Presented by Strategic Trader: Warrants can give you years to be right on a stock with option-like upside, yet most investors have never looked at one.
Get the free Beginner's Guide to Warrants →

Dealmaking is setting the tone this morning. The day's biggest gainer is soaring on a reported multibillion-dollar takeover, and a power company is rallying after landing a long-term supply commitment from one of the biggest names in tech.

Elsewhere, a crop chemicals name picked up a bullish Wall Street upgrade, and another company paired a leadership handoff with an early revenue beat. The lone loser is a hard drive maker whose rivalry with a competitor just moved into the supply chain.

Most investors know stocks and options. Far fewer have looked at warrants: securities issued by a company that can give you years to be right about a stock but with option-like returns.

Strategic Trader’s free guide covers how they work, what makes warrants appealing, and the risks that trip people up. Get the guide when you join for free today.

Option Care Health (OPCH): +20%

The infusion services provider is surging after a Financial Times report that McKesson (MCK) and private equity firm Clayton Dubilier & Rice are in advanced talks to jointly acquire it in a deal valued at more than $5 billion. McKesson is up 1.5%, a sign the market is comfortable with the buyer's side of the trade too. Until a deal is signed, though, the premium rests on advanced talks turning into a contract.

Constellation Energy (CEG): +7%

Google announced a major long-term power agreement with the power company, and Constellation is capturing nearly all of the market's enthusiasm while Alphabet (GOOGL) edges up about 0.5%. The deal covers power tied to 890 megawatts of new nuclear capacity plus a separate 2,700-megawatt supply agreement, supporting more than $4.3 billion in new Constellation investment. When a buyer of Google's scale underwrites new capacity, future generation starts to look like contracted demand.

NeoGenomics (NEO): +3%

NeoGenomics paired a leadership handoff with an early look at results, and the numbers are doing the talking. President and COO Warren Stone will take the helm from Tony Cook in January 2027, while preliminary third-quarter revenue came in ahead of what analysts expected. Pre-announcing a beat alongside a succession plan tells investors the transition is happening from a position of strength.

Corteva (CTVA): +3%

JPMorgan upgraded the stock to Overweight from Neutral with a $19 price target that implies 53% upside. The bank argues Corteva's sharper focus on crop chemicals, along with improving agricultural commodity prices, should help drive the shares higher. A call for upside of that size is essentially a bet that the market hasn't caught up to the more focused business.

Seagate Technology (STX): -3%

Seagate is slipping after a Bloomberg report that it's competing with Toshiba to buy TDK's magnetic-heads business for hard drives, a deal that could be worth several billion dollars. Toshiba is the same rival whose plan to double its AI data-center drive capacity knocked Seagate down 10% last week. Now that rivalry is spilling into the supply chain itself, and investors are weighing what a costly bidding war could mean for a stock that hasn't fully recovered.

You probably know stocks and options. But have you looked at warrants? These company-issued securities can offer a different way to invest in a stock’s potential upside. Similar to options, but giving you years instead of weeks.

John Pangere's free guide explains how warrants work, what he looks for, and when to walk away.

USA Rare Earth (USAR)

USA Rare Earth is sitting near the top of StockTwits' trending list this morning, and the conversation is split. Bulls are pointing to a fresh start under new CEO Thras Moraitis, who took over October 1 and reorganized the company into mining, metals, and magnet units, while skeptics keep circling share dilution, a resale overhang, and the prolonged selloff across rare-earth names.

The overhang is real: the Serra Verde combination that closed in September issued roughly 126.5 million new shares, and a mid-September filing registered them for potential resale, about a third of shares outstanding. Whether a new CEO focused on execution can outweigh that supply of stock is the question traders seem to be working through.

✌️That’s it for today.