ImmunityBio Surges 19% on Breakthrough Data—What’s Fueling the Biotech Rally?

Summary
• ImmunityBio (IBRX) rockets 19.11% intraday to $4.705, hitting its 52-week high of $4.94
• Saudi FDA grants accelerated approval for ANKTIVA® in metastatic lung cancer
• $113M preliminary net product revenue reported, a 700% YoY surge
• Options chain sees explosive volume in out-of-the-money calls, with 2026-02-20C5.5 contract trading at 37.5% price change
ImmunityBio’s stock is in a tailwind of momentum, driven by a cascade of clinical and commercial wins. The biotech giant’s ANKTIVA® approval in Saudi Arabia, coupled with a 15-month durable response in Waldenstrom lymphoma, has ignited investor fervor. With the stock trading near its 52-week high and options volatility spiking, the question is: how long can this rally last?

Durable Response in Waldenstrom Lymphoma Drives IBRX's Surge
The 19.11% intraday surge in IBRX is directly tied to its January 16 announcement of a 15-month durable complete response in Waldenstrom lymphoma using chemotherapy-free CD19 CAR-NK cell therapy. This breakthrough, combined with the Saudi FDA’s accelerated approval of ANKTIVA® for metastatic non-small cell lung cancer, has redefined market perception of the stock. The $113 million preliminary net product revenue—700% higher year-over-year—further validates commercial scalability. These catalysts have triggered a re-rating of the stock, pushing it to its 52-week high and igniting speculative buying in call options.

Biotech Sector Splits as IBRX Defies AMGN's Slide
While the broader biotech sector remains mixed, with Amgen (AMGN) down 0.32% on the day, ImmunityBio’s rally is a standalone story. The company’s focus on chemotherapy-free immunotherapies and recent regulatory wins position it as a disruptor in oncology, diverging from traditional biotech giants. This divergence highlights the sector’s bifurcation: innovation-driven small-caps like IBRX are outperforming, while large-cap peers face profit-taking pressure.

Options and ETFs to Capitalize on IBRX's Volatility
• RSI: 92.49 (overbought), MACD: 0.24 (bullish), 200D MA: $2.51 (well above), Bollinger Bands: $4.94 (upper band at 52W high)
• Key Levels: Support at $4.38 (intraday low), resistance at $4.94 (52W high). RSI suggests overbought conditions, but the stock’s momentum suggests a continuation.
• Options Picks:
• IBRX20260220C4.5 (Call, $4.5 strike, 2026-02-20):
• IV: 138.99% (high volatility)
• Leverage: 4.60%
• Delta: 0.654 (moderate sensitivity)
• Theta: -0.0140 (rapid time decay)
• Gamma: 0.1629 (high sensitivity to price swings)
• Turnover: 64,122 (liquid)
• Payoff at 5% upside (ST = $4.99): $0.49 per contract. This call offers a balance of leverage and liquidity, ideal for a short-term bullish bet.
• IBRX20260220C5 (Call, $5 strike, 2026-02-20):
• IV: 142.75% (extreme volatility)
• Leverage: 6.04%
• Delta: 0.563 (moderate sensitivity)
• Theta: -0.0141 (rapid decay)
• Gamma: 0.1817 (high sensitivity)
• Turnover: 164,180 (highly liquid)
• Payoff at 5% upside (ST = $4.99): $0.00 (strike not reached). While the $5 call is riskier, its high leverage and liquidity make it a speculative play if the stock breaks above $5.
Aggressive bulls may consider IBRX20260220C4.5 into a test of $4.94 resistance, while hedgers might pair it with a short-term put for downside protection.

Backtest ImmunityBio Stock Performance
The backtest of IBRX's performance after a 19% intraday surge from 2022 to the present reveals favorable short-to-medium-term gains, with the 3-Day win rate at 46.07%, the 10-Day win rate at 45.17%, and the 30-Day win rate at 51.46%. However, the maximum return during the backtest period was only 6.80% over 30 days, suggesting that while IBRX has a good chance of positive returns in the immediate aftermath of a surge, longer-term performance is more modest.

IBRX’s Momentum Unlikely to Slow—Act Now on High-Leverage Options
ImmunityBio’s rally is underpinned by a trifecta of clinical, regulatory, and commercial wins. The stock’s technicals—RSI at 92.49 and MACD above zero—suggest a continuation of the upward trend, though overbought conditions warrant caution. The options chain, particularly the 2026-02-20C4.5 and C5 contracts, offers high-leverage exposure to this momentum. With Amgen (AMGN) down 0.32% and the biotech sector polarized, IBRX’s innovation-driven narrative is a standout. Investors should monitor the $4.94 level for a breakout confirmation and consider the 2026-02-20C4.5 as a core position. Act now—this is a high-velocity trade with limited time decay.