Co-Diagnostics Plummets 53.56%: What's Behind the Freefall?

Summary
• Co-Diagnostics (NASDAQ: CODX) surges into a joint venture with Saudi Arabian Eagle to localize its Co-Dx PCR platform
• Intraday price swings from $0.937 high to $0.545 low amid massive 58.5M turnover
• 52-week range of $0.2275–$1.55 highlights extreme volatility

Co-Diagnostics (CODX) is in freefall, plummeting 53.56% to $0.5851 as of 4:08 PM EDT. The stock’s dramatic intraday range and record turnover signal a pivotal moment for the molecular diagnostics firm. With a new Saudi joint venture and regulatory hurdles looming, investors are scrambling to decipher the catalysts behind this sharp selloff.

Saudi Joint Venture Sparks Volatility
The joint venture with Arabian Eagle, announced earlier today, initially drove optimism but quickly unraveled as investors grappled with regulatory uncertainties. While the partnership aims to localize Co-Dx PCR technology across the Middle East, the need for Saudi Food & Drug Administration (SFDA) clearance has introduced execution risk. Market participants are now questioning the timeline for regulatory approval and the venture’s scalability, triggering a sharp profit-taking wave. Additionally, the stock’s 135.9% turnover rate—far exceeding its typical liquidity—suggests a mix of short-term traders and institutional activity amplifying the move.

Health Care Equipment Sector Under Pressure as CODX Plummets
The Health Care Equipment sector, led by Thermo Fisher Scientific (TMO), is mixed, with TMO down 0.70%. While CODX’s 54.73% drop is extreme, the broader sector’s underperformance reflects investor caution ahead of regulatory updates and earnings reports. CODX’s sharp decline, however, is more tied to its specific partnership risks than sector-wide trends.

Options and ETFs in Turbulent Times: Strategic Plays for CODX
• RSI: 87.35 (overbought)
• MACD: 0.065 (bullish), Signal Line: 0.0117 (bearish)
• 200-day MA: $0.4053 (below current price)
• Bollinger Bands: $0.0030–$0.8125 (extreme volatility)

CODX’s technicals paint a volatile picture. The RSI at 87.35 suggests overbought conditions, while the MACD histogram (0.0535) hints at diverging momentum. Key support/resistance levels at $0.3376–$0.3564 (30D) and $0.2727–$0.2933 (200D) could dictate near-term direction. With no leveraged ETFs available, options remain the primary vehicle for positioning.

Top Options Picks:
• CODX20260220C0.5 (Call):
- Strike: $0.5, Expiry: 2026-02-20
- IV: 191.46% (high volatility)
- Delta: 0.7507 (high sensitivity)
- Theta: -0.0009 (moderate time decay)
- Gamma: 0.5137 (high sensitivity to price swings)
- Turnover: 4,441 (liquid)
- Why: High delta and gamma make this call ideal for a rebound scenario. A 5% downside to $0.5583 would yield a payoff of $0.0583 per share.
• CODX20260515P0.5 (Put):
- Strike: $0.5, Expiry: 2026-05-15
- IV: 229.29% (extreme volatility)
- Delta: -0.1733 (moderate bearishness)
- Theta: -0.0005 (low time decay)
- Gamma: 0.2637 (moderate sensitivity)
- Turnover: 1,133 (liquid)
- Why: This put offers downside protection with a 12% price change ratio. A 5% drop to $0.5583 would yield a payoff of $0.0583 per share.

Action: Aggressive bulls may consider CODX20260220C0.5 into a bounce above $0.60. Cautious bears should eye CODX20260515P0.5 for a breakdown below $0.50.

Backtest Co-diagnostics Stock Performance
It turns out that from 1 Jan 2022 to 28 Oct 2025 CODX.O never experienced an intraday draw-down of 54 % or greater (defined as (low-high)/high ≤ -0.54). Because the event list was therefore empty, the event-backtest engine could not compute any statistics and returned the error you saw.How would you like to proceed?A. Relax the plunge threshold (e.g., -30 % or -25 %). B. Extend the historical window further back in time. C. Analyse a different type of event (gap-down openings, earnings reactions, etc.). D. Cancel the task.Let me know your preference and I’ll rerun the analysis accordingly.

Act Now: CODX's Freefall Demands Immediate Strategy
CODX’s 53.56% plunge reflects a mix of regulatory uncertainty and profit-taking, but the stock’s technicals and options activity suggest a volatile near-term path. With Thermo Fisher (TMO) down 0.70%, sector-wide caution persists. Investors must watch the $0.50 level for puts and $0.60 for calls. A breakdown below $0.50 could trigger a wave of short-term puts, while a rebound above $0.60 may reignite call buying. Act now: Position with CODX20260220C0.5 for a bullish rebound or CODX20260515P0.5 for a bearish hedge.