Victoria’s Secret (VSCO) Soars 11.75% on Technical Breakout and Options Frenzy

Victoria’s Secret & Co. (VSCO) surged 11.75% on Thursday, marking its highest level since September 2025, with the stock climbing 14.60% over two days. The rally, driven by technical indicators and options trading activity, pushed shares to an intraday high of $25.095, reflecting renewed speculative interest in the retail sector.

The move is attributed to algorithmic buying triggered by a breakout above the 200-day moving average and the Bollinger Bands upper band. Momentum indicators, including a positive MACD crossover and a 52.87 RSI, reinforced the upward trend, suggesting short-term bullish pressure despite the absence of material corporate news. Traders appear to be capitalizing on these technical signals rather than fundamentals.

Options market activity further amplified the surge, with heavy call buying concentrated in the $24–$25 strike range. Options such as VSCO20250919C24 and VSCO20250919C25 saw significant volume spikes, indicating aggressive positioning for leveraged gains. These instruments, offering 14.29% to 20.83% leverage, have drawn traders seeking to exploit the stock’s volatility ahead of the 9/19 expiry. Strong gamma and theta decay dynamics suggest rapid acceleration if the rally persists.

Market sentiment appears skewed toward short-term speculation, with VSCO outperforming broader retail peers. Key resistance levels at $25.095 and $26.42 are now in focus, and a sustained breakout could reignite momentum toward the 52-week high of $48.73. However, risks remain, including potential pullbacks if the 200-day moving average is retested or if the RSI enters overbought territory. Traders are advised to monitor gamma exposure and decay rates to manage positions effectively.

The absence of fundamental catalysts means the rally’s durability hinges on continued algorithmic and speculative activity. While the current trajectory favors technical-driven gains, investors should remain cautious of market rotation or shifts in risk appetite that could disrupt the momentum. For now, VSCO remains a focal point for traders leveraging options strategies to capitalize on its breakout.