QXO Surges 5.86% to 52-Week High Amid $1.2B Apollo Investment: Is This the Start of a Bullish Run?

Summary
• QXO’s stock price hits $24.75, up 5.86% from $23.38
• Intraday high of $24.95 matches 52-week high
• Apollo Global Management leads $1.2B convertible preferred equity investment
• Options chain shows high leverage ratios and implied volatility spikes

QXO, Inc. (QXO) has surged to a 52-week high amid a landmark $1.2 billion investment from Apollo Global Management. The stock’s 5.86% intraday gain reflects a mix of strategic capital infusion and sector momentum. With the Industrial Distribution sector showing resilience, QXO’s rally raises questions about its sustainability and tactical entry points for traders.

Apollo’s $1.2B Investment Ignites QXO’s Bullish Momentum
QXO’s sharp 5.86% rally is directly tied to a $1.2 billion convertible preferred equity investment led by Apollo Global Management. This capital infusion, announced on January 8, 2026, is earmarked to fund future acquisitions and operational expansion. The transaction, which values QXO at a premium to its 52-week high, has triggered a surge in investor confidence. Apollo’s involvement signals a strategic bet on QXO’s distribution network and growth potential in the industrial materials sector, driving immediate price action.

Industrial Distribution Sector Gains Steam as QXO Outperforms
The Industrial Distribution sector has seen mixed performance, but QXO’s 5.86% gain outpaces its peers. Sector leader W.W. Grainger (GWW) rose 2.98%, reflecting broader industry optimism. QXO’s rally, however, is fueled by Apollo’s capital infusion, distinguishing it from sector-wide trends. The investment underscores QXO’s unique positioning in building materials and roofing products, where demand remains robust despite macroeconomic headwinds.

Options and ETFs to Capitalize on QXO’s Volatility and Momentum
• 200-day MA: $18.71 (well below current price)
• RSI: 60.30 (neutral to bullish)
• MACD: 0.79 (bullish divergence)
• Bollinger Bands: Price at $24.75, above upper band of $23.78

QXO’s technicals suggest a continuation of its bullish trend, supported by strong momentum indicators. The stock is trading above its 200-day MA and RSI is in overbought territory, indicating potential for further gains. For options traders, two contracts stand out:

• QXO20260116C24 (Call, $24 strike, Jan 16 expiration):
- IV: 43.83% (moderate)
- Leverage Ratio: 19.94%
- Delta: 0.725 (moderate sensitivity)
- Theta: -0.109 (high time decay)
- Gamma: 0.194 (high sensitivity to price movement)
- Turnover: 7,572
- Payoff at 5% upside ($26.00): $2.00 per contract
- This call option offers a balance of leverage and liquidity, ideal for capitalizing on a continuation of QXO’s rally.

• QXO20260116C25 (Call, $25 strike, Jan 16 expiration):
- IV: 47.00% (moderate)
- Leverage Ratio: 35.11%
- Delta: 0.504 (moderate sensitivity)
- Theta: -0.095 (high time decay)
- Gamma: 0.217 (high sensitivity to price movement)
- Turnover: 50,194
- Payoff at 5% upside ($26.00): $1.00 per contract
- This contract provides higher leverage and strong gamma, making it suitable for aggressive bulls expecting a sharp move.

Aggressive bulls may consider QXO20260116C25 into a breakout above $25.50, while conservative traders can target QXO20260116C24 for a more controlled position.

Backtest QXO Stock Performance
The backtest of the QXO's performance following a 6% intraday increase from 2022 to the present reveals favorable short-to-medium-term gains, with the 3-Day win rate at 50.45%, the 10-Day win rate at 54.95%, and the 30-Day win rate at 61.26%. The maximum return during the backtest was 16.19% over 30 days, indicating the strategy's effectiveness in capturing intraday volatility.

QXO’s Rally Gains Legs: Time to Act on Apollo-Driven Momentum
QXO’s 5.86% surge to a 52-week high is a clear signal of Apollo’s strategic bet and sector strength. The stock’s technicals and options activity suggest a continuation of this bullish trend, particularly if it holds above $24.50. Investors should monitor key levels at $24.75 (current price) and $25.50 (next resistance). Meanwhile, sector leader W.W. Grainger (GWW) rising 2.98% reinforces the industrial distribution theme. Act now: Buy QXO20260116C25 for a high-leverage play or QXO20260116C24 for a balanced approach. Watch for a breakdown below $23.21 (intraday low) to signal a reversal.