Healthpeak Plunges 6.44% – What’s Fueling the Sharp Selloff Amidst Q2 Earnings and Tech Boost?

Summary
• Healthpeak Properties (DOC) reported Q2 FFO of $0.46/share, matching estimates but revenue fell short of $694.6M target.
• The stock opened at $18.345 but plunged to an intraday low of $17.481, erasing 6.44% of its value.
• Wall Street analysts project a 23.77% upside to $21.85, citing AI integration and outpatient segment growth.
• Despite strong FFO performance, rising interest expenses and mixed revenue results triggered a sharp selloff. The stock’s 52-week range of $16.635–$23.26 now appears vulnerable to a potential breakdown.

Mixed Earnings and AI Integration Spark Volatility
Healthpeak’s sharp decline stems from a combination of mixed Q2 results and investor skepticism over its AI-driven tech overhaul. While funds from operations (FFO) of $0.46/share matched expectations, revenue of $694.3M missed estimates by $0.3M. Rising interest expenses ($75.1M) further pressured margins. Meanwhile, the company’s AI integration, though positioned as a growth catalyst, has triggered short-term profit-taking as investors weigh the long-term viability of its outpatient and lab segments. The stock’s dynamic PE ratio of 82.98x also highlights elevated valuations, making it a prime target for volatility.

Options Picks and ETF Outlook: Navigating Volatility and Leverage
• RSI: 63.71 (neutral/overbought boundary)
• MACD: 0.326 (bullish divergence), Signal Line: 0.265, Histogram: 0.061
• Bollinger Bands: Upper $19.17, Middle $18.26, Lower $17.35
• 200D MA: $19.74 (above current price)
• Key support: $17.45–$17.50, resistance: $19.17

The stock is trading near its 52-week low and within the lower Bollinger Band, suggesting oversold conditions. A break below $17.45 could trigger further declines toward $16.635. Conversely, a rebound above $18.39 may test the 200D MA at $19.74.

Top Options Picks:
• DOC20250815P17.5 (Put): Strike Price $17.50, IV 21.81%, Leverage 58.95%, Delt -0.42, Theta -0.0156, Gamma 0.4115, Turnover $12,257
• DOC20250919P17.5 (Put): Strike Price $17.50, IV 22.49%, Leverage 31.58%, Delt -0.446, Theta -0.0082, Gamma 0.2493, Turnover $11,618

Payoff Analysis (5% downside to $16.77):
DOC20250815P17.5: $17.50 - $16.77 = $0.73 gain (730% return on premium).
DOC20250919P17.5: $17.50 - $16.77 = $0.73 gain (730% return on premium).

These puts offer asymmetric upside with high leverage and moderate delta, ideal for capitalizing on a potential short-term breakdown. Aggressive bulls may consider DOC20251017C20 into a bounce above $18.39.

Backtest Healthpeak Stock Performance
The iShares Core S&P U.S. ETF (DOC) has historically shown resilience after experiencing a significant intraday plunge of -6% or more. The backtest data reveals that the 3-day win rate is 52.43%, the 10-day win rate is 51.62%, and the 30-day win rate is 51.78%, indicating a higher probability of positive returns in the short term following such events. The maximum return during the backtest period was 0.02%, which occurred on the third day after the intraday plunge, suggesting that while the ETF may experience some short-term volatility, it tends to recover modestly quickly.

Act Now: Short-Term Volatility and Strategic Options Play
The selloff reflects near-term profit-taking and valuation concerns, but Healthpeak’s long-term fundamentals—driven by AI integration and outpatient growth—remain intact. Investors should monitor the $17.45 support level and $18.39 resistance for directional clues. Sector leader Welltower (WELL) fell 0.037%, underscoring the sector’s mixed momentum. Aggressive traders may prioritize the DOC20250815P17.5 put for a 730% return scenario if the stock breaks $17.45. For now, watch the 52-week low and key Bollinger Band levels for a potential reversal or continuation.