IMNM Plunges 12% on $400M Share Offering, RSI Near Overbought: Is This a Short-Squeeze Setup?

Summary
• Immunome (IMNM) announces $400M public offering, triggering 12.08% intraday selloff
• Stock trades at $20.64, down from $21.555 open, with $21.93 high and $20.40 low
• RSI at 71.69 signals overbought conditions amid volatile biotech sector dynamics

Immunome’s stock is in freefall after the biotech firm priced a $400M share offering, sparking immediate investor skepticism. The 12.08% intraday drop has pushed the stock near key technical levels, with RSI nearing overbought territory. Analysts are now dissecting whether this selloff is a buying opportunity or a warning sign for a sector already grappling with regulatory and funding headwinds.

Dilutive Share Offering Sparks Sharp Selloff
The 12.08% intraday plunge in Immunome’s stock is directly tied to its $400M public offering of 18.625M shares at $21.50 per share. The offering, set to close on December 18, includes a 30-day option for underwriters to purchase an additional 2.79M shares. This aggressive capital raise—managed by top-tier underwriters like J.P. Morgan and Goldman Sachs—has triggered immediate dilution concerns. The market’s reaction underscores investor wariness of equity financing in a sector where dilution often precedes underperformance, particularly for companies with unprofitable pipelines.

Biotech Sector Mixed as Amgen Holds Steady
While Immunome’s stock tumbles, the broader biotech sector remains mixed. Amgen (AMGN), the sector’s leader, is up 0.15% intraday, reflecting its strong earnings and diversified pipeline. This divergence highlights Immunome’s vulnerability to dilutive financing, a risk not shared by larger, cash-flow-positive peers. The sector’s cautious tone, however, suggests that Immunome’s selloff may not be an isolated event, especially with regulatory scrutiny and funding challenges persisting across biotech.

Options Playbook: Capitalizing on IMNM’s Volatility
• RSI: 71.69 (overbought), MACD: 1.356 (bullish), Bollinger Bands: $16.06–$22.38
• 200D MA: $11.11 (far below current price), 30D MA: $18.30 (support zone)

Immunome’s technicals suggest a volatile short-term outlook. The RSI near overbought territory and MACD above zero indicate potential for a rebound, but the 200D MA remains a critical long-term hurdle. Key levels to watch: $20.00 (immediate support) and $23.48 (previous close).

Top Options Picks:
• IMNM20260116P20 (Put, $20 strike, Jan 16 expiry):
- IV: 86.12% (high volatility)
- Leverage: 12.13% (aggressive)
- Delta: -0.397 (moderate sensitivity)
- Theta: -0.0189 (slow decay)
- Gamma: 0.0745 (responsive to price swings)
- Turnover: $13,919 (liquid)
- Payoff (5% downside): $0.92 per share
- Why: High leverage and gamma make this put ideal for a short-term bearish bet if the stock breaks below $20.00.

• IMNM20260116C20 (Call, $20 strike, Jan 16 expiry):
- IV: 86.75% (high volatility)
- Leverage: 8.59% (moderate)
- Delta: 0.603 (strong directional bias)
- Theta: -0.0458 (rapid decay)
- Gamma: 0.0740 (high sensitivity)
- Turnover: $76,026 (very liquid)
- Payoff (5% downside): $0.00 (no intrinsic value)
- Why: Despite the bearish scenario, this call’s high liquidity and gamma could benefit from a rebound above $20.00.

Action: Aggressive bulls may consider IMNM20260116C20 into a bounce above $20.00, while bears should monitor the $20.00 support level. If the stock closes below $20.00, IMNM20260116P20 offers a high-leverage short-side play.

Backtest Immunome Stock Performance
The performance of IMNM after a -12% intraday plunge from 2022 to now has shown positive returns. The backtest data indicates a 3-day win rate of 52.86%, a 10-day win rate of 53.27%, and a 30-day win rate of 59.59%. Additionally, the maximum return during the backtest period was 18.10%, with a maximum return day at 59.

IMNM at Crossroads: Act on $20.00 Support Breakdown
Immunome’s 12.08% intraday drop has created a critical juncture for investors. The $20.00 support level is now in focus, with a breakdown likely to trigger further selling. While the sector leader Amgen (AMGN) remains stable, Immunome’s dilutive financing and overbought RSI suggest caution. Traders should prioritize short-term options like IMNM20260116P20 if the stock closes below $20.00. For bulls, a rebound above $20.00 could reignite momentum, but the 200D MA at $11.11 remains a distant target. Watch for $20.00 breakdown or regulatory reaction—this is the key signal to act on.