Stellantis Skyrockets 5.375% – Is a Strategic Turnaround Fueling This Rally?

Summary
• Stellantis (STLA) surges 5.38% intraday to $10.095, marking a 5.375% rally from $9.58 open
• CEO Antonio Filosa appoints Renault’s Gilles Vidal to lead European design, signaling a revival push
• Mokka GSE EV production set to begin, showcasing EV capabilities amid $2.7B first-half losses

Stellantis is defying sector trends with a sharp intraday rally, driven by strategic executive hires and EV product launches. The stock’s 5.375% surge from $9.58 to $10.095 reflects market optimism over its pivot under Filosa. With the Mokka GSE EV production and Vidal’s appointment, the automaker is signaling a shift to address stagnant European markets and Chinese EV competition.

Strategic Hires and EV Push Drive Stellantis Rally
Stellantis’ intraday surge stems from a strategic overhaul under new CEO Antonio Filosa. The appointment of Gilles Vidal, Renault’s former design chief, to lead European design efforts marks a critical step in reviving the brand’s identity. Vidal’s return to Stellantis—after a stint at Renault—signals Filosa’s focus on re-energizing European brands like Peugeot and Opel. Simultaneously, the production of the Mokka GSE, an all-electric performance variant, underscores Stellantis’ commitment to EV innovation. These moves counter its first-half $2.7B net loss and address stagnant demand in Europe, where Chinese EVs like BYD are gaining traction. The market is interpreting these actions as a reversal of the company’s recent struggles, with investors betting on a turnaround under Filosa’s leadership.

Automotive Sector Gains Momentum as Stellantis Outperforms Ford
The broader automotive sector is mixed, with Ford (F) rising 1.91% on improved production outlooks. However, Stellantis’ 5.375% rally far outpaces its peers, reflecting heightened confidence in its strategic shifts. While Ford focuses on ICE revival with the Hemi V-8, Stellantis is pivoting toward EVs with the Mokka GSE and hybrid programs. This divergence highlights Stellantis’ aggressive repositioning, contrasting with Ford’s incremental approach.

Options Playbook: Leveraging Stellantis’ Volatility with Gamma-Driven Contracts
• 200-day MA: $11.79 (far above current price), RSI: 41.20 (oversold), MACD: -0.109 (bearish), Bollinger Upper Band: $10.697 (near term resistance)

Stellantis is trading near its 52W low of $8.393 but shows short-term bullish momentum. The $9.873 middle Bollinger band and 30D MA at $9.828 suggest support, while the 200D MA at $11.79 remains a critical long-term resistance. With RSI in oversold territory and MACD signaling divergence, a rebound is likely. Two options stand out for gamma-driven plays:

• STLA20250801C10: Call option with strike $10, expiring 2025-08-01. IV: 60.44% (moderate), Leverage Ratio: 24.65%, Delta: 0.5607 (moderate), Theta: -0.000628 (low decay), Gamma: 0.4352 (high sensitivity). Turnover: 9,284.
Payoff at 5% upside (target $10.595): $595 per contract.
Strong gamma and moderate delta make this ideal for a short-term rally. Low theta ensures minimal time decay, aligning with near-term catalysts like Mokka GSE production.

• STLA20250801P10: Put option with strike $10, expiring 2025-08-01. IV: 61.98% (moderate), Leverage Ratio: 31.58%, Delta: -0.4384 (moderate), Theta: -0.036166 (high decay), Gamma: 0.4245 (high sensitivity). Turnover: 3,610.
Payoff at 5% upside (target $10.595): $595 per contract.
High gamma and moderate delta offer asymmetric potential. Theta decay is a risk, but the current rally suggests limited downside.

Aggressive bulls may consider STLA20250801C10 into a bounce above $10.50.

Backtest Stellantis Stock Performance
The backtest of STLA's performance after a 5% intraday surge shows mixed results. While the 10-day and 30-day win rates are high at 100%, the 3-day win rate is 0%, indicating that the stock experienced a short-term dip immediately following the surge. The maximum return during the backtest period was 4.14%, which occurred on day 51, suggesting that the stock took some time to reach its peak after the initial surge.

Stellantis’ Strategic Moves Signal a Pivotal Turn – Investors Should Monitor Key Levels
Stellantis’ rally is driven by strategic hires and EV product launches, but the 52W low at $8.393 remains a looming risk. The $10.50 resistance and $9.50 support levels will be critical in determining whether this is a sustainable rebound. With Ford (F) rising 1.91%, the sector is cautiously optimistic. Investors should watch the Mokka GSE’s production timeline and Filosa’s ability to attract talent. Watch for a break above $10.50 or a retest of $9.50 support to gauge the move’s sustainability.