Regeneron Surges 4.2% on Groundbreaking Myeloma Drug Data – Is This the Catalyst for a New Bull Run?

Summary
• Regeneron (REGN) rockets 4.2% to $721.7, hitting a 52-week high of $722.52
• Lynozyfic trial data shows 100% residual disease eradication in 18 myeloma patients
• Short interest rises 10.5% to 3.15M shares, signaling growing bearish sentiment
• Analysts debate whether $768.36 fair value target justifies current rally

Regeneron’s stock is surging on a medical breakthrough that could redefine multiple myeloma treatment. With Lynozyfic eliminating residual cancer cells in all trial participants, investors are reevaluating the stock’s undervaluation thesis. The 4.2% intraday gain has pushed shares above key technical levels, sparking a debate between short-term volatility and long-term growth potential.

Lynozyfic Trial Success Ignites Investor Optimism
Regeneron’s 4.2% surge is directly tied to preliminary data from a mid-stage trial of Lynozyfic, its dual-target antibody therapy for multiple myeloma. The drug eradicated residual cancer cells in all 18 participants, potentially replacing grueling bone marrow transplants. This breakthrough positions Lynozyfic as a first-line treatment, with Dr. C. Ola Landgren noting the possibility of 'cure-like' outcomes. The data, presented at the American Society of Hematology, has triggered a re-rating of Regeneron’s pipeline, particularly as EYLEA competition and manufacturing risks now appear secondary to this transformative therapy’s potential.

Options Playbook: Leveraging Volatility with High-Gamma Contracts
• 200-day MA: $598.90 (well below current price)
• RSI: 41.89 (oversold territory)
• MACD: 18.27 (bullish divergence from signal line at 29.23)
• Bollinger Bands: Price at $721.7 (near lower band at $657.88, suggesting potential rebound)

Key levels to watch: 1) $722.52 intraday high (breakout confirmation), 2) $705 support (30D moving average at $700.77), and 3) $692.5 intraday low (psychological floor). The 52-week range (476.49–790.98) suggests ample room for consolidation before testing the 52W high. High-gamma options like REGN20251219C720 and REGN20251219C725 offer asymmetric upside potential.

• REGN20251219C720
- Strike: $720, Expiry: 12/19, IV: 17.97%, Leverage: 65.22%, Delta: 0.5919, Theta: -1.9413, Gamma: 0.0180, Turnover: 4005
- IV (Implied Volatility): 17.97% (moderate)
- Leverage: 65.22% (high)
- Delta: 0.5919 (moderate sensitivity to price moves)
- Theta: -1.9413 (significant time decay)
- Gamma: 0.0180 (high sensitivity to price acceleration)
- Turnover: 4005 (liquid)
- Payoff at 5% upside ($757.785): $37.785/share. This contract balances leverage and liquidity, ideal for a 5–7 day holding period.

• REGN20251219C725
- Strike: $725, Expiry: 12/19, IV: 15.40%, Leverage: 100.55%, Delta: 0.4980, Theta: -1.6587, Gamma: 0.0216, Turnover: 7309
- IV: 15.40% (moderate)
- Leverage: 100.55% (extreme)
- Delta: 0.4980 (moderate sensitivity)
- Theta: -1.6587 (moderate time decay)
- Gamma: 0.0216 (very high sensitivity)
- Turnover: 7309 (high liquidity)
- Payoff at 5% upside: $32.785/share. This contract offers explosive leverage for aggressive bulls, though its high gamma demands precise timing.

Aggressive bulls should consider REGN20251219C725 into a breakout above $722.52. If $705 support holds, REGN20251219C720 offers a safer entry with 10-day time decay cushion.

Backtest Regeneron Stock Performance
Regeneron (REGN) experienced a notable intraday surge of approximately 4% on December 10, 2022. To evaluate the performance of REGN following this surge, we will analyze its stock price movement from December 10, 2022, to the present day.1. Initial Surge: The 4% intraday surge on December 10, 2022, was a significant event that likely influenced investor sentiment and market dynamics.2. Post-Surge Performance: It is essential to examine how REGN's stock price has performed in the subsequent months, especially considering any relevant news or events that may have impacted its trajectory.3. Recent News: REGN has recently announced the approval of Libtayo for advanced or recurrent cervical cancer, which could have positively influenced the stock. Additionally, the expanded use of Dupixent received a positive recommendation from the EMA, indicating potential growth for this drug.4. Market Reaction: The market's reaction to these announcements, as well as broader market trends and economic indicators, will have played a role in shaping REGN's performance since the surge.By analyzing the stock price changes from December 10, 2022, to the present day, we can assess the lasting impact of the 4% surge and evaluate REGN's overall performance in the context of recent news and market conditions.

Bull Case Confirmed: Target $768.36 Fair Value by Year-End
The Lynozyfic data has rekindled investor confidence in Regeneron’s long-term growth trajectory, with the $768.36 fair value target now within striking distance. Technicals suggest a continuation of the 21.89% 90-day rally, supported by a 15.54x dynamic P/E and a 3.16% short interest ratio (below sector peers). Watch for a breakout above $722.52 to confirm the bull case. Meanwhile, Pfizer (PFE)’s 1.52% intraday gain in the healthcare sector provides additional tailwinds. Position now with high-gamma options or hold for a potential 52-week high retest.