Neogenomics Surges 1.7% on Legal Victory and Product Launch Amid Volatile Trading Conditions

Summary
• Court rules in favor of Neogenomics in patent infringement lawsuit against Natera
• Launch of PanTracer LBx expands genomic profiling access with liquid biopsy
• Intraday price hits $9.465 high, up 1.71% from $9.03 previous close
• Turnover surges to 2.06 million shares, signaling renewed institutional interest

Neogenomics (NEO) is trading at $9.185 as of 7:14 PM ET, rebounding from a 9.02 intraday low to a 9.465 high. The stock’s 1.71% gain follows a landmark patent ruling and the launch of a new genomic test, sparking a surge in volume and volatility. With the 52-week high at $19.115 still distant, investors are weighing the legal and product-driven catalysts against broader sector headwinds.

Legal Win and Product Innovation Drive Short-Term Optimism
The stock’s intraday rally is directly tied to two key developments: a court ruling dismissing Natera’s patent claims with prejudice and the launch of PanTracer LBx. The legal victory removes a major overhang, allowing Neogenomics to commercialize its RaDaR® ST assay without litigation risk. Meanwhile, the new liquid biopsy test expands access to genomic profiling, addressing unmet demand in oncology diagnostics. These events have reignited investor confidence in the company’s ability to execute its growth strategy, despite a 56% decline from its 52-week high.

Options Playbook: Leveraging Volatility with High-Gamma Contracts
• MACD: 0.4046 (bullish divergence), Signal Line: 0.3458, Histogram: 0.0588
• RSI: 65.38 (neutral to overbought), Bollinger Bands: 9.28 (upper), 8.2855 (middle), 7.2874 (lower)
• 200-day MA: 9.4661 (above current price), 30-day MA: 8.1437 (below)

Technical indicators suggest a short-term bullish trend amid a long-term ranging pattern. The stock is trading near its 200-day moving average, with RSI hovering near overbought territory. For options traders, the focus is on high-gamma, high-leverage contracts with moderate delta to capitalize on potential breakouts. Two top picks from the options chain are:

• NEO20251017C9 (Call, $9 strike, Oct 17 expiry):
- Implied Volatility: 77.03% (elevated)
- Leverage Ratio: 15.64% (moderate)
- Delta: 0.605 (moderate sensitivity)
- Theta: -0.0433 (rapid time decay)
- Gamma: 0.3274 (high sensitivity to price movement)
- Turnover: 428 (liquid)
- Payoff (5% upside): $0.4575 per share
This contract offers a balance of leverage and liquidity, ideal for a short-term bullish bet as the stock tests its 9.465 intraday high.

• NEO20251121C9 (Call, $9 strike, Nov 21 expiry):
- Implied Volatility: 76.30% (elevated)
- Leverage Ratio: 8.31% (moderate)
- Delta: 0.5968 (moderate sensitivity)
- Theta: -0.0147 (moderate time decay)
- Gamma: 0.1566 (moderate sensitivity)
- Turnover: 78,420 (highly liquid)
- Payoff (5% upside): $0.4575 per share
This longer-dated option provides more time for the stock to rally, with high turnover ensuring ease of entry/exit. Aggressive bulls may consider this for a mid-term play on the 52-week high retest.

Action Insight: If $9.465 breaks, NEO20251017C9 offers immediate upside potential. For a more conservative approach, NEO20251121C9 balances time and volatility.

Backtest Neogenomics Stock Performance
Below is the interactive event-study report. (We approximated an “intraday 2 % surge” with a ≥ 2 % close-to-close gain. 2022-01-03 was used as the first trading day of 2022.)Key take-aways • 235 events met the ≥ 2 % criterion. • Average performance after such surges was slightly negative through 30 trading days, with no statistically significant edge observed. Feel free to explore the interactive table and return curves in the module; let me know if you’d like a different holding window, a refined surge definition (e.g., intraday high vs. previous close), or additional risk filters.

Neogenomics at a Crossroads: Legal Clarity and Product Momentum Fuel Near-Term Optimism
The stock’s 1.71% gain reflects a pivotal shift in sentiment following the patent ruling and product launch. While the 52-week high remains a distant target, the removal of litigation risk and expansion of genomic offerings position Neogenomics to capitalize on its core strengths. Investors should monitor the $9.465 resistance level and the options chain for liquidity-driven moves. Meanwhile, sector leader Labcorp (LH) is down 1.01%, underscoring the need to differentiate Neogenomics’ catalysts from broader healthcare sector trends. For now, the focus is on execution: Will the PanTracer LBx drive revenue growth, and can the stock sustain its current momentum ahead of the October 28 earnings report? Watch for a breakout above $9.465 or a retest of the $7.2874 support level.