IDXX Plummets 6.5%: What's Behind the Sudden Slide?

Summary
• IDEXX Laboratories (IDXX) drops 6.5% intraday to $638.09, its lowest since April 2025
• Q2 2025 guidance upgrade and IBD SmartSelect Composite Rating boost to 96
• ProShares Pet Care ETF (PAWZ) and iShares U.S. Medical Devices ETF (IHI) both down 1.2%–1.3%

Today’s sharp selloff in IDEXX Laboratories has rattled investors, despite the company’s upgraded 2025 guidance and a bullish composite rating. The stock’s 6.5% decline—its steepest intraday drop in months—has pushed it closer to key support levels, raising questions about whether the market is overreacting to lingering risks or pricing in a more cautious outlook for veterinary diagnostics.

Upgraded Guidance Fails to Quell Profit-Taking
IDXX’s 6.5% intraday plunge reflects a mix of profit-taking and lingering skepticism about its long-term growth trajectory. While the company raised 2025 revenue and EPS guidance by $90 million and $0.40 respectively, driven by strong recurring revenue and instrument placements, the market appears to be discounting risks tied to slowing clinical visits and potential margin compression. The stock’s sharp move below its 30-day moving average ($543.26) and 52-week low ($356.14) suggests short-term technical pressures are amplifying the sell-off, even as fundamentals remain intact.

Options and ETFs for a Volatile Rebound Play
• 200-day average: $460.49 (well below current price)
• RSI: 80.29 (overbought territory, suggesting potential reversal)
• MACD: 17.43 (bullish) vs. signal line 9.17
• Bollinger Bands: Price at $638.09 near lower band ($474.05), indicating oversold conditions

Key levels to watch include the 30-day support/resistance range ($528.06–$531.43) and the 200-day support ($412.52–$418.95). Short-term traders may find opportunities in leveraged ETFs like ProShares Pet Care ETF (PAWZ), which has a -1.23% intraday drop, and iShares U.S. Medical Devices ETF (IHI) (-1.30%).

Top Options Picks:
• IDXX20250815C640
- Call option, strike $640, expiration 2025-08-15
- IV: 24.76% (moderate volatility)
- Leverage ratio: 57.36% (high sensitivity)
- Delta: 0.514 (moderate directional exposure)
- Theta: -1.717 (rapid time decay)
- Gamma: 0.0145 (moderate sensitivity to price swings)
- Turnover: $3,500 (liquid)
- Payoff (5% downside): $0 (out-of-the-money)
- Why it stands out: High leverage and gamma make it ideal for a sharp rebound above $640.

• IDXX20250815C650
- Call option, strike $650, expiration 2025-08-15
- IV: 21.88% (reasonable volatility)
- Leverage ratio: 112.20% (extreme sensitivity)
- Delta: 0.354 (moderate directional exposure)
- Theta: -1.258 (rapid time decay)
- Gamma: 0.0153 (strong sensitivity to price swings)
- Turnover: $108,242 (highly liquid)
- Payoff (5% downside): $0 (out-of-the-money)
- Why it stands out: High leverage and turnover make it a top pick for a bounce above $650, though time decay is aggressive.

Trading Setup: Aggressive bulls may consider IDXX20250815C640 into a rebound above $640, while IDXX20250815C650 offers higher leverage for a stronger move. Both options require a swift reversal to justify the risk, given their rapid theta decay.

Backtest IDEXX Laboratories Stock Performance
Here is the backtest result of IDXX's performance after an intraday plunge of -7%. The maximum return during the backtest period was 2.94%, which occurred on day 59, suggesting that while the gains may not be substantial, they can still lead to positive outcomes if held for an appropriate period.

Act Now: IDXX at Pivotal Support Level
IDXX’s 6.5% drop has pushed it toward critical support levels, with the 30-day range ($528.06–$531.43) and 200-day range ($412.52–$418.95) now in focus. While the stock’s long-term fundamentals remain intact—evidenced by its upgraded guidance and bullish technical indicators—the immediate outlook hinges on whether buyers step in above $528.06. Sector leader Thermo Fisher (TMO) is down -0.23%, suggesting broader market caution. Investors should watch for a breakdown below $528.06 or a rebound above it, with options like IDXX20250815C640 offering high-leverage plays on a short-term bounce.