Option Care Stock Surges on $5.8 Billion Takeover Agreement

Option Care Health (OPCH) shares surged on Tuesday, rising 32.88% to $31.055 by 10:00 ET. The spike followed reports that McKesson and Clayton Dubilier & Rice (CD&R) agreed to acquire the company for $32.05 per share, valuing the deal at $5.8 billion. The news overshadowed earlier discussions about the company’s valuation, which had questioned whether its stock remained undervalued.

The stock’s rally pushed key technical indicators into overbought territory. The daily RSI14 reached 83.76, well above the 70 threshold, while the MACD histogram turned positive at 0.44. Price action also confirmed the breakout, with OPCH trading above its EMA20, EMA50, and EMA200. Similarly, hourly and 15-minute charts showed extreme overbought conditions, though these were attributed to the gap triggered by the takeover news rather than typical market exhaustion.

For the bullish outlook to hold, analysts noted that the stock must maintain its position above key support levels, including the daily EMA20 at $24.03 and the hourly EMA200 at $23.53. A reversal could occur if the price falls below these levels, particularly if it drops back toward the daily pivot at $23.1. The $32.05 acquisition price remains a critical level, with investors watching to see if the stock stabilizes near that figure or experiences a pullback before the session closes.