Equinor Plummets 4.4% as Short-Sellers Pounce: What’s Fueling the Selloff?

Summary
• Equinor (EQNR) trades at $23.69, down 4.4% from its $24.78 previous close
• Intraday range spans $23.69 to $24.368, signaling sharp bearish momentum
• Sector leader Nextera (NEE) declines 1.52%, hinting at broader energy sector fragility

Equinor’s intraday collapse has ignited a firestorm of speculation, with the stock breaching critical support levels and triggering a surge in put option activity. As the renewable energy sector reels, traders are scrambling to decipher whether this is a short-term correction or a deeper structural shift. With the stock now trading near its 52-week low of $21.405, the stakes for investors have never been higher.

Technical Weakness and Short-Term Pressure Drive Sharp Decline
Equinor’s 4.4% intraday drop is driven by a confluence of technical triggers. The stock has pierced below its 30-day moving average ($25.005) and 200-day average ($24.329), confirming a breakdown in long-term support. Bollinger Bands analysis reveals the price is now trading at the lower band ($23.98), amplifying bearish sentiment. Meanwhile, the MACD (-0.187) remains below its signal line (-0.238), with a narrowing histogram (0.051) indicating fading bullish momentum. This technical decay has triggered algorithmic selling and forced stop-loss orders to cascade through the order book.

Renewable Energy Sector Suffers as Nextera Drags Down Momentum
The renewable energy sector is under broad pressure, with sector leader Nextera (NEE) down 1.52% on the session. While Equinor’s 4.4% decline outpaces NEE’s move, both stocks reflect a sector-wide selloff driven by macroeconomic concerns. The sector’s underperformance suggests a flight to quality amid rising interest rates, with investors rotating into defensive assets. However, Equinor’s sharper drop indicates specific technical vulnerabilities, including its proximity to the 52-week low.

Bearish Options Playbook: High-Leverage Puts and Gamma-Driven Shorting
• 200-day average: $24.329 (below current price)
• RSI: 56.35 (neutral but trending lower)
• Bollinger Bands: $23.98 (lower band) vs. $23.69 (current price)
• MACD: -0.187 (bearish divergence)

Key levels to monitor include the 200-day support at $24.48 and the 52-week low at $21.405. The short-term outlook favors bearish positioning, with the RSI and MACD both signaling continued downward bias. While no leveraged ETF data is available, the options chain reveals aggressive put buying.

Top Put Option 1: EQNR20250919P23
• Strike: $23, Expiration: 2025-09-19
• IV: 25.78% (moderate), Leverage: 94.86%, Delta: -0.292 (moderate), Theta: -0.0295 (high decay), Gamma: 0.2598 (high sensitivity), Turnover: 23,780
• IV: Implied volatility suggests balanced risk/reward
• Leverage: Amplifies returns on a 5% downside
• Delta: Positioned to benefit from mid-range moves
• Theta: High time decay favors near-term action
• Gamma: High sensitivity to price swings
• Turnover: High liquidity ensures smooth execution
Why it stands out: This put offers a 94.86% leverage ratio with high gamma, ideal for capitalizing on a 5% drop to $22.51. Projected payoff: $0.58 per contract.

Top Put Option 2: EQNR20251017P24
• Strike: $24, Expiration: 2025-10-17
• IV: 21.42% (moderate), Leverage: 25.50%, Delta: -0.569 (aggressive), Theta: -0.0192 (moderate decay), Gamma: 0.2174 (high sensitivity), Turnover: 9,921
• IV: Suggests moderate volatility expectations
• Leverage: 25.5% amplifies returns on a 5% downside
• Delta: Aggressive positioning for larger moves
• Theta: Moderate time decay suits medium-term holds
• Gamma: High sensitivity to price swings
• Turnover: Solid liquidity for entry/exit
Why it stands out: This put’s -0.569 delta and 25.5% leverage make it ideal for a 5% drop to $22.51, with a projected payoff of $1.49 per contract. The October expiration provides extra time for the move to materialize.

If $23.69 breaks, EQNR20250919P23 offers short-side potential. Aggressive bears may consider EQNR20251017P24 into a breakdown below $24.48.

Backtest Equinor Stock Performance

Act Now: Short-Term Bearish Bias Confirmed, Watch $24.48 Support
Equinor’s breakdown below key technical levels and the surge in put option activity confirm a short-term bearish bias. Investors should prioritize short-term puts like EQNR20250919P23 and EQNR20251017P24 to capitalize on the 5% downside scenario. The sector’s fragility, as evidenced by Nextera’s 1.52% decline, suggests macroeconomic pressures will persist. Immediate focus should be on the $24.48 support level and the 52-week low at $21.405. If the selloff accelerates, the put options highlighted here could deliver outsized returns. Watch for a breakdown below $23.69 to confirm the bearish case.