Harrow (HROW) Surges 10.4% on Relative Strength Upgrade: What’s Fueling This Rally?

Summary
• Harrow (HROW) surges 10.4% intraday to $40.30, breaking above its 52-week high of $59.23
• Turnover jumps to 828,774 shares, 2.69% of its average daily volume
• Relative Strength Rating upgrades from 64 to 79, signaling improved technical performance
• Kline pattern indicates short-term bullish momentum amid long-term ranging

Harrow’s (HROW) 10.4% intraday rally has ignited investor curiosity, driven by a Relative Strength Rating upgrade and technical indicators pointing to short-term bullish momentum. With turnover surging and the stock trading near its 52-week high, the move reflects renewed institutional and retail interest. The Drug Manufacturers - Specialty & Generic sector remains mixed, but HROW’s standalone performance suggests a catalyst beyond sector dynamics.

Relative Strength Rating Upgrade Ignites Harrow’s Intraday Rally
Harrow’s (HROW) 10.4% surge is directly tied to its Relative Strength (RS) Rating upgrade from 64 to 79, a metric that evaluates a stock’s 52-week technical performance against peers. This improvement signals stronger relative momentum, attracting algorithmic and discretionary traders seeking outperforming assets. The upgrade coincided with elevated volume (828,774 shares) and a Kline pattern indicating a short-term bullish trend. Additionally, the MACD (0.50) and RSI (47.28) suggest the stock is gaining momentum without entering overbought territory, reinforcing the case for a continuation of the rally.

Options Playbook: Leveraging HROW’s Bullish Momentum with Strategic Contracts
• 200-day average: 32.31 (below current price)
• RSI: 47.28 (neutral to bullish)
• MACD: 0.50 (bullish crossover)
• Kline pattern: Short-term bullish trend
• Bollinger Bands: Price at 38.28 (upper band), 34.66 (middle), 31.05 (lower)

HROW’s technicals suggest a continuation of the rally, with key support at $34.66 (middle Bollinger Band) and resistance at $38.28 (upper band). The stock’s 10.4% move has triggered high-liquidity options contracts, making them viable for directional plays. Two top options from the chain are:

• HROW20250919C40 (Call, $40 strike, 2025-09-19 expiration):
- IV: 53.48% (moderate)
- Leverage ratio: 13.46%
- Delta: 0.565 (moderate sensitivity)
- Theta: -0.059 (high time decay)
- Gamma: 0.057 (high sensitivity to price changes)
- Turnover: 42,946 (high liquidity)
- Payoff at 5% upside: $0.30/share (max(0, 42.32 - 40))
- Why it stands out: High gamma and moderate delta make it ideal for a continuation of the rally, with strong liquidity for entry/exit.

• HROW20250919C42 (Call, $42 strike, 2025-09-19 expiration):
- IV: 49.10% (moderate)
- Leverage ratio: 21.25%
- Delta: 0.441 (moderate sensitivity)
- Theta: -0.052 (high time decay)
- Gamma: 0.063 (high sensitivity to price changes)
- Turnover: 48,944 (high liquidity)
- Payoff at 5% upside: $0.30/share (max(0, 42.32 - 42))
- Why it stands out: Higher leverage ratio and gamma offer amplified returns if the rally persists, with sufficient liquidity to manage risk.

Aggressive bulls may consider HROW20250919C40 into a bounce above $38.28.

Backtest Harrow Stock Performance
The backtest of HROW's performance after a 10% intraday surge shows mixed results. While the 3-day win rate is 50.95%, the 10-day win rate is slightly lower at 50.43%. The strategy's effectiveness appears to depend on the duration of the holding period, as the 30-day win rate is higher at 58.86%. The maximum return during the backtest was 14.01%, which occurred on day 59, indicating that while there is a good chance of positive returns, the strategy can be volatile.

Act Now: HROW’s Rally Gains Momentum—Position for Next Move
HROW’s 10.4% intraday surge, fueled by a Relative Strength Rating upgrade and bullish technicals, suggests the rally is not a one-day anomaly. The stock’s Kline pattern and MACD crossover indicate a potential continuation of the move, with key resistance at $38.28 and support at $34.66. Investors should monitor the 200-day average ($32.31) as a critical level for trend confirmation. Meanwhile, sector leader Bausch Health (BHC) is up 4.88%, signaling broader market confidence in the sector. For those seeking leverage, the HROW20250919C40 and C42 calls offer high-gamma exposure to a potential breakout. Watch for a close above $38.28 or a breakdown below $34.66 to confirm the next directional move.