.98 per share
This contract offers optimal leverage with sufficient gamma to benefit from continued volatility. The high IV suggests market anticipation of further movement.

• FIGR20260116C40 (Call):
- Strike: $40
- Expiration: 1/16/26
- IV: 80.07% (elevated)
- Delta: 0.53 (balanced exposure)
- Gamma: 0.0365 (moderate sensitivity)
- Turnover: 167,344 shares
- Leverage: 9.67% (reasonable gearing)
- Payoff at 5% upside: $0.98 per share
This longer-dated option provides more time for the trade to develop while maintaining attractive leverage. The higher gamma compared to shorter-dated options makes it ideal for a continuation of the current volatility.

Aggressive bulls should consider FIGR20251219C40 for a short-term play, while FIGR20260116C40 offers a more conservative approach with extended time decay. Both contracts benefit from the current high IV environment and strong gamma characteristics.

Backtest FT Intermediate Stock Performance
To run an event-based back-test we first have to pin down two pieces of information:1. Ticker – you wrote “FIGR”. Could you confirm that FIGR is the exact ticker symbol you want analysed (for example, the scrubs-apparel company trades under FIGS, while “FIGR” is less common)?2. Definition of “11 % intraday surge” – there are two typical ways to express this: • Close-to-close move ≥ +11 % (today’s close vs. yesterday’s close) • High-vs-previous-close ≥ +11 % (today’s intraday high at least 11 % above yesterday’s close)Which definition would you like us to use? Once that’s clear I’ll pull the price data, extract the event dates, and run the event back-test from 1 Jan 2022 through today.

Positioning for the Next Move: Key Levels to Watch
The 10.7% surge in FIGR suggests a short-term reversal is underway, but technical indicators remain bearish with MACD divergence and RSI near neutral. Traders should monitor the $35.26 support level and the 30-day MA at $37.96 for directional clues. With Amazon (AMZN) down 1.82%, sector rotation remains a risk factor. The top options plays (FIGR20251219C40 and FIGR20260116C40) offer compelling leverage and gamma exposure for those betting on continued volatility. If the $35.26 support breaks, consider shorting the 12/19 $40 put (FIGR20251219P40) for a counter-position. Position sizing should reflect the high leverage ratios of these options.