SELLAS Life Sciences (SLS) Surges 11.3% on Regulatory Milestone Proximity and Bullish Technicals

Summary
• SELLAS Life Sciences (SLS) trades at $4.1959, up 11.297% intraday, hitting a 52-week high of $4.66
• 72 out of 80 prespecified events in the Phase 3 REGAL trial have been reached, signaling potential final analysis
• Options volume surges with 4,749 contracts traded on the SLS20260116C4 call option

SELLAS Life Sciences (SLS) is experiencing a dramatic intraday rally, driven by proximity to a critical regulatory milestone in its Phase 3 REGAL trial for galinpepimut-S (GPS). The stock’s 11.3% surge has pushed it to a 52-week high, with technical indicators and options activity amplifying bullish momentum. Analysts and retail traders are closely watching whether the trial’s event-driven timeline will unlock transformative data for the biotech sector.

REGAL Trial Nears Final Analysis Threshold
The surge in SLS is directly tied to the Phase 3 REGAL trial’s progress, where 72 out of 80 required patient deaths have been recorded as of Dec. 26, 2025. This event-driven trial means slower death accrual could reflect extended patient survival—a positive sign for GPS’s efficacy. CEO Angelos Stergiou emphasized that every passing month increases the probability of a successful study, as highlighted by key opinion leaders. The market is interpreting this delay as a potential indicator of GPS’s impact, fueling speculative buying and options activity.

Biotech Sector Volatility Amid SLS Outperformance
While SLS surges, the broader biotech sector remains mixed. Amgen (AMGN), the sector leader, trades flat with a 0.3269% intraday gain, underscoring SLS’s outperformance. The divergence highlights SLS’s speculative nature versus Amgen’s stable, earnings-driven profile. SLS’s rally is driven by trial-specific optimism, whereas Amgen’s muted move reflects post-earnings consolidation and macroeconomic caution.

Options and ETF Plays for SLS’s Volatile Trajectory
• MACD: 0.438 (bullish), Signal Line: 0.289, Histogram: 0.149 (positive divergence)
• RSI: 93.72 (overbought), Bollinger Bands: Upper $3.59, Middle $2.37, Lower $1.14
• 200-day MA: $1.73 (far below current price)

SELLAS’s technicals suggest a short-term bullish breakout, with key resistance at $4.66 (52-week high) and support at $4.10 (intraday low). The RSI’s overbought condition warns of potential pullbacks, but the MACD’s positive divergence and high gamma options indicate strong near-term momentum. Aggressive bulls should target the $4.66 level, while cautious traders may hedge with puts.

Top Options Picks:
• SLS20260116C4 (Call): Strike $4, Expiry 2026-01-16, IV 109.97%, Delta 0.601, Theta -0.0175, Gamma 0.4197, Turnover $290,647
- High leverage (9.59%) and gamma (0.4197) amplify gains if SLS breaks $4.66. Projected 5% upside (to $4.40) yields a $0.40 payoff.
• SLS20260116C4.5 (Call): Strike $4.5, Expiry 2026-01-16, IV 25.95%, Delta 0.055, Theta -0.0014, Gamma 0.5151, Turnover $169,914
- High gamma (0.5151) and moderate IV (25.95%) position this as a speculative play for a $4.66 breakout. 5% upside yields $0.10 payoff.

Action: Aggressive bulls may consider SLS20260116C4 into a breakout above $4.66, while SLS20260116C4.5 offers high gamma exposure for a sharp rally.

Backtest SELLAS Life Sciences Stock Performance
The backtest of SLS's performance after a 11% intraday increase from 2022 to now shows mixed results. While the stock experienced a maximum return of 5.43% on January 58, the 3-day win rate is 48.92%, the 10-day win rate is 52.80%, and the 30-day win rate is 52.16%. This suggests that while the stock had opportunities for gains, they were not consistently realized.

Position for SLS’s Breakout or Reversal: Immediate Steps
SELLAS’s trajectory hinges on the REGAL trial’s final analysis and its ability to sustain momentum above $4.66. The 52-week high and overbought RSI suggest a potential pullback, but the options chain’s high gamma and leveraged calls indicate strong conviction in a continued rally. Investors should monitor Amgen’s 0.3269% intraday gain for sector sentiment but focus on SLS’s $4.66 level. A breakout confirms GPS’s potential, while a breakdown to $4.10 triggers defensive positioning. Act now: Target SLS20260116C4 for a $4.66 breakout or short-term puts for downside protection.