Futu Holdings Surges 5.7% on Intraday Rally – What’s Fueling the Momentum?

Summary
• Futu Holdings (FUTU) surges 5.7% to $189.79, hitting a 52-week high of $190.48
• Institutional investor Yong Rong liquidates $59.1M stake in Q3
• BofA raises price target to $225 from $200, signaling bullish sentiment

Futu Holdings is trading at its highest level since October 2025, driven by a mix of institutional portfolio rebalancing and renewed analyst optimism. The stock’s 125.2% YTD surge has outpaced the S&P 500 by 110 percentage points, with recent price action suggesting momentum remains intact. Today’s intraday high of $190.48 and low of $177.96 highlight the stock’s volatility amid a broader fintech sector consolidation.

Price Target Hike and Institutional Profit-Taking Drive Volatility
Futu’s intraday rally is fueled by a combination of a price target upgrade to $225 by Bank of America and the liquidation of a $59.1 million stake by institutional investor Yong Rong (HK) Asset Management. The firm sold 478,200 shares in Q3, reducing its position from 14.3% to 0% of AUM. This exit, coupled with BofA’s revised target, signals confidence in Futu’s long-term growth despite short-term profit-taking. The stock’s 5.7% gain reflects a mix of algorithmic trading flows and retail investor enthusiasm for its digital brokerage platforms, particularly Moomoo’s recent expansion into Australia and Southeast Asia.

Options Playbook: Leveraging FUTU’s Volatility with Gamma-Driven Contracts
• MACD: 5.13 (Bullish), Signal Line: 2.85, Histogram: 2.28 (Momentum)
• RSI: 62.64 (Neutral), Bollinger Bands: $202.50 (Upper), $174.27 (Middle), $146.04 (Lower)
• 200D MA: $132.90 (Below Price), 30D MA: $173.94 (Support)

Futu’s technicals suggest a continuation of its bullish trend, with the 200-day moving average acting as a strong support. The RSI hovering near 60 indicates no immediate overbought conditions, while the MACD histogram’s expansion signals growing momentum. Traders should monitor the $174.27 middle Bollinger Band as a key re-entry level. The Leverage Shares 2X Long FUTU ETF (if available) could amplify exposure, though its absence underscores the need for direct options plays.

Top Options Contracts:
• FUTU20251114C190 (Call, $190 strike, Nov 14 expiry):
- IV: 51.44% (Moderate), Leverage: 27.45%, Delta: 0.54, Theta: -0.603, Gamma: 0.0244, Turnover: 22,876
- IV reflects market uncertainty, Delta balances directional risk, Gamma ensures sensitivity to price swings, and high turnover ensures liquidity.
- Payoff: At a 5% upside (target $199.28), this call would yield ~$9.28 per contract. Ideal for capitalizing on a breakout above $190.

• FUTU20251114C197.5 (Call, $197.5 strike, Nov 14 expiry):
- IV: 55.40% (High), Leverage: 44.37%, Delta: 0.37, Theta: -0.528, Gamma: 0.0216, Turnover: 2,269
- High leverage and moderate IV make this contract a speculative play for aggressive bulls. Gamma ensures responsiveness to volatility, while Theta indicates rapid time decay—suitable for short-term bets.
- Payoff: A 5% upside (target $200.23) would net ~$2.73 per contract. Best for those expecting a sharp rally post-earnings on Nov 18.

Action: Aggressive bulls should prioritize FUTU20251114C190 for a defined-risk breakout trade, while FUTU20251114C197.5 offers high-reward potential for a post-earnings pop. Watch for a close above $190 to confirm the trend.

Backtest Futu Holdings Stock Performance
Key take-aways• Sample size: 77 trading days on which FUTU closed ≥ +6 % (01 Jan 2022 – 05 Nov 2025). • Short-term momentum: During the first week the stock tends to keep rising. A 5-day holding window delivered an average +4.07 % vs just +1.33 % for buy-and-hold, with a 66 % win-rate and statistically significant outperformance. • Momentum fades: After ~10 trading days the excess return over the benchmark vanishes; by 30 days the strategy lags the benchmark, suggesting gains are typically front-loaded. • Practical implication: A tactical trade that buys FUTU at the next open after a ≥ 6 % up-day and exits within ~5–8 trading days has historically added value. Beyond that horizon, mean-reversion risk rises. • Risk control: If you implement this as a real strategy, consider (1) a time-based exit around 5–8 trading days, (2) a stop-loss (e.g., −5 %) to mitigate the ~34 % losing events, and (3) position-sizing to manage gaps.Interactive resultBelow is an embedded module where you can explore the full event-study statistics, equity curve, distribution of returns, and optimal holding-period analysis.You can scroll / filter within the module to inspect performance by horizon, cumulative P&L, and per-event details.Methodology recap (auto-filled parameters)1. Price data: Used FUTU daily closes from 2022-01-01 to 2025-11-05 (latest available). 2. Event definition: Trading days where daily % change ≥ +6 % (close-to-close). 3. Backtest horizon: 30 trading days after each event, benchmarked against buy-and-hold performance over the same window. 4. Statistics: Win-rate, average event return, benchmark return, and significance computed per holding day.Feel free to ask if you’d like deeper cuts (e.g., filtering by market regimes, adding intraday exits, or testing alternative thresholds).

Futu’s Momentum Intact – Key Levels to Watch Before Earnings
Futu Holdings’ 5.7% intraday surge underscores its resilience amid a volatile market, driven by analyst upgrades and institutional profit-taking. The stock’s technicals and options activity suggest a continuation of the bullish trend, with the $190 level acting as a critical psychological threshold. Investors should monitor the Nov 18 earnings report for catalysts, as well as the $174.27 Bollinger Band support. For context, sector leader Charles Schwab (SCHW) is trading flat at 0.01%, highlighting Futu’s outperformance. Act now: Buy FUTU20251114C190 for a defined-risk breakout or short FUTU20251114P195 if the $190 level fails to hold.