Core Scientific Plummets 10%: What's Fueling the Selloff?

Summary
• Core Scientific (CORZ) trades at $13.57, down 10.2% from its $14.55 open
• Intraday range spans $13.55 to $14.74 amid heavy turnover of 12.57 million shares
• Sector leader Equinix (EQIX) declines 0.32%, hinting at broader data services sector pressure
Today’s sharp selloff in Core Scientific has sent the stock to its lowest level since mid-July, with technical indicators and options activity suggesting a critical juncture. The stock’s 52-week range of $6.20 to $18.63 remains intact, but the current price near the 200-day moving average of $12.35 raises questions about near-term support. With implied volatility surging across the options chain, traders are recalibrating positions ahead of key technical levels.

Technical Divergence and Volatility Surge
The 10.2% intraday drop in Core Scientific reflects a breakdown in short-term momentum despite a bullish K-line pattern. The RSI at 66.84 suggests overbought conditions, while the MACD histogram (0.13) is contracting, signaling weakening bullish momentum. The stock is now trading below its 30-day moving average ($14.10) but remains above the 200-day average ($12.35), creating a critical support/resistance battleground. Bollinger Bands show the price is near the lower band ($12.60), amplifying the risk of a short-term bounce or further decline.

Options Playbook: Capitalizing on Volatility and Gamma
• 200-day average: $12.35 (below current price); RSI: 66.84 (overbought)
• Bollinger Bands: Upper $14.88, Middle $13.74, Lower $12.60
• Key support/resistance: 30D $13.39–$13.50, 200D $12.07–$12.31

Traders should focus on key levels at $13.50 (30D support) and $12.35 (200D support). The options chain reveals two high-conviction plays:

• CORZ20250822P13.5 (Put, $13.5 strike, 2025-08-22 expiry):
- Implied Volatility: 71.65% (moderate)
- LVR: 21.43% (high leverage)
- Delta: -0.472 (moderate sensitivity)
- Theta: -0.0018 (low time decay)
- Gamma: 0.2486 (high sensitivity to price moves)
- Turnover: $189,661 (liquid)
This put option offers asymmetric potential if the stock breaks below $13.50. A 5% downside to $12.90 would yield a payoff of $0.60 per contract, with gamma amplifying gains as the price drops.

• CORZ20250822C14 (Call, $14 strike, 2025-08-22 expiry):
- Implied Volatility: 81.25% (high)
- LVR: 25.96% (high leverage)
- Delta: 0.4229 (moderate sensitivity)
- Theta: -0.0578 (moderate time decay)
- Gamma: 0.2156 (high sensitivity)
- Turnover: $201,411 (liquid)
This call option is ideal for a rebound above $14.00. A 5% upside to $14.21 would generate a $0.21 payoff, with gamma boosting returns if the stock rallies.

Aggressive bulls may consider CORZ20250822C14 into a bounce above $14.00, while bears should target CORZ20250822P13.5 if $13.50 breaks.

Backtest Core Scientific Stock Performance
The 3-Day win rate for CORZ after an intraday percentage change of -10% is 59.76%, the 10-Day win rate is 63.91%, and the 30-Day win rate is 69.82%. The maximum return during the backtest was 38.32%, with a maximum return day of 59.

Critical Levels and Immediate Action Plan
The selloff in Core Scientific has created a high-volatility environment with clear technical triggers. Traders must watch the $13.50 support level and the 200-day average at $12.35. A break below $13.50 could accelerate the decline toward $12.07, while a rebound above $14.00 may rekindle short-term bullish momentum. Sector leader Equinix’s 0.32% decline suggests broader data services sector caution. Immediate action: position in CORZ20250822P13.5 for downside protection and CORZ20250822C14 for a potential rebound. Watch for $13.50 breakdown or regulatory reaction.