RAPT Therapeutics Soars 8.99%: What's Fueling This Biotech Surge?

Summary
• RAPT Therapeutics (RAPT) surges 8.99% to $36.85, hitting an intraday high of $37.75
• Biotech sector gains momentum with AMGN leading sector-wide gains
• Options chain shows elevated volatility, with 2026-01-16 $40 call option trading at 88.53% IV

RAPT Therapeutics has captured market attention with a sharp intraday rally, driven by broader biotech sector strength and speculative positioning. The stock’s 8.99% surge to $36.85 reflects a mix of technical momentum and sector-wide optimism, as AMGN’s 1.20% gain underscores biotech’s resilience. With the 52-week high at $42.39 and a dynamic PE of -14.62, investors are weighing short-term volatility against long-term pipeline potential.

Biotech Sector Rally Drives RAPT's Sharp Intraday Surge
RAPT’s 8.99% intraday gain aligns with a broader biotech sector upswing, fueled by recent Nobel Prize recognition for Seattle-based firms and renewed investor confidence in therapeutic innovation. While RAPT lacks direct news catalysts, the sector’s momentum—led by AMGN’s 1.20% rise—has spilled over to smaller biotechs. Elevated options volatility (88.53% IV on 2026-01-16 $40 calls) suggests speculative positioning, with traders anticipating continued sector strength. The stock’s 52-week high of $42.39 remains a key psychological barrier, but the current rally reflects broader market rotation into biotech amid favorable regulatory and funding news.

Biotech Sector Gains Momentum as AMGN Leads Charge
RAPT’s 8.99% surge outpaces AMGN’s 1.20% gain, highlighting smaller biotechs’ volatility amid sector-wide optimism. The biotech index’s positive momentum, driven by Nobel Prize recognition and increased R&D funding, has created a tailwind for speculative names like RAPT. While AMGN’s scale and diversified pipeline anchor the sector, RAPT’s high leverage ratio (16.33% on 2026-01-16 $40 calls) reflects its role as a high-beta play. Sector-wide gains suggest a shift toward risk-on positioning, with biotech’s long-term growth narrative gaining traction.

Options Playbook: High-Leverage Calls for Biotech Bulls
• 200-day MA: $13.62 (far below current price)
• RSI: 57.77 (neutral to overbought)
• MACD: 1.27 (bullish divergence from signal line 1.50)
• Bollinger Bands: Price at 36.85 (above upper band 38.10)

Technical indicators suggest RAPT is in a short-term overbought phase but remains within a long-term bullish trend. The 200-day MA is a distant support, while the RSI and MACD hint at continued momentum. For aggressive bulls, the 2026-01-16 $40 call (RAPT20260116C40) offers 16.33% leverage with 88.53% IV and a delta of 0.4098. This contract’s high gamma (0.0448) and theta (-0.0854) make it ideal for a short-term rally. A 5% upside to $38.69 would yield a payoff of $2.69 per contract. The 2026-02-20 $40 call (RAPT20260220C40) is a secondary play, with 8.73% leverage and 89.88% IV, offering lower gamma (0.0295) but extended time decay (-0.0535). Both contracts benefit from elevated sector volatility and RAPT’s current breakout pattern. Aggressive bulls should target a $37.75 retest of the intraday high before scaling into calls.

Backtest RAPT Therapeutics Stock Performance
The RAPT strategy has demonstrated positive performance following a 9% intraday increase from 2022 to the present. The backtest data reveals a 3-day win rate of 50.43%, a 10-day win rate of 51.71%, and a 30-day win rate of 53.42%. While the average returns over these periods are modest, the maximum return during the backtest was 5.86% over 30 days, indicating that the strategy can capture significant gains opportunistically.

RAPT's Momentum Suggests Aggressive Positioning for Biotech Optimists
RAPT’s 8.99% surge reflects a confluence of sector-wide optimism and speculative positioning, with the 2026-01-16 $40 call offering high leverage for a potential breakout. While the stock’s dynamic PE of -14.62 and 52-week high of $42.39 remain key hurdles, the biotech sector’s momentum—led by AMGN’s 1.20% gain—suggests continued support. Investors should monitor the $37.75 intraday high as a critical level; a sustained close above this could validate the rally. For now, the 2026-01-16 $40 call (16.33% leverage) and 2026-02-20 $40 call (8.73% leverage) offer the most compelling risk/reward. Watch for a $37.75 breakout or a pullback to the 33.27 Bollinger middle band for entry opportunities.