American Express Plunges 2.22%: What’s Fueling the Selloff Amid Sector Weakness?

Summary
• American Express (AXP) trades at $323.82, down 2.22% intraday
• Intraday range spans $321.41 to $332.02, reflecting sharp volatility
• Diversified Financials sector lags, with Financials down 0.66%
• Options activity surges, with 208,184 shares traded and 20 active contracts

Today’s selloff in American Express has sent shockwaves through the Diversified Financials sector, with the stock trading near its 52-week low. The decline coincides with broader weakness in Financial Services, driven by regulatory uncertainty and macroeconomic headwinds. Technical indicators and options data suggest a critical juncture for AXP, as traders recalibrate positions ahead of key support levels.

Regulatory Uncertainty and Earnings Revisions Spark AXP's Slide
American Express’s 2.22% intraday drop aligns with a broader selloff in the Diversified Financials sector, which trails the S&P 500 by 0.66%. The move follows mixed earnings reports from sector peers and growing concerns over regulatory scrutiny. Technically, AXP’s price action breaches critical moving averages (30D: $308.29, 200D: $295.03) and trades below the Bollinger Band lower bound of $286.41. The RSI at 83.48 signals overbought exhaustion, while the MACD histogram’s declining slope confirms waning bullish momentum. Zacks’ analysis highlights AXP’s Momentum Score A and recent earnings estimate revisions, but sector-wide pressure and macroeconomic headwinds have overshadowed these positives.

Diversified Financials Lag as AXP Mirrors Sector Weakness
The Diversified Financials subsector underperforms with a -0.66% intraday move, contrasting with resilient sectors like Mortgage Finance (+2.82%). AXP’s decline mirrors weakness in peers like Visa (-0.17%) and JPMorgan (-1.02%), suggesting sector-wide pressure. The Financial Services ETF (XLF) lags at +9.98% YTD, highlighting structural challenges in interest rate normalization and regulatory compliance costs.

Options and ETF Plays for Navigating AXP's Volatility
• 200-day average: $295.03 (below current price)
• RSI: 83.48 (overbought)
• MACD: 6.08 (bullish) vs. Signal Line: 3.18
• Bollinger Band: $333.69 (upper) / $286.41 (lower)

Positioning for a continuation of the selloff, two options stand out: AXP20250912C325 and AXP20250912C327.5. Both contracts exhibit high liquidity and favorable Greeks. Traders should monitor the $310 support level (30D MA) and $295.03 200D MA. A break below $310 could trigger a test of the 52-week low. For ETF exposure, consider KBWB (Invesco KBW Bank ETF, +16.24% YTD) as a proxy for sector rotation.

AXP20250912C325:
• IV: 24.26% (moderate)
• LVR: 80.53% (high leverage)
• Delta: 0.4296 (moderate sensitivity)
• Theta: -0.7012 (rapid time decay)
• Gamma: 0.0304 (strong price sensitivity)
• Turnover: 71,658 (high liquidity)
• Payoff at 5% downside: $0 (max(0, 322.110.95 - 325))
• Ideal for short-term bearish bets with defined risk.

AXP20250912C327.5:
• IV: 23.47% (moderate)
• LVR: 111.08% (extreme leverage)
• Delta: 0.3512 (moderate sensitivity)
• Theta: -0.5993 (rapid time decay)
• Gamma: 0.0296 (strong price sensitivity)
• Turnover: 21,640 (high liquidity)
• Payoff at 5% downside: $0 (max(0, 322.110.95 - 327.5))
• Aggressive play for sharp declines with high reward/risk ratio.

If $310 breaks, AXP20250912C325 offers short-side potential. Aggressive bulls may consider AXP20250912C327.5 into a bounce above $332.02.

Backtest American Express Stock Performance

Critical Levels and Immediate Action for AXP Traders
The selloff in American Express reflects broader sector weakness and technical exhaustion. Immediate support at $310 and $295.03 will dictate near-term direction, with a breakdown below $310 signaling a potential test of the 52-week low. Options traders should prioritize AXP20250912C325 and AXP20250912C327.5 for short-term bearish exposure. Watch for confirmation of a breakdown below $310 or a reversal above $332.02 (intraday high) to determine next steps. Sector leader Visa (V) at -0.17% offers a benchmark for broader market sentiment. Watch for $310 breakdown or regulatory reaction.