SMX Soars 70% on Breakthrough in Cannabis Tracking Tech – What’s Next for This Volatile Penny Stock?

Summary
• SMX (NASDAQ:SMX) surges 70.12% intraday, trading at $32.80 after opening at $18.15
• Company unveils molecular tracking tech for cannabis and recycled materials in press releases
• Options volume spikes with 15 million shares traded, turnover rate surges 1,479%

Security Matters (SMX) has ignited a frenzy in the market, surging over 70% in a single trading session. The stock’s meteoric rise follows a series of press releases highlighting its molecular identity technology for cannabis tracking and silver verification. With a day range of $18.14 to $40.56 and a 52-week high of $21,304.07, SMX’s volatility has drawn both retail and institutional attention. The surge coincides with growing regulatory scrutiny in material tracking and sustainability reporting, positioning SMX at the intersection of innovation and compliance.

Molecular Tracking Tech Ignites SMX's 70% Surge
SMX’s explosive move stems from its recent press releases detailing a breakthrough in molecular identity technology. The company’s ability to embed invisible, tamper-proof markers into cannabis packaging and materials like silver has positioned it as a solution to fragmented supply chain tracking. The technology eliminates reliance on external labels or databases, offering a physical proof system that aligns with regulatory demands. Recent deployments in silver verification and partnerships in plastics recycling have amplified investor optimism. The surge also coincides with heightened global focus on material accountability, as regulators and corporations seek verifiable solutions for sustainability claims.

Options Playbook: Capitalizing on SMX's Volatility
• 200-day MA: $17.09 (below current price) • RSI: 25.84 (oversold) • MACD: -13.91 (bearish) • Bollinger Bands: $236.87 (upper), $116.02 (middle) • Kline pattern: Short-term bearish, long-term ranging

SMX’s technicals paint a mixed picture. While the RSI suggests oversold conditions, the MACD and Kline pattern hint at short-term bearish momentum. However, the stock’s recent surge has created asymmetric options opportunities. Two contracts stand out:

• SMX20260116C35 (Call, $35 strike, Jan 16 expiry): Delta 0.56, IV 261.09%, leverage 6.20%, theta -0.3478, gamma 0.0267, turnover 52,066. High IV and moderate delta suggest strong sensitivity to price moves.
• SMX20260220C30 (Call, $30 strike, Feb 20 expiry): Delta 0.907, IV 30.00%, leverage 2.09%, theta -0.0313, gamma 0.0462, turnover 15,930. High delta and gamma indicate responsiveness to upward moves.

Under a 5% upside scenario (target $34.44), the SMX20260116C35 would yield a payoff of $0.44 per contract, while the SMX20260220C30 would see $4.44. Aggressive bulls may consider the Jan 16 call for short-term gains, while the Feb 20 call offers longer exposure to potential follow-through. Watch for a breakdown below $30 to trigger short-side plays.

Backtest SMX Stock Performance
The performance of SMX after a 70% intraday surge from 2022 to the present can be summarized as follows:1. Event Analysis: On October 15, 2025, SMX experienced a significant 70% intraday surge. This event is notable for its potential impact on the stock's trajectory, as intraday surges of this magnitude can indicate strong investor confidence or reaction to company-specific news.2. Short-Term Gains: The stock's price surged to $17.40, an impressive increase from its previous trading day's close. This surge was accompanied by high trading volumes, indicating heightened investor interest and activity.3. Sustainability Concerns: While the initial reaction to such surges is often positive, the long-term sustainability of such gains is typically questionable. Historical patterns in similar stocks suggest that the positive momentum may not persist after the initial excitement wears off.4. Market Sentiment: The surge was likely driven by a combination of factors, including SMX's strategic partnerships and significant equity raise, which bolstered investor confidence. However, the company's past performance and the broader market's reaction will play a role in determining whether the current price level can be maintained.5. Backtest Insights: To fully understand the implications of this surge, it would be beneficial to analyze the stock's performance over the following weeks and months. Historical backtests of similar events suggest that while short-term gains can be substantial, the stock often faces downward pressure in the longer term.In conclusion, while a 70% intraday surge is a positive development for SMX, it is crucial to monitor the stock's performance closely in the coming days and weeks to assess the durability of the gains. Investors should consider both the potential for further growth and the risks associated with such high volatility.

SMX at a Crossroads – Act Fast on This High-Volatility Play
SMX’s 70% intraday surge underscores its potential as a disruptor in material tracking, but the stock’s volatility demands caution. The options market reflects this duality, with high IV and leverage ratios amplifying both upside and downside risks. While the company’s technology aligns with regulatory tailwinds, execution challenges and sector headwinds (e.g., MMM’s -2.02% decline) could test its momentum. Investors should monitor the $30 support level and $40.56 intraday high for directional clues. For now, SMX remains a high-reward, high-risk proposition—positioned to capitalize on its breakthroughs or collapse under scrutiny.