GNMK Grabs Fresh Highs on Billion-Dollar Buyout Buzz

The stock is also brushing off a downgrade from Needham to "hold from "buy"

Deputy Editor
Mar 15, 2021 at 3:12 PM
facebook X logo linkedin


GenMark Diagnostics Inc (NASDAQ:GNMK) stock is surging today, up 29.1% to trade at $23.88 at last check, after news of its buyout. Specifically, Swiss pharmaceutical company Roche Holding AG (ROG) will acquire GenMark Diagnostics for $1.8 billion in cash. The merger is expected to close within the second quarter of 2021, and will give Roche a boost in the diagnostics department. A downgrade wasn't enough to deter the stock either, after Needham today cut its rating to "hold" from buy."

Starting the week coming off of four straight weekly losses, today's bull gap has GNMK trading at record-breaking levels, earlier hitting $24. Year-over-year, the equity is up an impressive 382.3%. 

Though shorts have been running for the exits, per short interest's 40.2% drop during the most recent reporting period, it still represents 7.4% of the stock's available float. In other words, it would take over four days to buy back these bearish bets, at GNMK's average pace of trading.  

Options traders have been quick to chime in after today's events, with 7,317 calls and 3,016 puts across the tape so far -- 18 times what's typically seen at this point. The April 25 call is the most popular, followed closely by the March 25 call, with new positions being opened at both. This shows plenty of traders betting on even more upside for GNMK in the coming week and month.

Furthermore, now looks like a good time to weigh in on GenMark Diagnostics stocks next move with options. The stock's Schaeffer's Volatility Index (SVI) of 100% stands higher than just 7% of all other readings in its annual range, implying that options players are pricing in relatively low volatility expectations at the moment. 

 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI