I-Mab (IMAB) Soars 28.86% on Intraday Surge—What’s Driving the Volatility?

Summary
• I-Mab’s stock surges 28.85% intraday, hitting a 52-week high of $3.44
• Everest Medicines commits $30.9M to I-Mab, elevating its stake to 16.1%
• Options volume spikes, with IMAB20250815C2.5 seeing 94,910 shares traded

I-Mab’s (IMAB) stock is in a tailwind, surging 28.85% to $2.59 in early afternoon trading. The move follows a $65 million equity offering and a strategic investment from Everest Medicines. With intraday volatility spiking and options liquidity surging, the biotech stock is rewriting its 52-week high. Traders are now weighing the implications of institutional backing and pipeline progress for givastomig.

Strategic Equity Offering and Institutional Backing Ignite I-Mab’s Rally
I-Mab’s meteoric rise stems from a $65 million underwritten offering, with Everest Medicines committing $30.9 million for a 16.1% stake. This institutional validation signals confidence in I-Mab’s pipeline, particularly givastomig’s 83% ORR in gastric cancer trials. The offering’s $1.95 ADS price and Everest’s aggressive participation have unlocked liquidity and optimism. Meanwhile, the stock’s 52-week high at $3.44 aligns with its recent intraday peak, reflecting a market re-rating of its clinical-stage assets and U.S. translational capabilities.

Biotech Sector Volatility Amid Mixed Earnings—How Does I-Mab Stack Up?
Options Playbook: High-Leverage Contracts and Technical Setup
• RSI: 44.23 (oversold)
• MACD: -0.0399 (bearish divergence), Signal Line: -0.0053
• 200-Day Average: $1.239 (well below current price)
• Bollinger Bands: Upper $2.33 (below current price), Middle $2.09
• Support/Resistance: 30D $2.08–$2.11, 200D $0.925–$0.969

I-Mab’s technicals show a short-term bearish trend but long-term bullish divergence. Key levels to monitor include the 52-week high at $3.44 and the 30D support zone of $2.08–$2.11. The stock’s 51.15% turnover rate and 28.85% intraday gain suggest strong liquidity and momentum. For options, two contracts stand out:

• IMAB20250815C2.5
- Type: Call
- Strike Price: $2.50
- Expiration: 2025-08-15
- IV Ratio: 102.01% (high volatility)
- Leverage Ratio: 9.96%
- Delta: 0.611 (moderate sensitivity)
- Gamma: 0.716 (high sensitivity to price swings)
- Theta: -0.0107 (rapid time decay)
- Turnover: 94,910 shares
- Price Change: +420.00%
- Payoff at 5% Upside: $0.22 (ST = $2.72)
- Why It Stands Out: High gamma and moderate delta make it ideal for a short-term rally, with IV at 102% amplifying potential gains.

• IMAB20251017C2.5
- Type: Call
- Strike Price: $2.50
- Expiration: 2025-10-17
- IV Ratio: 139.78% (extremely high)
- Leverage Ratio: 3.70%
- Delta: 0.653 (moderate sensitivity)
- Gamma: 0.221 (moderate sensitivity)
- Theta: -0.0045 (slow time decay)
- Turnover: 9,711 shares
- Price Change: +250.00%
- Payoff at 5% Upside: $0.22 (ST = $2.72)
- Why It Stands Out: High IV and long-dated theta make it a speculative bet for a sustained move above $2.50.

Hook: Aggressive bulls should consider IMAB20250815C2.5 for a short-term pop above $2.50, while long-term holders may eye IMAB20251017C2.5 for a slower, IV-driven play.

Backtest I-Mab Stock Performance
The 29% intraday surge in IMAB has historically led to underwhelming short-to-medium-term performance. The backtest data shows that following such a significant surge, the stock tends to experience downward pressure, with the 3-day win rate at 44.57%, the 10-day win rate at 45.14%, and the 30-day win rate at 44.38%. Additionally, the stock typically exhibits a negative return in the immediate aftermath of the surge, with a maximum return of only -0.14% observed even 30 days later.

Act Now: I-Mab’s Rally Shows Strength—Key Levels to Watch
I-Mab’s 28.85% intraday surge, fueled by Everest’s $30.9 million investment and givastomig’s clinical progress, has repositioned the stock as a short-term momentum play. Technicals suggest a test of the $3.44 52-week high, with the 200-day average at $1.239 acting as a critical floor. While the biotech sector leader Moderna (MRNA) fell 7.61%, I-Mab’s institutional backing and high-gamma options like IMAB20250815C2.5 offer asymmetric upside. Investors should monitor the $2.50 strike for a breakout confirmation and consider the 52-week high as a psychological threshold. Action: Target a $2.72 price (5% upside) and watch for a close above $3.44 to validate the bullish case.