Novartis (NVS) has entered into a definitive agreement for the acquisition of Genoptix (GXDX) for $25 per share in cash. Genoptix overall option implied volatility of 62 is above its 26-week average of 47, according to Track Data, suggesting larger price movement.

RockTenn (RKT) and Smurfit-Stone Container (SSCC) announced that the boards of directors of both companies have approved a definitive agreement under which Smurfit-Stone will become a wholly owned subsidiary of RockTenn. The aggregate consideration, consisting of 50% cash and 50% RockTenn stock, is valued at $35 per share of Smurfit-Stone common stock. Smurfit-Stone Container overall option implied volatility of 44 was near its 26-week average, according to Track Data.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Over the past week, the medical diagnostic instrument market has heated up. On Friday, there was a report that Beckman Coulter (BEC) was seeking a buyer. On the news, the shares spiked 27%

Now there may be another deal. Genoptix (GXDX), which develops cancer testing equipment, appears to also be on the selling block. It looks like the process is in its early stages.

For its IPO, Genoptix Medical Laboratory (NASDAQ: GXDX) set a price range of $14-$16. Well, it was too low. That is, the offering was priced at $17 and, more importantly, the stock price is up 53% to $26 in today's active trading. The lead underwriter is Lehman (NYSE: LEH).

Genoptix provides high-end diagnostic services for diseases such as leukemia and lymphoma. Such diseases have many varieties and require painful bone marrow samples. In other words, it's critical that the diagnosis is right.

As for Genoptix, it has a state-of-the-art facility and a tremendous system to handle the transport of samples. The company likes to say that it has a "culture of metrics."

And the growth has been impressive. For the first half of 2007, revenues spiked 165% to $24.6 million and there was net income of $5.1 million.

What's more, Genoptix is in the early stages of its market, with a 3% share. The company believes the addressable market opportunity is more than $1 billion.

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Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements.