OSI Systems Surges 13% on Explosive Earnings and Guidance Hike – What’s Next?

Summary
• OSI Systems (OSIS) rockets 13.19% to $275.98, hitting its 52-week high of $281.37
• Q3 revenue of $384.6M beats estimates by 4.9%, EPS of $1.42 exceeds consensus by 3.1%
• Full-year guidance raised to $1.85B midpoint, signaling robust growth trajectory

OSI Systems’ stock has erupted in late trading, surging 13.19% to $275.98 as investors react to a blockbuster Q3 report. The security and healthcare tech firm not only outperformed revenue and EPS estimates but also raised its full-year guidance, defying a broader market slump driven by trade tensions and tech sector jitters. With a 52-week high now in play, the question is whether this momentum is sustainable or a short-lived rally.

Q3 Earnings Beat and Raised Guidance Ignite 13% Rally
OSI Systems’ explosive move stems from its Q3 2025 results, which smashed expectations. Revenue of $384.6 million, up 11.8% year-over-year, bested Wall Street’s $366.5 million forecast by 4.9%. Adjusted EPS of $1.42 also outperformed by 3.1%. The company raised full-year revenue guidance to a midpoint of $1.85 billion and slightly lifted earnings forecasts, reflecting confidence in its security and medical tech segments. This performance contrasts with broader market fears of trade tensions and weak tech earnings, making OSI Systems a standout in a risk-off environment.

Security & Protection Sector Mixed as Honeywell Trails
The Security & Protection sector saw mixed performance, with Honeywell (HON), a sector leader, rising 0.23% on the day. While OSI Systems’ rally was driven by earnings and guidance, HON’s modest gain reflects broader sector caution amid trade uncertainty. OSI Systems’ 13% surge far outpaces HON’s move, highlighting its unique catalysts and investor enthusiasm for its diversified security and medical tech offerings.

Options and ETFs to Capitalize on Volatility and Breakouts
• 200-day average: 217.32 (well below current price)
• RSI: 51.68 (neutral, no overbought/oversold signal)
• MACD: 2.25 (bullish) vs. Signal Line 3.12 (bearish), Histogram -0.88 (divergence)
• Bollinger Bands: Price at 275.98 (above upper band 256.89), indicating overextension
• Support/Resistance: 249.10–249.68 (30D support), 223.02–224.89 (200D support)

OSI Systems is in a short-term bearish trend but long-term bullish, with key resistance at the 52-week high of $281.37. The options chain reveals two high-conviction plays: OSIS20251121C260 and OSIS20251121C270.

OSIS20251121C260 (Call, $260 strike, Nov 21 expiry):
• IV: 41.22% (high, reflecting volatility)
• Leverage Ratio: 13.73% (moderate)
• Delta: 0.7296 (high sensitivity to price moves)
• Theta: -0.5457 (rapid time decay)
• Gamma: 0.0119 (moderate sensitivity to delta changes)
• Turnover: 11,150 (liquid)
• Price Change Ratio: 185.71% (strong momentum)
This contract offers a high delta and leverage ratio, ideal for a breakout above $260. A 5% upside to $290 would yield a payoff of $30 (max(ST - K, 0) = $30).

OSIS20251121C270 (Call, $270 strike, Nov 21 expiry):
• IV: 50.55% (very high)
• Leverage Ratio: 16.95% (strong)
• Delta: 0.5853 (moderate sensitivity)
• Theta: -0.5717 (rapid decay)
• Gamma: 0.0114 (moderate)
• Turnover: 12,217 (high liquidity)
• Price Change Ratio: 268.18% (explosive)
This contract balances leverage and liquidity, with a 5% upside payoff of $20. Aggressive bulls should target a break above $270 to trigger this call’s gamma-driven acceleration.

Action: If $281.37 (52-week high) holds, OSIS20251121C270 offers a high-leverage play. If the rally falters, OSIS20251121P270 (Put, $270 strike) could hedge downside risk.

Backtest OSI Systems Stock Performance
Key takeaway • Simply buying OSI Systems (OSIS) at the close of any session that posts an intraday gain of 13 % or more and force-selling after five trading days has not added value since 2022: the cumulative return of this tactic is –1.9 %, with a –0.5 % annualized return and a 4.9 % maximum drawdown. • Returns were negatively skewed—no winners over the test window—highlighting how large single-day surges often retraced rather than followed through. • Adding further rules (e.g., profit-taking thresholds, confirmation filters, or longer holding periods) may be necessary before this idea becomes investable.Below is an interactive module containing full statistics and drill-down trade details. Feel free to explore it to review each individual trade.

Bullish Breakout or Correction? Watch These Levels
OSI Systems’ 13% surge is fueled by a rare combination of earnings outperformance and guidance optimism, but technicals suggest caution. The stock is overextended above Bollinger Bands and faces critical resistance at $281.37. While the 200-day average at $217.32 remains a long-term floor, near-term volatility could test $249.10 support. Investors should monitor the OSIS20251121C270 call for a breakout above $270 or pivot to OSIS20251121P270 if the rally stalls. Meanwhile, sector leader Honeywell (HON) at +0.23% offers a safer alternative for those wary of OSI Systems’ short-term risks. Act now: Target $281.37 for a breakout or $249.10 for a reversal.