IREN Surges 13.4% on Earnings and AI Expansion, Options Chain Ignites Bullish Bets

Summary
• IREN’s stock rockets 13.4% intraday, trading at $26.135 after a $23.04 close
• Earnings report reveals $176.9M net income and 10,900 Nvidia GPU expansion
• Options volume surges with 2133 contracts for IREN20250905C25
• 52-week high of $29.50 reached, 52-week low at $5.125

IREN’s explosive move follows a landmark Q4 earnings report and strategic AI infrastructure expansion. The stock’s 13.4% surge reflects investor optimism over Nvidia-powered GPU growth and Bitcoin mining profitability. With options liquidity spiking and technical indicators flashing bullish signals, the data center operator is now at a critical juncture between momentum and valuation concerns.

Earnings and AI Expansion Drive IREN’s Volatility
IREN’s 13.4% intraday surge stems from a confluence of earnings-driven optimism and strategic AI infrastructure expansion. The company reported a $176.9 million net income for Q4 2025, its first full-year profit since inception, alongside a $501 million revenue surge. This was fueled by Bitcoin mining operations and AI server growth, with plans to scale to 10,900 Nvidia GPUs. The earnings report also highlighted a $1 billion annualized revenue run rate in mining and $250 million potential in AI cloud by year-end. Analysts’ ‘Moderate Buy’ consensus and IREN’s 134.62% YTD gain further stoked demand, while the stock’s 29.5% turnover rate and 81.7x dynamic P/E ratio suggest aggressive re-rating.

Options and Technicals: Capitalizing on IREN’s Breakout
• 52W High: $29.50 (touched today)
• 52W Low: $5.125
• 200D MA: $11.41 (far below current price)
• RSI: 69.37 (approaching overbought)
• MACD: 1.66 (bullish divergence from 1.34 signal line)
• Bollinger Bands: $14.83–$23.94 (price at 26.135, outside upper band)

IREN’s technicals suggest a continuation of its bullish momentum, with key resistance at $29.50 (52W high) and support at $25.62 (intraday low). The stock’s 13.4% move has pushed it into overbought territory on RSI, but strong MACD and Bollinger Band breakouts indicate conviction. For leveraged exposure, consider IREN20250905C25 and IREN20250905C26, which balance liquidity and leverage.

• IREN20250905C25
- Type: Call
- Strike: $25.00
- Expiry: 2025-09-05
- IV: 101.04% (high volatility)
- Delta: 0.621 (moderate sensitivity)
- Theta: -0.166 (rapid time decay)
- Gamma: 0.098 (price sensitivity to movement)
- Turnover: $746,497
- Leverage: 12.93%
- Payoff (5% up to $27.44): $2.44/share
- This contract offers high liquidity and leverage, ideal for short-term bullish bets. The high IV and moderate delta suggest strong directional potential before expiry.

• IREN20250905C26
- Type: Call
- Strike: $26.00
- Expiry: 2025-09-05
- IV: 86.63% (reasonable volatility)
- Delta: 0.512 (balanced sensitivity)
- Theta: -0.146 (rapid decay)
- Gamma: 0.120 (high sensitivity to price swings)
- Turnover: $499,816
- Leverage: 20.37%
- Payoff (5% up to $27.44): $1.44/share
- This option provides a safer entry with lower delta but higher gamma, making it responsive to continued price acceleration.

Aggressive bulls should target a $29.50 close to test the 52W high, with a stop-loss below $25.62. For conservative plays, the IREN20250905C26 offers a balanced risk-reward profile.

Backtest IREN Stock Performance
I have completed a historical test that buys IREN after any session in which it closes at least 13 % above its opening price, and then holds the position for up to 5 trading days (no stop-loss or take-profit rules were applied). • Price series were pulled from 2020-01-01 through 2025-08-29. • Open signals were the next session’s open after each qualifying surge. • Positions were force-closed after 5 trading days (max_holding_days = 5) if no earlier exit trigger occurred. Below is the interactive back-test report; please review it to see the trade list, equity curve and summary statistics.Assumptions you didn’t explicitly specify (and why):1. Surge definition – open-to-close change ≥13 % • This is a common “intraday surge” metric and avoids reliance on intraday high/low data.2. Entry timing – next session’s open • Using the very next tradable price avoids look-ahead bias.3. Exit rule – flat after 5 trading days • Provides a fixed-horizon view of post-surge performance; you can adjust this if you prefer shorter/longer holds.Let me know if you would like to alter any parameters (e.g., holding period, stop-loss, alternative surge definitions) or run additional analyses.

IREN at Inflection Point: AI Growth vs. Valuation Risks
IREN’s 13.4% surge has positioned it at a critical juncture between AI-driven growth and valuation sustainability. With $1 billion in mining revenue and 10,900 Nvidia GPUs deployed, the company’s strategic pivot to AI infrastructure is paying off. However, its 81.7x dynamic P/E and $5.3 billion market cap suggest aggressive expectations. Investors should monitor the $29.50 52W high for a breakout confirmation and watch for earnings guidance updates. Meanwhile, sector leader IBM (-1.31%) highlights the broader tech sector’s mixed performance. For IREN, a sustained close above $27.44 would validate the bullish case, while a retest of $25.62 could trigger profit-taking. Action: Buy IREN20250905C26 for leveraged exposure if $27.44 is breached within 5 days.