Regeneron Surges 2.78% on Groundbreaking Myeloma Trial Data: Can This Biotech Giant Outpace the Sector?

Summary
• Regeneron’s Lynozyfic shows 100% residual disease eradication in myeloma trial
• Stock hits intraday high of $717.88, up from $692.50
• 52-week range of $476.49–$790.98 highlights volatility potential

Regeneron Pharmaceuticals (REGN) is surging on a historic clinical breakthrough as its Lynozyfic therapy eliminates residual multiple myeloma in all 18 trial participants. With the stock trading at $711.86 (up 2.78%) and hitting a 52-week high of $717.88, the market is reacting to data that could redefine treatment protocols. This move outpaces a modest 0.63% gain in sector leader Amgen (AMGN), signaling a potential shift in biotech momentum.

Lynozyfic's Myeloma Trial Success Sparks Rally
Regeneron’s stock is surging on preliminary data from a mid-stage trial where its Lynozyfic therapy eradicated residual multiple myeloma in all 18 participants, eliminating the need for bone marrow transplants. This dual-targeting antibody (CD3 and BCMA) has demonstrated unprecedented efficacy in eradicating residual disease, a critical factor in long-term remission. The FDA’s July approval of Lynozyfic for recurrent myeloma now gains renewed momentum as the trial suggests it could replace toxic chemotherapy regimens, directly addressing unmet medical needs and expanding commercial potential.

Biotech Sector Rally Led by Regeneron's Breakthrough
The biotech sector is mixed, with Amgen (AMGN) up 0.63% but trailing Regeneron’s 2.78% surge. While AMGN’s modest gain reflects broader sector stability, Regeneron’s rally is driven by a product-specific breakthrough. Lynozyfic’s trial results position Regeneron as a leader in oncology innovation, contrasting with peers like Novo Nordisk (NVO) and Eli Lilly (LLY), whose GLP-1 drugs face muted cancer risk data. This divergence highlights Regeneron’s ability to capitalize on niche therapeutic advancements.

Options Playbook: Leveraging Lynozyfic's Momentum with High-Gamma Contracts
• 200-day MA: $598.90 (well below current price)
• RSI: 41.89 (oversold territory)
• Bollinger Bands: $657.88–$795.76 (current price near upper band)
• MACD: 18.27 (bullish divergence from signal line at 29.23)

Key levels to watch include the 200-day MA ($598.90) and the 52-week high ($790.98). The RSI in oversold territory suggests potential for a rebound, while the MACD histogram’s negative value (-10.96) indicates short-term bearish momentum. Aggressive bulls should target the $710–$725 range, where high-gamma options offer leverage. The biotech sector’s mixed performance underscores the need for precision in options selection.

Top Option 1: REGN20251219C710
• Code: REGN20251219C710
• Type: Call
• Strike: $710
• Expiry: 2025-12-19
• IV: 31.27% (moderate)
• Leverage: 44.44% (high)
• Delta: 0.5386 (moderate sensitivity)
• Theta: -2.0694 (rapid time decay)
• Gamma: 0.0108 (high sensitivity to price swings)
• Turnover: 34,228 (liquid)

This contract offers a balance of leverage and liquidity, ideal for capitalizing on a breakout above $710. The high gamma ensures responsiveness to price swings, while the moderate IV suggests reasonable cost.

Top Option 2: REGN20251219C725
• Code: REGN20251219C725
• Type: Call
• Strike: $725
• Expiry: 2025-12-19
• IV: 26.19% (low)
• Leverage: 98.88% (very high)
• Delta: 0.3536 (moderate)
• Theta: -1.4656 (moderate decay)
• Gamma: 0.0120 (high)
• Turnover: 7,309 (liquid)

This high-leverage contract is suited for a continuation of the rally. The low IV reduces premium costs, while the high gamma amplifies gains if the stock breaks above $725. Projected payoff at 5% upside ($747.40) yields $22.40 per contract.

Action: Aggressive bulls should buy REGN20251219C710 into a breakout above $710 or REGN20251219C725 for a high-leverage play on the 52-week high.

Backtest Regeneron Stock Performance
The backtest of Regeneron (REGN) after a 3% intraday increase from 2022 to the present shows favorable performance metrics. The 3-day win rate is 51.72%, the 10-day win rate is 54.77%, and the 30-day win rate is 57.40%, indicating a higher probability of positive returns in the short term. The maximum return during the backtest was 1.88%, which occurred on day 54, suggesting that REGN can deliver modest gains following a 3% intraday surge.

Regeneron’s Myeloma Breakthrough: A Catalyst for Sustained Outperformance
Regeneron’s rally is underpinned by a transformative clinical milestone, positioning Lynozyfic as a potential standard of care in myeloma treatment. The stock’s technicals suggest a continuation of the upward trend, with the 52-week high ($790.98) as the next target. Investors should monitor the 200-day MA ($598.90) as a critical support level and watch for a breakout above $710 to validate momentum. With sector leader Amgen (AMGN) up 0.63%, Regeneron’s 2.78% surge highlights its ability to outperform on product-specific catalysts. Act now: Buy REGN20251219C710 or hold for a test of the 52-week high.