What a crazy day in the markets today. We’re seeing impressive price action across the board, with many mega-cap stocks seeing big moves, mostly to the downside. However, for investors in Nutex Health (NASDAQ:NUTX), it’s been quite a different story. Shares of NUTX stock have skyrocketed 140% at the time of writing.
Now, zooming out on the stock chart of Nutex Health, investors will note that this is a company that’s been volatile to say the least. Since going public in early April via a merger with Clinigence, Nutex stock has traded within a wild range of $3.82-$52.80 per share. Today, shares of NUTX stock have soared from a $4.42 open to $10.65 per share, at the time of writing.
Some volatility can be expected after a merger. Indeed, looking at the world of special purpose acquisition companies (SPACs), we’ve seen this play out. However, these sorts of incredible moves in less than a month of trading are truly remarkable.
Let’s see if we can make heads or tails of today’s move in this stock.
Why Is NUTX Stock Soaring Today?
Unfortunately for investors looking for a specific catalyst driving this stock, there doesn’t really appear to be one. That’s to say, there’s little meaningful news flow on Nutex that should cause such volatility.
Since merging with Clinigence, Nutex has seen impressive volatility. Some of this may be tied to the reverse merger nature of the deal. Why investors are getting outright bullish on Nutex while other high-profile meme-like stocks are plunging today is hard to ascertain.
The company’s price action may be a result of options action picking up, as well as speculative purchases from large buyers. An extreme number of shares have traded hands today on this stock, with more than 57 million shares trading hands as of 2:40 p.m. Eastern, compared to a 65-day average of only 171,000 shares.
Accordingly, given the volatility in this stock, it appears some investors are viewing NUTX as a speculative trading vehicle. Thus, this stock is too risky for my blood. However, Nutex appears to be a stock that will be fun to watch from here.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.