Sarepta (SRPT) Soars 18% in Intraday Surge—What’s Fueling the Momentum?

Summary
• Sarepta’s stock jumps 17.9% intraday, trading at $21.67 with a 52-week high of $150.48
• Intraday range spans $20.94 to $22.86 amid 16.98M turnover
• Restructuring plan and FDA black box warning spark market speculation

Biotech stock Sarepta Therapeutics (SRPT) has ignited a 18% intraday rally, driven by a strategic overhaul and regulatory developments. The surge follows a 500-employee layoff and a black box warning for its Duchenne muscular dystrophy drug Elevidys, signaling a pivotal shift in the company’s financial and operational strategy.

Restructuring Plan and Black Box Warning Spur Volatility
Sarepta’s dramatic price surge stems from a strategic restructuring plan announced late Wednesday, including 500 layoffs and program cuts to prioritize high-impact initiatives. The move aims to align the company with 2027 financial goals while addressing safety concerns tied to Elevidys, which now carries an FDA-mandated black box warning for acute liver failure. The restructuring, coupled with CEO Doug Ingram’s emphasis on long-term viability, has reignited speculative interest in a stock that has lost over 75% of its value in 2025.

Biotech Sector in Turbulent Waters as Sarepta Restructures
The broader biotech sector remains volatile amid widespread cost-cutting. GSK and Roche have also announced R&D layoffs, while the FDA’s heightened regulatory scrutiny of gene therapies amplifies sector-wide uncertainty. Sarepta’s restructuring mirrors industry trends but stands out due to its high-profile safety controversies and the potential for a rebound in investor sentiment.

Options Playbook: Capitalizing on SRPT’s Volatility
• 200-day average: 86.91 (well below) • RSI: 55.81 (neutral) • MACD: -3.97 (bearish) • Bollinger Bands: $16.18–$21.03 (current price near upper band)

Key levels to monitor include the 30D support at $17.10 and 200D resistance at $19.52. With implied volatility spiking to 80–100% on near-term options, traders should focus on short-term contracts with high gamma and theta for directional bets. Aggressive bulls may consider SRPT20250725C21.5 and SRPT20250725C22 for leveraged exposure.

• SRPT20250725C21.5 (Call):
- Strike: $21.50, Expiry: 7/25
- IV: 82.72% (high), Leverage: 17.38%, Delta: 0.56, Theta: -0.116, Gamma: 0.1397
IV: Elevated volatility boosts premium; Delta: Moderate sensitivity to price moves; Theta: Aggressive time decay; Gamma: High sensitivity to volatility shifts.
• SRPT20250725C22 (Call):
- Strike: $22.00, Expiry: 7/25
- IV: 81.77% (high), Leverage: 21.73%, Delta: 0.49, Theta: -0.1097, Gamma: 0.1429
IV: Strong volatility tailwinds; Delta: Balanced directional exposure; Theta: Sharp time decay; Gamma: Exceptional sensitivity to price swings.
If $22.50 breaks, SRPT20250725C22 offers a leveraged play on a potential rebound.

Backtest Sarepta Stock Performance
The backtest of SRPT's performance after an intraday surge of 18% shows mixed results. While the stock experienced a positive surge, it struggled to maintain gains in the short term. The 3-day win rate was 45.70%, the 10-day win rate was 47.49%, and the 30-day win rate was 48.21%, indicating a higher probability of positive returns in the short term. However, the average returns over these periods were negative, with a 3-day return of -0.17%, a 10-day return of -0.36%, and a 30-day return of 0.04%. The maximum return during the backtest was 0.19%, which occurred on day 20, suggesting that while there was some upside potential, it was limited.

Act Fast: Sarepta’s Restructuring Could Define Its Trajectory
The intraday rally reflects a mix of short-term optimism and lingering doubts about Sarepta’s long-term viability. While the restructuring plan addresses immediate financial pressures, the FDA’s safety concerns and sector-wide cost-cutting suggest a bumpy road ahead. Investors should watch the $22.50 retest and Amgen’s (-0.3%) performance as sector barometers. For now, SRPT20250725C22 remains a high-conviction play for those betting on a near-term bounce.