Enovix Plummets 13%: What's Fueling the Selloff?

Summary
• Enovix (ENVX) trades at $7.96, down 13.01% from its $9.15 previous close
• Intraday range of $7.70–$8.21 highlights sharp volatility
• RSI at 33.79 signals oversold territory, MACD (-0.66) confirms bearish momentum
• Options chain surges with 205.46 million turnover, 7.5-strike puts dominate activity

Enovix’s intraday collapse has ignited a frenzy in its options market, with traders scrambling to hedge or capitalize on the sharp decline. The stock’s 13% drop—its worst intraday performance since March—has pushed it closer to its 52-week low of $5.27. Technical indicators and options data suggest a critical juncture, as the stock tests key support levels and faces elevated bearish sentiment.

Bearish Momentum Unfolds Amid Technical Deterioration
The selloff stems from a confluence of technical breakdowns and speculative pressure. Enovix’s price has pierced below its 200-day moving average ($9.66) and 30-day average ($10.42), confirming a short-term bearish trend. The RSI (33.79) and MACD (-0.66) both signal oversold conditions and weakening momentum. Meanwhile, the Bollinger Bands (lower band at $8.68) indicate the stock is trading near its 20-day volatility floor. Options data amplifies the bearish narrative: the 7.5-strike put (ENVX20250919P7.5) has surged 214.29% in price, with 199 contracts traded, reflecting aggressive short-term bearish positioning.

Options Playbook: Capitalizing on the Bearish Breakdown
• Key Technicals: 200-day MA: $9.66 (below), RSI: 33.79 (oversold), Bollinger Bands: $8.68 (lower band)
• Options Focus: ENVX20250919P7.5 (Put) and ENVX20250919P8 (Put) dominate liquidity and leverage

Top Option 1: ENVX20250919P7.5
• Code: ENVX20250919P7.5
• Type: Put
• Strike: $7.50
• Expiry: 2025-09-19
• IV: 76.98% (elevated volatility)
• LVR: 37.50% (high leverage)
• Delta: -0.318 (moderate sensitivity)
• Theta: -0.0067 (slow time decay)
• Gamma: 0.375 (high sensitivity to price swings)
• Turnover: $3,788 (liquid)
• Payoff at 5% downside (ST = $7.56): $0.06 per contract (break-even at $7.50).
• Why it stands out: High gamma and leverage amplify gains if the stock breaks below $7.50, with IV providing a buffer against time decay.

Top Option 2: ENVX20250919P8
• Code: ENVX20250919P8
• Type: Put
• Strike: $8.00
• Expiry: 2025-09-19
• IV: 78.26% (moderate volatility)
• LVR: 17.50% (balanced leverage)
• Delta: -0.523 (high sensitivity)
• Theta: -0.0009 (minimal time decay)
• Gamma: 0.412 (very high sensitivity)
• Turnover: $11,670 (high liquidity)
• Payoff at 5% downside (ST = $7.56): $0.44 per contract (break-even at $8.00).
• Why it stands out: High gamma and delta create a powerful leveraged play if the stock gaps below $8.00, with low theta preserving value into expiry.

Trading Setup: Aggressive bears should prioritize the 7.5-strike put for high leverage and gamma, while the 8.00-strike put offers a safer entry with lower delta. Key levels to watch: $7.97 (200D MA) and $7.70 (intraday low). If $7.50 breaks, the 7.5-strike put could see exponential gains.

Backtest Enovix Stock Performance
Below is the event-study back-test you requested. We defined an “intraday plunge” as a same-day high-to-low draw-down of at least 13 % using the daily high/low series (a practical proxy when tick-level data are unavailable). Key take-aways (full interactive report in the module):• Number of qualifying events (2022-01-01 → 2025-09-11): 51 • Average close-to-close performance after the event:  – Day +1 ≈ +0.68 % (47 % win-rate)  – Day +10 ≈ +2.49 % (53 % win-rate)  – Day +30 ≈ –1.81 % (40 % win-rate) • None of the horizon returns are statistically significant at the 95 % confidence level. • Price recovery tends to plateau after ~15 trading days and drifts lower thereafter.Auto-filled choices and rationale 1. Price data granularity: daily high/low series (most readily available, gives a conservative count of –13 % intraday moves). 2. Holding-period statistics: default 30-day window, a common standard in event studies for short-term drift. 3. Price type for returns: close price (neutral to opening gaps).The interactive visualization and downloadable results are embedded below.Please explore the module for interactive charts (cumulative abnormal returns, win-rate curve, etc.). Let me know if you’d like deeper cuts (e.g., different plunge thresholds, intraday minute data, or overlaying market factors).

Act Now: The 7.5-Strike Put Could Be Your Lifeline
Enovix’s 13% intraday drop has created a high-probability short-term bearish scenario, with technicals and options data aligning for a continuation below $7.50. The 7.5-strike put (ENVX20250919P7.5) and 8.00-strike put (ENVX20250919P8) offer the most compelling risk/reward profiles, leveraging elevated gamma and IV. Traders should monitor the 200-day moving average ($9.66) as a critical resistance level—if breached, the selloff could accelerate. With Apple (AAPL) up 0.73% in the sector, Enovix’s decline appears isolated, reinforcing the case for a focused short play. Act now: Buy the 7.5-strike put if $7.70 breaks, or the 8.00-strike put for a safer entry.