Sarepta Skyrockets 20.67%—What’s Fueling This Regulatory Breakthrough?

Summary
• Sarepta (SRPT) surges 20.67% intraday after FDA greenlights resumption of Elevidys shipments
• Intraday high hits $18.29, low dips to $16.40 amid volatile trading session
• 48.9 million shares traded, turnover rate exceeds 52% of average volume
• Biotech sector reels from recent safety concerns, but Sarepta defies bearish trends

Biopharma giant Sarepta Therapeutics has roared back into the spotlight, with its shares surging over 20% in a single trading session. The rally follows a critical regulatory decision by the FDA to allow resumption of shipments for its controversial gene therapy, Elevidys. Traders are scrambling to parse the implications for Sarepta’s near-term cash flow and its ability to retain market access for its flagship product. With a 52-week high of $145 starkly contrasting today’s $16.725 price, the stock’s volatility underscores the sector’s precarious balance between innovation and risk.

FDA Clears Elevidys Resumption, Easing Regulatory Uncertainty
Sarepta’s explosive 20.67% intraday surge stems directly from the FDA’s decision to permit the resumption of shipments for its Duchenne muscular dystrophy gene therapy, Elevidys. The agency’s review concluded that the recent death of an 8-year-old Brazilian patient was unrelated to the drug, clearing the path for shipments to ambulatory patients. This reversal reverses a week-long voluntary pause and mitigates the risk of market withdrawal, which had sent the stock into freefall. The move also eases immediate financial pressure on Sarepta, as it must fulfill payments to partner Arrowhead and maintain access to debt facilities. Analysts note the FDA’s decision eliminates the most immediate threat to Elevidys’ commercial viability but leaves lingering reputational damage to address.

Biotech Sector Volatility Intensifies as Amgen Trails
The biotechnology sector, represented by Amgen (AMGN) at +0.74%, remains broadly cautious despite Sarepta’s rebound. Amgen’s muted performance highlights the sector’s struggle to balance innovation with regulatory scrutiny. While Amgen’s stable growth contrasts with Sarepta’s rollercoaster, the broader biotech market remains sensitive to safety-related news. Sarepta’s revival, however, demonstrates the sector’s potential for sharp rebounds when regulatory risks are mitigated. Investors should watch whether Amgen’s resilience can anchor sentiment as biotech stocks face ongoing volatility.

High-Leverage Options and ETF Strategy in a Volatile Biotech Landscape
• MACD: -3.756 (below signal line -3.997)
• RSI: 37.04 (oversold)
• Bollinger Bands: Price at $16.725 (near lower band $11.12)
• 200-day MA: $82.60 (far above current price)
• Key Support/Resistance: $16.97–$19.49

With technicals indicating oversold conditions and a bearish MACD histogram, Sarepta presents a high-risk, high-reward setup. Traders should monitor the $16.97 support level and $19.49 resistance as critical inflection points. Short-term momentum favors long calls, given the stock’s volatility and the likelihood of continued regulatory-driven swings.

Top Options:
• SRPT20250808C17 (Call, $17 strike, Aug 8 expiry):
- IV: 159.26% (elevated volatility)
- Delta: 0.529 (moderate sensitivity)
- Theta: -0.1119 (rapid time decay)
- Gamma: 0.086 (high sensitivity to price changes)
- Turnover: 113,611
- Payoff: $0.56 per share (5% upside to $17.56)
- Why it stands out: High IV and gamma make this call ideal for a sharp rebound.

• SRPT20250815C17.5 (Call, $17.5 strike, Aug 15 expiry):
- IV: 130.82% (moderate volatility)
- Delta: 0.494 (balanced sensitivity)
- Theta: -0.0699 (slower decay)
- Gamma: 0.082 (strong response to price swings)
- Turnover: 220,017
- Payoff: $1.06 per share (5% upside to $17.56)
- Why it stands out: Liquidity and moderate IV position this as a safer long-term call.

Aggressive bulls may consider SRPT20250808C17 into a breakout above $17.50, while cautious traders should target SRPT20250815C17.5 for a more measured rally.

Backtest Sarepta Stock Performance
The 21% intraday surge in SRPT has historically led to underwhelming short-to-medium-term performance. While the 3-day win rate is 50.81%, the returns dip to -1.85% over 10 days and -4.00% over 30 days, indicating significant volatility post-intraday spike. The maximum return during the backtest period was only -0.10%, suggesting that holding SRPT after a strong intraday performance does not consistently translate to further gains.

Sarepta’s Regulatory Rebound—Act on Key Levels Now
Sarepta’s dramatic reversal hinges on its ability to rebuild trust after recent safety incidents and maintain FDA alignment. Immediate focus should remain on the $16.97 support level and $19.49 resistance. A break above $19.49 could reignite bullish momentum, while a drop below $16.97 risks renewed bearish pressure. Biotech sector leader Amgen (AMGN) at +0.74% offers a benchmark for broader market sentiment. Investors should prioritize the SRPT20250815C17.5 call for a measured rally or SRPT20250808C17 for aggressive short-term gains. Watch for regulatory updates and Elevidys patient uptake data as critical catalysts.