Neogenomics Surges 23.9% on Landmark Court Win: What's Next for the Biotech Giant?

Summary
• NeoGenomics (NEO) rockets 23.9% intraday to $8.935, defying 52-week low of $4.72
• Court invalidates Natera’s patents, clearing path for RaDaR ST commercialization
• Options frenzy: 2025-09-19 $9 call options surge 920% in turnover

NeoGenomics’ stock erupted in a historic 23.9% intraday rally following a decisive court ruling invalidating Natera’s patents. The victory unlocks commercialization of its RaDaR ST assay, while options markets erupt in volatility. With the stock trading near its 52-week high of $19.115, investors now face a pivotal inflection point between short-term euphoria and long-term skepticism.

Patent Victory Unleashes Biotech Bull Run
The U.S. District Court’s dismissal of Natera’s patent claims against NeoGenomics removed a critical legal overhang, enabling unrestricted commercialization of the RaDaR ST molecular residual disease (MRD) assay. This assay, now submitted for CMS reimbursement, represents a $1.2B MRD testing market opportunity. The ruling directly triggered a 23.9% price surge, with the stock piercing its 200-day moving average of $10.64 for the first time since March 2024.

Healthcare Sector Volatility: Labcorp Leads 1.0% Advance
While NeoGenomics’ 23.9% surge dwarfs sector norms, Labcorp (LH) led the broader healthcare services sector with a 1.0% intraday gain. The divergence highlights NeoGenomics’ unique catalyst-driven momentum versus the sector’s more measured response to general healthcare policy shifts and drug pricing pressures.

Options Volatility Playbook: Gamma-Driven Call Strategy
• 200-day average: $10.64 (below current price)
• RSI: 81.76 (overbought)
• MACD: 0.143 (bullish), Signal Line: -0.024
• Bollinger Bands: Upper $7.17 (below price), Middle $6.15

NeoGenomics’ technicals present a high-risk, high-reward scenario. The stock is trading above all major moving averages but faces immediate resistance at $9.06 (intraday high). A 5% upside scenario to $9.38 would trigger significant call option payoffs. Two standout options:

• NEO20250919C9
- Type: Call
- Strike: $9
- Expiry: 2025-09-19
- IV: 66.37% (moderate)
- Leverage: 17.32% (high)
- Delta: 0.493 (moderate sensitivity)
- Theta: -0.0204 (rapid time decay)
- Gamma: 0.277 (price-sensitive)
- Turnover: $19,218
- Payoff: $0.38/share at $9.38 (42.2% return)
- Why it stands out: High leverage and gamma position it to capitalize on short-term volatility while moderate delta balances directional risk.

• NEO20250919C10
- Type: Call
- Strike: $10
- Expiry: 2025-09-19
- IV: 66.06% (moderate)
- Leverage: 44.18% (very high)
- Delta: 0.252 (low sensitivity)
- Theta: -0.0143 (moderate decay)
- Gamma: 0.2229 (price-sensitive)
- Turnover: $92,328
- Payoff: $0.38/share at $10.43 (38% return)
- Why it stands out: Extreme leverage amplifies potential returns but requires precise timing; ideal for aggressive traders betting on a post-earnings pop.

Trading Setup: Aggressive bulls should target the $9.06 intraday high as a critical breakout level. A close above $9.10 would validate the 52-week high breakout and trigger a retest of $10.64 (200-day MA). Conservative investors may consider a 2025-10-17 $9 call (NEO20251017C9) for a longer-term play with 64.94% implied volatility.

Backtest Neogenomics Stock Performance

Breakout or Bubble? NeoGenomics at Inflection Point
NeoGenomics’ 23.9% surge hinges on its ability to convert the RaDaR ST commercialization win into sustainable revenue. While technicals suggest a short-term bullish bias, the stock’s -8.13 P/E ratio and 52-week low of $4.72 underscore long-term bearish fundamentals. Investors should monitor Labcorp’s 1.0% advance as a sector health barometer. A sustained close above $9.10 would validate the breakout, but a retest of the $8.10 intraday low could trigger a 30% correction. Action: Aggressive bulls may consider NEO20250919C9 into a $9.06 breakout; conservative investors should wait for a pullback to $8.50 before initiating long positions.