Co-Diagnostics (CODX) Surges 199%: A Saudi JV Ignites Biotech's Next Frontier?

Summary
• Co-Diagnostics (CODX) rockets 199.4% to $1.05, hitting 52-week high of $1.26
• Joint venture with Arabian Eagle in Saudi Arabia sparks regional expansion
• Turnover surges 1,953% as $10M capital raise and SFDA regulatory path drive optimism

Co-Diagnostics (NASDAQ: CODX) has ignited a market frenzy, surging 199.4% to $1.05 in a single session. The biotech stock’s meteoric rise follows the announcement of a landmark joint venture with Arabian Eagle Manufacturing to localize Co-Dx PCR technology across 19 Middle East and North Africa (MENA) countries. With turnover exploding 1,953% and a $10M capital raise in play, investors are scrambling to assess the implications of this strategic move for a company trading at a -1.66 P/E ratio.

Saudi JV Unlocks Regional Expansion Potential
Co-Diagnostics’ 199.4% surge stems from a definitive agreement to form CoMira Diagnostics with Arabian Eagle Manufacturing in Saudi Arabia. This joint venture grants exclusive licensing rights to Co-Dx PCR technology, including the upcoming point-of-care platform, across 19 MENA countries. The partnership aligns with Saudi Vision 2030’s industrial diversification goals and leverages Arabian Eagle’s regulatory expertise to secure Saudi Food & Drug Administration (SFDA) clearance—a critical gateway to broader regional market access. With clinical evaluations for tuberculosis, HPV, and respiratory tests slated for late 2025, the deal represents a strategic pivot from niche diagnostics to scalable regional manufacturing, fueling speculative buying.

Options Volatility and ETF Positioning: Navigating the Biotech Surge
• 200-day MA: $0.4029 (above) • RSI: 44.78 (neutral) • MACD: -0.0078 (bearish) • Bollinger Bands: $0.3096–$0.4170 (wide)

CODX’s technicals reveal a short-term bullish breakout against a long-term range. The stock has pierced the 52-week high of $1.26 and is trading 195% above its 200-day moving average. RSI at 44.78 suggests no immediate overbought conditions, while MACD remains bearish (-0.0078). The Bollinger Bands ($0.3096–$0.4170) indicate extreme volatility, with the current price far exceeding upper bounds. For options, focus on near-term contracts with high leverage and moderate delta to capitalize on momentum.

• CODX20251031C1 (Call, $1 strike, Oct 31):
- IV: 536.98% (extreme volatility)
- LVR: 4.02% (high leverage)
- Delta: 0.6267 (moderate directional sensitivity)
- Theta: -0.02697 (rapid time decay)
- Gamma: 0.5995 (high sensitivity to price moves)
- Turnover: $185,580 (liquid)
- Payoff (5% upside): $0.0525/share
- Why: High gamma and moderate delta make this ideal for a short-term rally, with IV reflecting market anticipation of SFDA progress.

• CODX20251107C1 (Call, $1 strike, Nov 7):
- IV: 404.69% (high volatility)
- LVR: 3.47% (moderate leverage)
- Delta: 0.6464 (moderate directional sensitivity)
- Theta: -0.01263 (slower decay)
- Gamma: 0.5041 (high sensitivity)
- Turnover: $24,937 (liquid)
- Payoff (5% upside): $0.0525/share
- Why: Slightly lower IV but higher liquidity and gamma position it as a safer play for a mid-term breakout.

Action: Aggressive bulls may consider CODX20251031C1 into a bounce above $1.10, while cautious investors should monitor SFDA clearance progress and clinical trial timelines. If $1.26 retests, CODX20251107C1 offers a balanced risk-reward profile.

Backtest Co-diagnostics Stock Performance

Bullish Momentum Intensifies: Position for the Next Wave
Co-Diagnostics’ 199.4% surge is a high-stakes bet on Saudi-led regional expansion, with the joint venture’s regulatory and manufacturing execution as key variables. While technicals suggest a short-term overextension (MACD bearish, RSI neutral), the stock’s 1,953% turnover surge and $10M capital raise signal strong institutional interest. Investors should watch the $1.26 52-week high as a critical resistance level and the SFDA clearance timeline for validation. For context, sector leader Thermo Fisher (TMO) fell -1.46% today, highlighting CODX’s divergence from broader biotech trends. Act now: Buy CODX20251031C1 for a 5% upside target or short-term cash-secured puts if $1.05 breaks. The next 30 days will determine whether this is a speculative parabolic move or a sustainable inflection point.