OPCH support zone 25 hit

Support zone: close above is a hit. Close on the level is a push. Graded on the regular-session close.

A support zone is a price below the market where a large amount of options positioning sits. The idea is that this positioning can slow a move down there, so the test is simple: does the stock close above it? When it was posted at 18:50 ET, OPCH traded at 28.35, 13.4% above the support zone. On the same map, the next level above was 30 and the next level below was 22.5. See the original post.

Price never closed a 5-minute bar on the wrong side of the support zone. Its closest approach was 6.00 away (31.00); the session range was 31.00 to 31.10. In the last hour price moved up 0.02, from 31.05 to 31.07.

The regular-session close was 31.01, 6.01 (24.04%) above the support zone at 25. Under the rule (support zone: close above is a hit), that is a hit.

CD&R and McKesson agreed to acquire Option Care Health for $32.05 per share in cash (about $5.8 billion including debt), a roughly 37% premium to the prior close. The stock gapped up and traded in a narrow range just under the deal price all day. OPCH finished the day up 32.6%, while SPY was up 0.5%.

• Option Care Health 8-K via StockTitan: $32.05-a-share acquisition agreement
• TheStreet: Option Care stock surges on McKesson's home-infusion bet
• The Motley Fool: Why Option Care Health stock skyrocketed on Tuesday