Neogenomics Surges 10% on Intraday Rally—What’s Fueling the Momentum?

Summary
• Neogenomics (NEO) rockets 10.23% to $8.245, piercing its 52-week high of $19.115
• Sector leader Labcorp (LH) gains 2.22%, but health care sector shows no direct correlation
• Options chain sees heavy volume in October 17 $8 call (NEO20251017C8) and November 21 $9 call (NEO20251121C9)

Neogenomics’ explosive intraday move has ignited volatility across its options chain, with the stock surging past key technical levels. While the health care sector remains muted, the stock’s sharp reversal from its 52-week low of $4.72 suggests a potential short-term reversal. Traders are now scrutinizing the options activity and technical indicators to gauge sustainability.

Technical Reversal and Options Flow Drive Sharp Rally
The 10.23% intraday surge in Neogenomics aligns with a short-term bearish trend reversal flagged by its Kline pattern, despite the stock remaining in a long-term range. The RSI at 65.86 and MACD crossing above the signal line (0.447 vs. 0.394) confirm momentum turning bullish. Options data reveals heavy buying in the October 17 $8 call (NEO20251017C8) with 3,766 turnover and a 95% price change ratio, while the November 21 $9 call (NEO20251121C9) shows 6,240 turnover and a 100% price change ratio. This suggests institutional positioning for a continuation of the rally, supported by the stock breaking above its 200-day MA of $10.33.

Options and ETF Plays for a Volatile Rally
• 200-day average: $10.33 (above) • RSI: 65.86 (neutral) • MACD: 0.447 (bullish) • Bollinger Bands: $8.99 (upper), $7.13 (middle), $5.27 (lower)

Key levels to watch: The 200-day MA at $10.33 acts as a critical resistance, while the Bollinger upper band at $8.99 could trigger profit-taking. Short-term bulls should target a break above $8.32 (intraday high) to validate the reversal. No leveraged ETFs are available for direct plays.

Top Option 1: NEO20251017C8 (Call, $8 strike, 2025-10-17) • IV: 60.83% (moderate) • Leverage: 10.58% • Delta: 0.610 • Theta: -0.0129 • Gamma: 0.2399 • Turnover: 3,766
• IV suggests moderate volatility expectations • Largely leveraged for capital efficiency • High gamma ensures sensitivity to price moves • Theta decay manageable for short-term play
Payoff: At 5% upside (8.657), payoff = max(0, 8.657 - 8) = $0.657 per share. With 10.58% leverage, this could amplify returns if the rally continues.

Top Option 2: NEO20251121C9 (Call, $9 strike, 2025-11-21) • IV: 59.11% (moderate) • Leverage: 13.76% • Delta: 0.433 • Theta: -0.0076 • Gamma: 0.1815 • Turnover: 6,240
• Balanced delta for directional exposure • High leverage for aggressive positioning • IV in mid-range for reasonable cost • Gamma ensures responsiveness to price swings
Payoff: At 5% upside (8.657), payoff = max(0, 8.657 - 9) = $0.00 (strike not breached). This contract is better suited for a continuation beyond $9.

Action: Aggressive bulls may consider NEO20251017C8 into a break above $8.32, while NEO20251121C9 offers a leveraged play for a sustained rally past $9.

Backtest Neogenomics Stock Performance
Unfortunately, the automatic data-retrieval interface returned an unexpected “404 / Session not found” error while I was fetching NEO’s day-to-day price-change series (needed to isolate every ≥ 10 % up-move since 2022). This looks like a transient infrastructure or session-timeout problem rather than an issue with your request.Two ways forward:1. Retry the data pull (normally succeeds once the back-end connection is re-established). 2. If you have an alternative data source (CSV, Excel, etc.) with NEO daily prices or percentage-change already calculated, you could upload it and I’ll continue the event-backtest from that file.Let me know which approach you prefer and we’ll proceed immediately.

Break Above $8.32 Could Signal New Bullish Phase
The 10.23% intraday surge in Neogenomics reflects a potential short-term reversal, supported by technical indicators and heavy options buying. While the stock remains below its 52-week high, a break above $8.32 (intraday high) would validate the reversal and target the 200-day MA at $10.33. Traders should monitor the October 17 $8 call for immediate momentum and the November 21 $9 call for a longer-term play. With Labcorp (LH) up 2.22%, sector-wide optimism could provide additional tailwinds. Act now: Position for a continuation above $8.32 or consider shorting volatility if the move falters near $7.32 (200D support).