Wheeling and Dealing Hologic Stock Hits Record Highs

Earlier this week, the company acquired Somatex

Assistant Editor
Jan 6, 2021 at 10:59 AM
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The shares of Hologic Inc (NASDAQ:HOLX) are up 2.4% at $77.87 at last check, amid news that the medical technology company will acquire Biotheranostics, a developer of diagnostic, prognostic, and predictive tests supporting cancer patient treatment, for $230 million. Hologic also acquired Somatex Medical Technologies, a leader in biopsy site markers, for $64 million earlier this week, and has exhibited tremendous growth this year due to COVID-19 testing sales.

Out of the gate today, Hologic stock scored a record high of $79.37, and is on track for its fifth-straight win. The shares have carved out a channel of higher highs since early September, with their ascending 80-day moving average containing pullbacks along the way.

Today's news has the typically quieter options pits buzzing. So far, 765 calls have crossed the tape, which is double what's typically so far at this point in the day. The February 80-strike call is the most popular, with traders betting on more upside for HOLX by next month. 

Now is certainly an opportune time to speculate on the medical device stock's next move with options. HOLX's Schaeffer's Volatility Index (SVI) of 43% sits in the 23rd percentile of its annual range, meaning options players are pricing in incredibly low volatility expectations right now. What's more, the equity's Schaeffer's Volatility Scorecard (SVS) sits at 76(out of 100), indicating the equity has tended to exceed option trader's volatility expectations during the past year. 

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