Kyverna Therapeutics Plunges 31.8%: A $100M Offering Ignites Investor Fears – What’s Next for the Biotech Giant?

Summary
• Kyverna (KYTX) slumps 31.79% intraday to $6.985, a 31.25% drop from its 52-week high of $13.67.
• A $100M public offering priced at $7.50 per share—below its previous close of $10.24—triggers sharp dilution concerns.
• Turnover surges to 11.89M shares, with Bollinger Bands indicating oversold conditions at $5.91.
• The stock’s collapse underscores biotech sector volatility, as Amgen (AMGN) also dips 0.15% amid broader market jitters.

Kyverna Therapeutics’ stock has imploded on Wednesday, December 17, 2025, as a $100M equity offering priced at a steep discount sparks panic among shareholders. The biotech firm’s aggressive capital raise—selling 13.33M shares at $7.50—has triggered a 31.8% intraday drop, with the stock trading near its 52-week low. Investors are now grappling with the implications of dilution, regulatory risks, and the company’s ability to fund its autoimmune disease pipeline. With the offering set to close on December 18, the immediate focus shifts to market sentiment and technical indicators.

Dilution-Driven Selloff: Kyverna’s $100M Offering Sparks Investor Exodus
Kyverna’s 31.8% intraday plunge is directly tied to its $100M public offering, which priced shares at $7.50—31.5% below its previous close of $10.24. The offering, which includes 13.33M shares and a 30-day over-allotment option for 1.99M additional shares, has triggered a sharp selloff as existing shareholders face significant dilution. The move, while intended to bolster Kyverna’s cash reserves for clinical trials, has been interpreted as a sign of financial distress. The stock’s collapse aligns with the company’s negative earnings (EPS -0.85) and a cash burn rate of $43.32M, raising concerns about its ability to sustain operations without further capital raises.

Biotech Sector Volatility: Amgen’s Resilience Amid Kyverna’s Collapse
While Kyverna’s stock crumbles, the broader biotech sector remains mixed. Amgen (AMGN), the sector’s leader, trades down 0.15% intraday, reflecting cautious sentiment but avoiding Kyverna’s extreme volatility. The sector’s mixed performance highlights divergent investor priorities: while Kyverna’s dilutive offering has spooked shareholders, Amgen’s stable earnings and strong balance sheet (current ratio 5.2) provide a contrast. However, Kyverna’s collapse underscores the sector’s sensitivity to capital-raising moves, particularly in high-growth but unprofitable biotech firms.

Options Playbook: Navigating Kyverna’s Volatility with High-Leverage Contracts
• MACD: 0.688 (bullish divergence), Signal Line: 0.405, RSI: 70.21 (overbought), 200D MA: $4.24 (far below current price).
• Bollinger Bands: $5.91 (lower band) near support, with price trading at 16.5% below the middle band ($7.97).
• 30D MA: $7.59 (close to the $7.50 offering price), suggesting potential resistance.

Kyverna’s technicals paint a picture of extreme volatility. The RSI at 70.21 indicates overbought conditions, while the MACD histogram (0.284) suggests bullish momentum. However, the stock’s proximity to its 52-week low and Bollinger Bands’ lower boundary ($5.91) signal a potential oversold rebound. Traders should monitor the $7.50 level—where the offering price and 30D MA converge—as a critical inflection point.

Top Options Contracts:
• KYTX20260116P7.5 (Put Option)
- Strike Price: $7.50, Expiration: 2026-01-16, IV: 116.79%, Delta: -0.508, Theta: -0.0089, Gamma: 0.167, Turnover: 28,408.
- IV (Implied Volatility): Extremely high, reflecting market uncertainty.
- Delta: Sensitive to price drops, ideal for bearish bets.
- Theta: Moderate time decay, suitable for short-term plays.
- Gamma: High sensitivity to price swings, amplifying gains in volatile markets.
- Turnover: Strong liquidity ensures easy entry/exit.
- Payoff (5% downside): $0.26 per share (max gain if price falls to $6.63).
- Why it stands out: This put option offers high leverage (5.70%) and gamma, making it ideal for capitalizing on Kyverna’s near-term volatility. The high IV and moderate delta balance risk and reward.

• KYTX20260116C7.5 (Call Option)
- Strike Price: $7.50, Expiration: 2026-01-16, IV: 90.77%, Delta: 0.455, Theta: -0.0154, Gamma: 0.214, Turnover: 51,539.
- IV: Mid-range, indicating balanced expectations.
- Delta: Moderate sensitivity to price rises, suitable for bullish bets.
- Theta: High time decay, favoring quick price moves.
- Gamma: Strong sensitivity to price swings, ideal for volatile environments.
- Turnover: High liquidity ensures trade execution.
- Payoff (5% downside): $0.00 (no gain if price falls to $6.63).
- Why it stands out: This call option’s high gamma and moderate delta make it a speculative play for a potential rebound above $7.50. The high turnover ensures liquidity, but its theta decay requires rapid price action.

Trading Hook: Aggressive bears should prioritize KYTX20260116P7.5 for a 5.70% leverage play, while bulls may consider KYTX20260116C7.5 if Kyverna breaks above $7.50. Watch for a breakdown below $6.72 (intraday low) to confirm bearish momentum.

Backtest Kyverna Stock Performance
The iPath S&P 500 VIX Short-Term Futures ETN (KYTX) experienced a significant intraday plunge of -32% in 2022, but subsequent performance showed resilience with varying win rates and returns over different time frames:

Kyverna’s Crossroads: Dilution, Volatility, and the Path Forward
Kyverna’s 31.8% plunge underscores the risks of aggressive capital raises in high-growth biotech. While the $100M offering provides short-term liquidity, the long-term impact hinges on investor confidence in its autoimmune pipeline. Technically, the stock’s proximity to its 52-week low and Bollinger Bands’ lower boundary suggests a potential rebound, but the offering’s dilutive effect may prolong the selloff. Traders should monitor the $7.50 level—where the offering price and 30D MA align—as a critical inflection point. Meanwhile, Amgen’s -0.15% decline highlights the sector’s mixed sentiment. For Kyverna, the next 48 hours will test its ability to stabilize its share price and reassure stakeholders. Action Alert: Watch for a breakdown below $6.72 (intraday low) or a rebound above $7.50 to dictate next steps.