ARS Pharmaceuticals (SPRY) Surges 17.9% on China Approval and Competitive Tailwinds

Summary
• ARS Pharmaceuticals (SPRY) gaps up 17.9% to $12.91, driven by China’s NMPA approval for Neffy and Aquestive’s Anaphylm regulatory setback.
• The stock trades at a 17.9% premium to its 200-day moving average of $12.77, with intraday volume surging to 4.78 million shares.
• Analysts at Roth Capital and William Blair highlight SPRY’s competitive positioning in the needle-free epinephrine market.

Today’s 17.9% rally in SPRY reflects a confluence of regulatory milestones and competitive dynamics. The China approval for Neffy 2 mg and Aquestive’s FDA setback have redefined the stock’s risk-reward profile. With a 52-week high of $18.90 still in reach, the move underscores the sector’s focus on global expansion and regulatory execution.

China Approval and Competitive Tailwinds Drive SPRY's 17.9% Surge
ARS Pharmaceuticals’ 17.9% intraday surge stems from two pivotal catalysts: China’s NMPA approval for Neffy 2 mg and Aquestive Therapeutics’ (AQST) regulatory setback with Anaphylm. The NMPA approval grants SPRY access to a $200M+ Chinese market for epinephrine nasal spray, with Pediatrix Therapeutics handling commercialization. Simultaneously, the FDA’s rejection of Aquestive’s Anaphylm NDA removes a near-term competitor, solidifying Neffy’s dominance in the needle-free epinephrine space. William Blair analysts noted this delay gives ARS critical time to establish Neffy’s market presence before potential future competition.

Pharma Sector Gains Momentum as SPRY Outpaces Peers
The broader pharmaceutical sector saw mixed momentum, with Pfizer (PFE) rising 0.73% on its U.S. drug pricing deal. However, ARS Pharmaceuticals outperformed peers, driven by its unique positioning in the allergy treatment niche. While J&J’s manufacturing announcements and Insmed’s sales beat drew attention, SPRY’s regulatory milestones and competitive tailwinds created a distinct narrative. The stock’s 17.9% move contrasts with the sector’s average 2-3% gains, highlighting its speculative appeal.

Options Playbook: Leveraging SPRY's Volatility with High-Gamma Contracts
• MACD: 0.421 (bullish divergence), Signal Line: 0.501 (bearish crossover), Histogram: -0.080 (bearish momentum)
• RSI: 60.58 (neutral zone), Bollinger Bands: $12.08 (upper), $10.97 (middle), $9.86 (lower)
• 200D MA: $12.77 (current price above), 30D MA: $10.52 (bullish divergence)

SPRY’s technicals suggest a short-term bullish setup with medium-term consolidation. The stock is trading above its 200-day moving average and within the upper Bollinger Band, indicating strong momentum. Key support lies at $12.20 (intraday low), while resistance is at $13.09 (intraday high).

Top Options Contracts:
1. SPRY20260116C12.5
• Type: Call, Strike: $12.50, Expiration: 2026-01-16
• IV: 93.41% (high volatility), Leverage: 14.29%, Delta: 0.6107 (moderate sensitivity), Theta: -0.0790 (rapid time decay), Gamma: 0.2156 (high sensitivity to price moves), Turnover: $43,390
• Payoff: At a 5% upside (target $13.56), payoff = max(0, $13.56 - $12.50) = $1.06 per share. This contract offers high leverage and gamma, ideal for short-term bullish bets.

2. SPRY20260220C12.5
• Type: Call, Strike: $12.50, Expiration: 2026-02-20
• IV: 94.56% (high volatility), Leverage: 6.95%, Delta: 0.6045 (moderate sensitivity), Theta: -0.0245 (moderate time decay), Gamma: 0.0923 (moderate sensitivity), Turnover: $134,983
• Payoff: At a 5% upside (target $13.56), payoff = max(0, $13.56 - $12.50) = $1.06 per share. This contract balances time decay and gamma, suitable for mid-term bullish exposure.

Trading Setup: Aggressive bulls should prioritize SPRY20260116C12.5 for its high gamma and leverage, while SPRY20260220C12.5 offers a safer, mid-term play. Both contracts benefit from SPRY’s current momentum and elevated volatility. Watch for a break above $13.09 to confirm the bullish trend.

Backtest ARS Pharmaceuticals Stock Performance
The performance of SPRY after an 18% intraday surge from 2022 to now has been backtested, revealing key insights into its trading strategy and market behavior. Here are the main findings:1. Frequency of Surge Events: There were 14 occurrences of an intraday jump of 18% or more during the backtest period.2. Backtest Result: The backtest result indicates the strategy's effectiveness in capturing these surges, providing a benchmark for evaluating SPRY's performance in similar market conditions.To further analyze SPRY's performance, consider the following factors:1. Market Conditions: Assess the broader market conditions during the surge events, including overall market trends and volatility, which can influence the performance of such intraday trading strategies.2. Strategy Consistency: Evaluate the consistency of SPRY's trading strategy over time, including the frequency and timing of its trades, to understand the factors contributing to its performance during these surge events.3. Risk Management: Review SPRY's risk management practices, including stop-loss amounts, volatility estimates, and transaction cost estimates, to gauge its ability to manage risk and capitalize on opportunities.By considering these factors, you can gain a comprehensive understanding of SPRY's performance after the 18% intraday surge from 2022 to now and make informed decisions about its trading strategy and market positioning.

Bullish Setup Confirmed: SPRY's 12.5-Strike Call as High-Leverage Play
SPRY’s 17.9% surge is underpinned by regulatory milestones and competitive advantages, positioning it as a high-conviction trade. The stock’s technicals and options activity suggest continued short-term momentum, with the 12.5-strike call options offering the highest leverage. Investors should monitor the $13.09 intraday high as a key resistance level; a break above this could trigger a retest of the 52-week high at $18.90. Meanwhile, sector leader Pfizer (PFE) rose 0.73% on its U.S. pricing deal, but SPRY’s catalyst-driven rally remains the standout story. Act now: Buy SPRY20260116C12.5 for a high-gamma, high-leverage play on the stock’s near-term upside.