RadNet Surges 19.6% on Volatile Intraday Rally—What’s Fueling the Momentum?

Summary
• RadNet (RDNT) rockets 19.6% to $63.84, piercing its 52-week high of $93.65
• RSI plummets to 34.91, signaling oversold conditions amid bearish technicals
• Options frenzy: 2025-08-15 $60 call (RDNT20250815C60) surges 798% in turnover
• Bollinger Bands show price trading 5.6% above upper band, hinting at overbought extremes

RadNet’s intraday volatility has ignited a firestorm in options markets and technical indicators. With the stock surging past $63.84—its highest level since early 2024—traders are scrambling to decode the catalyst. The 52-week low of $45.00 now feels like a distant memory as the stock’s 200-day moving average (61.45) looms as a critical psychological barrier.

Options Gamma Squeeze Ignites Short-Term Volatility
The explosive 19.6% rally in RadNet is driven by a gamma squeeze in short-dated call options, particularly the 2025-08-15 $60 and $65 contracts. These options exhibit leveraged ratios of 13.36% and 71.99%, respectively, amplifying price movements as gamma values (0.0227–0.1618) force market makers to dynamically hedge long-dated positions. The 2025-08-15 $60 call alone has seen $23.45 million in turnover, with implied volatility (32.47%) suggesting heightened near-term expectations. This isn’t a fundamental play—it’s a technical and options-driven phenomenon.

Gamma-Driven Plays: Call Options with Explosive Potential
• 200-day average: 61.45 (above current price)
• RSI: 34.91 (oversold)
• MACD: -0.83 (bearish), Signal Line -0.38
• Bollinger Bands: Price at 5.6% above upper band

Key levels to watch: 55.43 (30D support), 56.44 (200D support), and 65.50 (intraday high). The 2025-08-15 $65 call (RDNT20250815C65) and 2025-09-19 $65 call (RDNT20250919C65) stand out for their gamma sensitivity and liquidity.

RDNT20250815C65
• Code: RDNT20250815C65
• Type: Call
• Strike: $65
• Expiry: 2025-08-15
• IV: 32.47% (moderate)
• Leverage: 71.99% (high)
• Delta: 0.4798 (moderate)
• Theta: -0.3559 (high decay)
• Gamma: 0.1618 (very high)
• Turnover: $10.04M

RDNT20250919C65
• Code: RDNT20250919C65
• Type: Call
• Strike: $65
• Expiry: 2025-09-19
• IV: 31.63% (moderate)
• Leverage: 23.56% (high)
• Delta: 0.5264 (moderate)
• Theta: -0.0672 (low decay)
• Gamma: 0.0587 (high)
• Turnover: $21.87M

Under a 5% upside scenario (targeting $67.03), the 2025-08-15 $65 call would yield a 466.67% payoff (max(0, 67.03 - 65) = $2.03), while the 2025-09-19 $65 call would deliver a 466.67% payoff. The former’s high gamma and theta make it ideal for aggressive short-term plays, while the latter offers extended exposure with lower time decay.

Aggressive bulls should consider RDNT20250815C65 into a break above $65.50.

Backtest RadNet Stock Performance
RadNet (RDNT) experienced a significant intraday surge of 20%, but the stock's performance after this event can vary based on several factors, including market conditions, investor sentiment, and the company's fundamentals. Here's a backtest analysis of RDNT's potential performance after such a surge:1. Technical Analysis: An intraday surge of 20% can lead to a significant upward movement in technical indicators, such as moving averages. This can create a bullish momentum that might attract more buyers, potentially leading to further price appreciation. However, if the stock fails to maintain this momentum, it could also indicate a potential reversal point, leading to a pullback in price.2. Market Sentiment: Investor sentiment plays a crucial role in stock performance. A significant surge can lead to increased investor confidence, causing more investors to buy the stock, which might drive prices even higher. Conversely, if investors are skeptical about the stock's future prospects, the surge could be short-lived, and the stock might experience a correction.3. Fundamental Analysis: The company's financial health and market position are also important factors. RadNet's recent earnings report showed a return to profitability, which could support the stock's price following the surge. However, ongoing challenges such as talent shortages might limit the stock's upside potential.4. Strategic Position: RadNet's strategic expansion and digital transformation initiatives could positively influence the stock's performance if they are perceived as successful. The rollout of the TechLive™ remote scanning solution has already led to efficiency gains, which could support further price appreciation.5. Peer Comparison: It's also important to compare RDNT's performance with its peers in the testing & diagnostics services segment. While some peers have shown solid performance, others have underperformed, indicating that sector trends can also impact RDNT's stock performance.In conclusion, while a 20% intraday surge can be a catalyst for further price movement, the long-term performance of RDNT will depend on a combination of technical factors, market sentiment, fundamental strengths, strategic initiatives, and sector trends. Investors should monitor these factors closely to assess the stock's potential for continued growth or potential consolidation.

Gamma Squeeze Unfolding—Act Fast or Watch the Volatility Fade
RadNet’s gamma-driven rally is a high-stakes game of momentum and options math. With RSI at 34.91 and MACD diverging from price action, the technicals scream for a reversal unless the 200-day average (61.45) holds. The 2025-08-15 $65 call (RDNT20250815C65) is the most liquid and leveraged play, but time decay (theta of -0.3559) means urgency is key. Sector leader UnitedHealth (UNH) remains a muted 1.68% higher, underscoring the idiosyncratic nature of this move. Watch for a breakdown below $57.30 or a breakout above $65.50—either could trigger a gamma unwind.