ImmunityBio Soars 29.7% on Intraday Surge: What’s Fueling the Biotech Breakout?

Summary
• ImmunityBio (IBRX) surges 29.7% intraday to $3.9174, breaking above its 52-week high of $4.27.
• Turnover spikes to 53.46 million shares, 16.16% of its float, signaling intense short-term interest.
• RSI hits 87.1, nearing overbought territory, while MACD (0.129) and bullish histogram suggest momentum.

ImmunityBio’s explosive intraday rally has captured market attention, driven by a confluence of sector-wide biotech optimism and speculative positioning. With the stock trading near its 52-week high and technical indicators flashing bullish signals, investors are scrambling to decode the catalyst behind this sharp move.

Biotech Sector Breakthroughs Ignite Speculative Frenzy
The surge in ImmunityBio’s stock aligns with a broader wave of biotech innovation highlighted in recent sector news. Breakthroughs in DNA architecture, CRISPR-engineered crops, and cancer-fighting compounds have created a fertile ground for speculative bets. While ImmunityBio has no direct news tied to its recent performance, the stock’s sharp rise reflects a sector-wide re-rating of biotech assets perceived to benefit from these advancements. The stock’s 29.7% intraday jump suggests traders are capitalizing on the sector’s momentum, particularly as the stock approaches its 52-week high of $4.27.

Biotech Sector Mixed as Amgen Trails IBRX’s Volatility
While ImmunityBio’s intraday surge stands out, the broader biotech sector remains mixed. Amgen (AMGN), the sector’s leader, rose 0.8% on the day, underscoring the disparity between speculative small-cap plays and established biotech giants. The sector’s fragmented performance highlights divergent investor sentiment: while large-cap names like Amgen focus on stable growth, smaller biotechs like IBRX are being driven by high-risk, high-reward narratives tied to cutting-edge research and regulatory optimism.

Options Playbook: Leveraging IBRX’s Volatility with Gamma-Driven Contracts
• MACD: 0.1287 (bullish), Signal Line: 0.0289 (rising), Histogram: 0.0998 (expanding)
• RSI: 87.1 (overbought), 200D MA: $2.50 (well below price), Bollinger Bands: Price at $3.9174 vs. upper band $2.78 (overextended)

ImmunityBio’s technical profile screams short-term overbought conditions, but its proximity to the 52-week high and surging volume suggest a continuation of the rally is possible. For aggressive traders, the IBRX20260220C3.5 and IBRX20260220C4.5 options stand out. These contracts offer high leverage (5.61% and 11.22%) and moderate deltas (0.707 and 0.408), balancing directional exposure with gamma sensitivity. The 5.61% leverage ratio on the $3.5 call implies a 5% price move could translate to ~30% gains, while the $4.5 call’s 11.22% leverage amplifies potential returns in a sustained rally.

• IBRX20260220C3.5: Call, $3.5 strike, 2/20 expiration, IV 95.02%, leverage 5.61%, delta 0.707, theta -0.0078, gamma 0.289, turnover $76,470. High gamma ensures rapid premium gains if the stock breaks above $3.50.
• IBRX20260220C4.5: Call, $4.5 strike, 2/20 expiration, IV 104.02%, leverage 11.22%, delta 0.408, theta -0.0083, gamma 0.299, turnover $47,989. High leverage and moderate delta make this ideal for a 5% upside scenario (target $4.11).

Payoff Estimation: A 5% upside to $4.11 would yield $0.61 profit on the $3.5 call (strike $3.50) and $0.61 on the $4.5 call (strike $4.50). Given the stock’s proximity to its 52-week high, these options offer asymmetric risk-reward. Aggressive bulls should consider IBRX20260220C3.5 into a break above $3.50.

Backtest ImmunityBio Stock Performance
The backtest of IBRX's performance after a 30% intraday surge from 2022 to now shows favorable results, with the 30-day win rate being 51.47% and a maximum return of 6.91% over 56 days.

IBRX’s 52-Week High Looms: Time to Ride the Biotech Wave or Cut Losses?
ImmunityBio’s 29.7% intraday surge has positioned it at a critical juncture near its 52-week high of $4.27. While technical indicators suggest overbought conditions, the stock’s alignment with sector-wide biotech optimism and high gamma options like IBRX20260220C3.5 make a compelling case for a continuation of the rally. However, traders must monitor the 200-day MA at $2.50 as a key support level. With Amgen (AMGN) rising 0.8% and the sector showing mixed momentum, investors should watch for a $3.50 breakout or a pullback to the 52-week low of $1.83 to gauge the move’s sustainability.