Option Care Soars 9.3% on Analyst Upgrades and Bullish Guidance—What’s Fueling This Surge?

Summary
• Option Care Health (OPCH) surges 9.28% intraday to $35.035, nearing its 52-week high of $35.53.
• Jefferies and Morgan Stanley raise price targets to $37 and $38, respectively, while Truist and Citizens follow suit.
• Q4 preliminary results show $1.46B revenue and $123.7M EBITDA, aligning with Street forecasts.
• Institutional ownership hits 98%, with insiders buying 38,000 shares at $25.98.
Today’s explosive move in OPCH reflects a perfect storm of analyst upgrades, strong earnings guidance, and insider confidence. The stock’s 9.3% rally has pushed it within striking distance of its 52-week peak, fueled by a chorus of bullish ratings and a robust capital structure. With the healthcare sector under pressure from ACA-related uncertainties, OPCH’s home infusion model is gaining traction as a defensive play.

Analyst Hype and Earnings Optimism Ignite OPCH’s Rally
Option Care’s meteoric rise stems from a cascade of analyst upgrades and robust Q4 guidance. Jefferies, Morgan Stanley, and Deutsche Bank all raised price targets to $37–$38, citing the company’s $95M share buyback program and in-line 2026 EBITDA forecasts. The stock’s 9.3% surge mirrors its preliminary Q4 results, which showed $1.46B in revenue and $123.7M EBITDA—figures that align with Wall Street’s expectations. Analysts highlight OPCH’s diversified portfolio and strong cash flows as key differentiators, with Truist and Citizens adding to the bullish narrative. Meanwhile, insider purchases, including Harry Kraemer’s 38,000-share buy at $25.98, signal management’s conviction in the stock’s long-term potential.

Healthcare Sector Splits as OPCH Defies UNH’s Slide
While OPCH soars, the broader healthcare sector faces headwinds. UnitedHealth Group (UNH), the sector’s bellwether, trades down 1.58% as ACA premium hikes and Medicaid cuts weigh on investor sentiment. OPCH’s home infusion model, however, remains insulated from these macro pressures. Unlike hospital-centric peers, OPCH’s decentralized care approach—administering therapies in patients’ homes—offers cost efficiency and scalability. This structural advantage has attracted 98% institutional ownership, contrasting with UNH’s exposure to regulatory and reimbursement risks. As healthcare providers grapple with ACA affordability crises, OPCH’s niche in specialty pharmaceuticals and chronic care positions it as a counter-cyclical play.

Options and ETFs to Capitalize on OPCH’s Bullish Momentum
• MACD: 0.34 (bearish divergence), Signal Line: 0.53, Histogram: -0.19 (negative momentum)
• RSI: 44.76 (neutral), Bollinger Bands: 33.37 (upper), 32.43 (middle), 31.49 (lower)
• 200D MA: 30.33 (below current price), 30D MA: 32.01 (support zone)
• Key Levels: 32.15 (30D support), 32.26 (resistance), 32.08 (200D support)
OPCH’s technicals suggest a short-term bullish bias despite bearish MACD divergence. The stock is trading above its 200-day moving average and within the upper Bollinger Band, indicating overbought conditions. RSI at 44.76 suggests no immediate overbought pressure, but the 9.3% intraday jump has created a tight trading range between $34.27 and $35.47. Aggressive bulls should target the $35.53 52-week high as a near-term ceiling, while cautious traders may use the 32.26 support level as a stop-loss reference.
Top Options Picks:
• OPCH20260220C35: Call option with 32.31% IV, 22.58% leverage, delta 0.538, theta -0.037, gamma 0.107, turnover 2,920
- IV: High volatility implies strong price swings; Leverage: Amplifies gains on a 5% move; Delta: Moderate sensitivity to price changes; Theta: Time decay manageable for short-term; Gamma: High sensitivity to price acceleration.
- This contract offers a 22.58% leverage ratio and 32.31% implied volatility, making it ideal for a 5% upside scenario. A 5% move to $36.76 would yield a payoff of $1.76 per contract, translating to a 60% return on the $2.920 premium.
• OPCH20260417C35: Call option with 33.99% IV, 13.46% leverage, delta 0.559, theta -0.020, gamma 0.065, turnover 4,690
- IV: Mid-range volatility for balanced risk/reward; Leverage: 13.46% amplifies returns; Delta: Strong price sensitivity; Theta: Lower time decay for longer holding; Gamma: Moderate acceleration.
- With 33.99% IV and 13.46% leverage, this option is suited for a 5% move to $36.79. The payoff would be $1.79 per contract, offering a 40% return on the $4.470 premium. High turnover ensures liquidity for entry/exit.
Action: Aggressive bulls should target OPCH20260220C35 for a 5% upside, while OPCH20260417C35 offers a safer, longer-term play. Both contracts benefit from OPCH’s proximity to its 52-week high and strong analyst support.

Backtest Option Care Stock Performance
The backtest of OPCH's performance following a 9% intraday increase from 2022 to the present shows a strategy return of 33.50%, with a benchmark return of 47.26% and an excess return of -13.77%. The strategy has a CAGR of 7.68% and a maximum drawdown of 0.00%, indicating a volatile but potentially profitable trajectory. However, the Sharpe ratio of 0.20 suggests that the risk-adjusted return is moderate.

Bullish Momentum Unlikely to Fade—Act Now on OPCH’s Breakout
Option Care’s 9.3% surge is underpinned by analyst upgrades, strong earnings guidance, and a resilient business model. While the healthcare sector faces ACA-related headwinds, OPCH’s home infusion strategy offers a unique value proposition. The stock’s proximity to its 52-week high and 98% institutional ownership suggest further upside. However, traders should monitor the 32.26 support level and UNH’s -1.58% slide as sector-wide indicators. For those seeking leverage, OPCH20260220C35 and OPCH20260417C35 provide high-conviction plays. Act now: Position for a breakout above $35.53 or tighten stops below $34.27 to capitalize on this momentum-driven rally.