Iqiyi Soars 17% on Pre-Earnings Frenzy Trading Volume Surges 287% to $250M Ranks 376th in Market Activity

On August 18, 2025, Iqiyi (IQ) surged 17.09% to close at $2.3999, with a trading volume of $250 million—up 287.22% from the previous day. The stock ranked 376th in trading activity, reflecting heightened investor interest ahead of its Q2 earnings report scheduled for August 20.

The sharp rally was driven by speculation around earnings potential and strategic updates. Pre-market gains of 9.55% signaled aggressive positioning, while technical indicators showed the stock trading above its 200-day moving average. Elevated volume (61.7 million shares) underscored strong short-term demand, though analysts remain divided on whether the move will sustain post-earnings.

Options activity highlighted the volatility. Near-term call options with an $2.5 strike price saw implied volatility spike to 155%, reflecting bets on a post-earnings rebound. Longer-dated options offered a more conservative play, with liquidity and moderate leverage attracting both aggressive and cautious traders. Institutional inflows contrasted with a subdued performance in the broader entertainment sector, reinforcing the stock-specific nature of the rally.

Backtesting of IQ’s performance following a 21% intraday surge revealed mixed outcomes. While the 3-day win rate stood at 50.37%, returns declined to 48.15% over 10 days and 41.70% over 30 days. The maximum return during the period was 0.03%, achieved on the same day as the surge, suggesting limited follow-through momentum.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to now delivered moderate returns. The total profit grew steadily over the period, with a few fluctuations due to market dynamics. As of the latest data, the strategy's total profit stands at $10,720.