Gildan Activewear Soars 11.56%: A Game-Changing Merger Ignites Market Frenzy

Summary
• Gildan Activewear (GIL) surges 11.56% intraday, hitting a 52-week high of $55.96
• Merger with HanesBrands announced, creating a $4.4B apparel giant with $200M+ annual synergies
• Turnover spikes to 3.42M shares, signaling urgent institutional and retail participation

Gildan Activewear’s stock has erupted on news of a transformative $4.4 billion merger with HanesBrands, a deal expected to unlock $200 million in annual cost synergies and double Gildan’s revenue. The stock’s 11.56% surge—its largest intraday gain in over a decade—reflects investor euphoria over the strategic and financial rationale. With the combined entity poised to dominate global basic apparel, the move has triggered a frenzy of options activity and speculative positioning.

Merger with HanesBrands Sparks Explosive Rally
Gildan’s 11.56% surge stems from the announced acquisition of HanesBrands, a $2.2 billion equity deal that creates a global apparel leader with $6.88 billion in pro forma sales. The transaction, valued at $6 per HanesBrands share (a 24% premium), is expected to deliver immediate adjusted EPS accretion and $200 million in annual cost synergies by 2028. The merger’s strategic benefits—enhanced retail reach, expanded brand portfolio, and a vertically integrated low-cost manufacturing network—have triggered a re-rating of Gildan’s valuation. Investors are pricing in the combined entity’s ability to leverage HanesBrands’ iconic innerwear brands and Gildan’s activewear dominance, with the deal projected to boost Gildan’s EBITDA margin to 23% post-synergies.

Apparel Manufacturing Sector Volatile Amid Merger Hype
The Apparel Manufacturing sector (S&P 500 sector code: 1030) has seen mixed reactions to Gildan’s rally. While peers like V.F. Corporation (VFC) rose 6.59% on broader retail optimism, others like Crocs (CROX) declined amid tariff concerns. Gildan’s merger-driven surge outpaces sector averages, reflecting its unique position as a vertically integrated player with clear synergy visibility. The deal’s $8.9x EBITDA multiple for HanesBrands also signals a premium valuation environment for apparel consolidators, contrasting with the sector’s recent struggles with inflation and shifting consumer demand.

Options and ETFs to Capitalize on Gildan’s Merger-Driven Momentum
• 200-day MA: $48.51 (below current price)
• RSI: 28.92 (oversold)
• MACD: 0.22 (bullish divergence)
• Bollinger Bands: Price at $54.80 (above upper band of $53.80)

Gildan’s technicals suggest a continuation of its merger-driven rally. The stock has broken above its 200-day MA and is trading near its 52-week high, with RSI indicating oversold conditions that could fuel further buying. For options traders, the GIL20250919C50 call and GIL20250919P52.5 put stand out. The GIL20250919C50 call (strike $50, expiration 9/19) has a 0.887 delta, 25.39% IV, and 189.23% price change ratio, offering leveraged exposure to a potential $55.96 target. The GIL20250919P52.5 put (strike $52.5, expiration 9/19) has a -0.297 delta, 30.76% IV, and -70% price change ratio, hedging downside risk while capitalizing on volatility. Both contracts have high gamma (0.042 and 0.063) and theta (-0.037 and -0.013), making them responsive to price swings. A 5% upside scenario (target $57.54) would yield a $7.54 payoff for the call and a $5.04 payoff for the put. Aggressive bulls should consider GIL20250919C50 into a break above $55.96, while cautious traders may pair it with the GIL20250919P52.5 for a collar strategy.

Backtest Gildan Activewear Stock Performance
The 12% intraday surge in the GIL ETF has historically led to positive short-to-medium-term gains. The backtest data shows that 53.13% of days experience a return within the first three days, rising to 60.69% over 30 days. The maximum return observed was 4.88% within 58 days of the event, indicating that there is potential for significant gains following a substantial intraday increase.

Gildan’s Merger-Driven Rally: A High-Velocity Trade with Clear Catalysts
Gildan’s 11.56% surge is a high-velocity trade driven by a clear catalyst—the HanesBrands merger—with near-term upside tied to regulatory approvals and synergy realization. The stock’s technicals and options activity suggest continued momentum, particularly if it holds above $52.13 (intraday low) and $51.82 (20-day MA). Sector leader V.F. Corporation (VFC) rose 6.59%, reinforcing the sector’s receptiveness to consolidation plays. Investors should monitor the $55.96 52-week high as a critical resistance level and watch for a potential pullback to $49.84 (Bollinger lower band) as a buying opportunity. For now, the merger’s $200 million synergy target and $6.4 billion pro forma EBITDA make Gildan a compelling long-term play, with options offering leveraged access to its near-term volatility.