Immunovant Surges 10.1% on $550M Funding Boost: Is This the Catalyst for a Biotech Breakout?

Summary
• Immunovant’s stock soars 10.1% intraday to $25.94, fueled by a $550M equity offering.
• Roivant Sciences, the controlling shareholder, underwrites the deal to fund Graves’ Disease commercialization.
• Technicals show a bullish engulfing pattern and RSI neutrality at 52.75, hinting at momentum.

Immunovant’s dramatic intraday rally has captured market attention, with shares surging 10.1% to $25.94 amid a $550M capital raise. The offering, led by Roivant Sciences, aims to fund the potential commercial launch of IMVT-1402 for Graves’ Disease. Technical indicators and options activity suggest a short-term bullish bias, though the biotech sector’s mixed performance adds nuance to the trade setup.

Capital Raise Fuels Optimism on Graves’ Disease Commercialization
Immunovant’s 10.1% intraday surge is directly tied to its $550M equity offering, announced on December 11, 2025. The transaction, underwritten by Leerink Partners, provides the company with sufficient cash runway to fund operations through the potential commercial launch of IMVT-1402 in Graves’ Disease. Roivant Sciences, the controlling shareholder, agreed to purchase shares, signaling confidence in the pipeline. The offering’s pricing at $21 per share—well below the current intraday high of $27.06—has triggered a short-term re-rating as investors price in the extended runway and reduced near-term capital-raising risks.

Biotech Sector Mixed as Amgen Gains 0.73%
The broader biotech sector showed mixed performance, with Amgen (AMGN) rising 0.73% on the day. While Immunovant’s 10.1% move far outpaces the sector’s average, the rally in AMGN suggests underlying demand for large-cap biotech names. However, Immunovant’s aggressive funding and pipeline focus on autoimmune diseases position it as a high-conviction play within a sector that remains sensitive to regulatory and clinical risks.

Options and ETFs to Capitalize on Short-Term Momentum
• MACD: 0.399 (bullish divergence from signal line at 0.579)
• RSI: 52.75 (neutral, suggesting potential for further upside)
• Bollinger Bands: Price at $25.94, above the upper band of $24.395, indicating overbought conditions
• 200D MA: 17.47 (price at 25.94, strong separation)

Immunovant’s technicals and options activity point to a short-term bullish setup. Key resistance lies at the 52-week high of $28.08, while support is near the 200-day moving average. The RSI’s neutrality and MACD’s bearish crossover suggest caution, but the Bollinger Band breakout and high implied volatility in near-term options justify a tactical long position. The biotech sector’s mixed performance, with Amgen up 0.73%, adds context for sector-relative positioning.

Top Options Picks:
• IMVT20251219C25
- Type: Call
- Strike: $25
- Expiration: 2025-12-19
- IV: 103.11% (high volatility)
- Leverage Ratio: 11.95% (moderate)
- Delta: 0.6237 (moderate sensitivity)
- Theta: -0.1529 (rapid time decay)
- Gamma: 0.0904 (high sensitivity to price changes)
- Turnover: $45,202
- Payoff (5% upside): $1.37 per contract (max(0, 27.24 - 25))
- Why: High IV and gamma make this call ideal for a short-term rally, with liquidity to ensure execution.

• IMVT20251219C26
- Type: Call
- Strike: $26
- Expiration: 2025-12-19
- IV: 50.24% (moderate)
- Leverage Ratio: 32.42% (high)
- Delta: 0.5092 (moderate)
- Theta: -0.1023 (rapid decay)
- Gamma: 0.1949 (very high sensitivity)
- Turnover: $2,426
- Payoff (5% upside): $1.24 per contract (max(0, 27.24 - 26))
- Why: High leverage and gamma amplify returns if the rally continues, though liquidity is lower than the $25 strike.

Action: Aggressive bulls may consider IMVT20251219C25 into a breakout above $27.06, while conservative traders can use the $26 call for leveraged exposure.

Backtest Immunovant Stock Performance
The backtest of IMVT's performance following a 10% intraday increase from 2022 to the present shows impressive results. The strategy achieved a 158.54% return, significantly outperforming the benchmark, which gained 43.09%. The excess return was 115.45%, indicating that the strategy's focus on intraday percentage changes yielded substantial gains. The CAGR was 27.41%, and the Sharpe ratio was 0.38, suggesting that the risk-adjusted return was favorable. However, the maximum drawdown was 0.00%, which may raise concerns about the strategy's ability to withstand market downturns. The high volatility of 72.08% also implies that the strategy was subject to significant price swings.

Breakout or Blip? Watch $28.08 and Sector Sentiment
Immunovant’s 10.1% surge is a high-conviction trade, driven by the $550M capital raise and bullish technicals. However, the 52-week high at $28.08 and the 200-day moving average at $17.47 remain critical levels to monitor. The biotech sector’s mixed performance, with Amgen up 0.73%, suggests sector-wide caution. Investors should watch for a close above $28.08 to confirm the breakout or a pullback to the 200-day MA as a potential entry point. For now, the options market and technical indicators favor a short-term bullish stance, but volatility remains elevated.