Verisign Soared 6.96%—Is This the Dawn of a New Bullish Era?

Summary
• Verisign (VRSN) surged 6.96% intraday to $306.61, hitting its 52-week high of $307.66
• Q2 2025 earnings beat on revenue ($410M vs. $409.97M) and EPS ($2.21 vs. $2.20) fueled momentum
• Share repurchases ($163M) and a new $0.77/share dividend signal robust capital return strategy

Verisign’s stock is trading at its highest level in over a decade, driven by a combination of strong earnings, aggressive share buybacks, and a newly initiated dividend. The company’s Q2 performance, coupled with its leadership in domain name infrastructure, has ignited investor enthusiasm. However, a $267.84 analyst price target and lingering legal challenges with the .web domain introduce caution. The stock’s 56.14% total shareholder return over the past year outpaces the 31.2% US IT industry return, making it a standout in a volatile market.

Earnings, Dividend, and Share Buybacks Ignite Momentum
Verisign’s 7% intraday surge was catalyzed by its Q2 2025 earnings report, which highlighted a 5.9% revenue increase to $410 million and a $2.21 EPS beat. The company’s $0.77/share dividend, the first in its history, and $163 million in share repurchases during the quarter signaled a commitment to shareholder value. These moves, combined with a $1.5 billion share buyback authorization expansion, reinforced confidence in Verisign’s financial discipline. Additionally, the stock’s outperformance against the IT sector and its 62.6% year-to-date rally reflect optimism about its domain name growth and cybersecurity relevance.

Options Playbook: Leveraging Gamma and Theta for Aggressive Bulls
• 200-day MA: 233.85 (far below) • 30D MA: 284.22 (near) • RSI: 50.56 (neutral) • MACD: 1.41 (bullish) • Bollinger Bands: 279.50–291.29

Verisign’s technicals suggest a short-term bullish continuation. The 30D MA at $284.22 aligns with the 200D MA as a critical support zone, while the RSI hovering near 50 indicates neutral momentum. The MACD histogram’s positive divergence and Bollinger Bands’ tightening suggest a potential breakout. Aggressive bulls should target key resistance at $307.66 (52-week high) and watch for a breakdown below $288.12 (intraday low).

Top Option 1: VRSN20250919C320
• Call Option, $320 strike, 2025-09-19 expiry
• IV: 19.26% (reasonable) • Leverage: 63.83% • Delta: 0.327 • Theta: -0.143 • Gamma: 0.015 • Turnover: 113,259
Payoff: At 5% upside (target $321.94), profit = $321.94 - $320 = $1.94/share. This contract offers high leverage and moderate delta, ideal for a 4–5% price move before expiration.

Top Option 2: VRSN20250919C330
• Call Option, $330 strike, 2025-09-19 expiry
• IV: 21.36% (moderate) • Leverage: 95.75% • Delta: 0.223 • Theta: -0.115 • Gamma: 0.011 • Turnover: 24,778
Payoff: At 5% upside (target $321.94), profit = $0 (since $321.94 < $330 strike). This option is riskier but offers explosive potential if the stock breaks $330. Aggressive bulls should use these options in a tight-risk, high-reward strategy.

Hook: If $320 breaks, VRSN20250919C320 offers a 1.94x payoff in 19 days. Conservative traders may consider a diagonal spread to hedge theta decay.

Backtest Verisign Stock Performance
The backtest of VRSN's performance after an intraday percentage change of more than 7% shows mixed results. While the 3-day win rate is 53.49%, the 10-day win rate is slightly higher at 55.40%, and the 30-day win rate remains at 53.49%, indicating a moderate likelihood of positive returns in the short term. However, the maximum return during the backtest period was only 1.98%, which suggests that while there is a chance of gains, the potential upside is limited.

Act Now: Verisign’s Bull Case Is Live—But Time Is of the Essence
Verisign’s momentum appears sustainable as long as the stock holds above $288.12 and remains within its Bollinger Band range. The 52-week high at $307.66 and the 200D MA at $233.85 are critical levels to monitor. The sector leader, GoDaddy (GDDY), has seen a negligible 0.03% intraday move, suggesting Verisign’s rally is stock-specific. Investors should prioritize short-term call options like VRSN20250919C320 for aggressive plays or a core-position buy below $285. If the .web domain legal dispute resolves favorably by November, the stock could unlock new growth phases. Action: Target $320 as a key inflection point and consider a 200D MA retest as a risk-off signal.