PACS Plummets 31% Amid Leadership Turmoil and Delisting Fears

Summary
• PACS Group’s stock nosedives 31.5% intraday, trading at $7.75 amid a delisting countdown
• CFO Derick Apt resigns following board investigation into improper gift allegations
• Company faces SEC-mandated deadline of Nov. 19 to file 2024 financials or face NYSE removal

PACS Group’s catastrophic intraday selloff has sent its shares from a $9.71 high to a $7.70 low, erasing over $300 million in market value. The collapse follows a seismic leadership shakeup, regulatory scrutiny, and a delisting clock ticking down to Nov. 19. With the stock now trading near its 52-week low, investors are grappling with a perfect storm of governance failures, financial restatements, and existential threats to its public listing.

Leadership Scandal and Delisting Risks Trigger Sharp Selloff
The collapse of PACS Group’s stock is rooted in a cascading crisis of governance and financial transparency. The resignation of CFO Derick Apt, who accepted 'high-value items' from related entities, has compounded investor fears following a broader internal investigation into billing practices. The board’s interim findings confirmed Apt’s violations of company policy, triggering immediate resignation and accelerated vesting of restricted stock units. Meanwhile, the company’s failure to file 2024 financials since August 2024 has triggered a delisting threat from the NYSE, with the SEC demanding compliance by Nov. 19. These developments have eroded confidence in PACS’ leadership and operational integrity, triggering a liquidity-driven selloff.

Options Playbook: Capitalizing on Volatility and Liquidity
• MACD: -0.085 (bearish divergence), Signal Line: -0.041, Histogram: -0.044 (deepening bearish momentum)
• RSI: 48.48 (neutral to bearish), Bollinger Bands: $10.99–$12.10 (price near lower band)
• 30D MA: $11.43 (below current price), 200D MA: $12.23 (key resistance)

Technical indicators confirm a short-term bearish trend, with PACS trading near its 52-week low and key support levels. The stock’s 31% intraday drop has created a high-volatility environment, making options with aggressive leverage and liquidity the most strategic plays. Two contracts stand out:

• PACS20250919P7.5 (Put, $7.5 strike, 9/19 expiry):
- IV: 107.46% (elevated volatility)
- Leverage: 17.20% (high gearing)
- Delta: -0.394 (moderate sensitivity)
- Theta: -0.0124 (moderate time decay)
- Gamma: 0.2665 (strong price sensitivity)
- Turnover: $12,404 (high liquidity)
- Payoff (5% downside): $0.1375 per share (17.20% leverage amplifies returns)
This put option offers a high-leverage play on further downside, with liquidity and gamma positioning to capitalize on volatility.

• PACS20251017P7.5 (Put, $7.5 strike, 10/17 expiry):
- IV: 83.88% (moderate volatility)
- Leverage: 11.06% (balanced gearing)
- Delta: -0.394 (moderate sensitivity)
- Theta: -0.0066 (lower time decay)
- Gamma: 0.1814 (moderate price sensitivity)
- Turnover: $29,009 (strong liquidity)
- Payoff (5% downside): $0.1375 per share (11.06% leverage offers controlled exposure)
This longer-dated put provides a more conservative play, balancing time decay with liquidity and moderate leverage.

Aggressive short-sellers should prioritize PACS20250919P7.5 for immediate volatility capture, while PACS20251017P7.5 suits those hedging against extended bearish pressure. Both contracts align with PACS’ technical breakdown and regulatory risks.

Backtest PACS Stock Performance
I’ve reviewed PACS’s price history from 2022-01-01 to the present. Within that period the data does not show any single day in which the stock’s intraday draw-down reached –32 % or worse, so an event list cannot be generated under the exact condition you specified.Please let me know how you’d like to proceed:1. Relax the plunge threshold (e.g., –20 % or –25 %) and run the event analysis on those days.2. Use an alternative definition (for example, –32 % drop from prior close to the day’s close) rather than true intraday low.3. Provide the exact dates you have in mind, and I can back-test the post-event performance.Once I have clarification, I can complete the event-based back-test for you.

Urgent Action Required: Navigating PACS's Precipice
PACS’ 31% intraday collapse signals a critical inflection point, with delisting deadlines and governance scandals creating a high-risk environment. The stock’s technical breakdown below key moving averages and Bollinger Bands suggests further downside, while the options market reflects elevated volatility. Sector leader HCA (down 1.19%) underscores broader healthcare sector fragility, but PACS’ unique crisis demands isolated action. Investors must monitor the Nov. 19 SEC deadline and the company’s ability to restate financials. Immediate focus should remain on short-dated puts like PACS20250919P7.5 and liquidity-driven hedges. Watch for a breakdown below $7.50 or regulatory intervention to dictate next steps.