What happened

Shares of OrganiGram Holdings (NASDAQ:OGI) were 7.8% higher as of 11:44 a.m. EDT on Friday after rising as much as 11.5% earlier in the day. The Canadian cannabis producer didn't report any new developments. You can chalk the gain up to the overall stock market rebound after Thursday's big sell-off.

So what

There's one thing investors should do based on OrganiGram's move today: nothing. Most stocks tend to rise and fall along with how the broader market is doing. It's more important to focus on OrganiGram's long-term business prospects than its stock price swings.

Shadow of a Canadian maple leaf on top of a pile of cannabis leaves

Image source: Getty Images.

Those prospects appear to look better after OrganiGram announced a major deal earlier this week to supply up to 6,000 kilograms of cannabis flower to Israel-based medical cannabis company Canndoc. Half of that amount is guaranteed, with OrganiGram obligated to ship 3,000 kilograms to Canndoc by Dec. 31, 2021.

OrganiGram's opportunities with Canada's Cannabis 2.0 market for cannabis derivatives should also pick up. The company recently rolled out products including vape pens and chocolates to medical cannabis consumers in Canada.

Now what

The most important thing for investors to watch with OrganiGram over the near term will be its fiscal 2020 Q3 results in July. In the meantime, the marijuana stock could continue to be highly volatile, just like the overall stock market.