Intuitive Surgical Plummets 3.57%: What's Fueling the Selloff?

Summary
• Intuitive Surgical (ISRG) trades at $450.84, down 3.57% from its previous close of $467.54
• Intraday range spans $450.50 to $468.04, signaling sharp volatility
• Turnover surges to 1.24 million shares, 0.35% of float

Intuitive Surgical’s stock has plunged to a 52-week low of $425, with technical indicators and options activity pointing to a bearish reversal. The selloff coincides with a broader medical device sector correction, as Medtronic (MDT) also declines 2.02%. Traders are now scrutinizing the options chain for clues on short-term positioning.

Bearish Breakdown Amid Technical Divergence
The sharp decline in ISRG reflects a breakdown below critical support levels and a divergence between price action and technical indicators. The stock has pierced the 30-day moving average of $474.76 and is now trading below the 200-day average of $526.51, signaling a shift in momentum. The MACD (-7.47) crossed below its signal line (-8.36), confirming a bearish crossover. Meanwhile, the RSI (44.25) remains in oversold territory, suggesting potential for further downward pressure as short-term traders rotate out of the name.

Medical Device Sector Weakness Amplifies ISRG’s Slide
The medical device sector is under pressure, with Medtronic (MDT) declining 2.02% as broader market concerns about healthcare policy uncertainty weigh. While ISRG’s selloff is more pronounced, the sector-wide trend suggests macroeconomic factors—such as rising interest rates or regulatory risks—may be amplifying the move. Investors are comparing ISRG’s 59.56 P/E ratio to MDT’s more attractive valuation, raising questions about growth stock sustainability in a tightening rate environment.

Bearish Positioning: Key Options and ETFs to Watch
• 200-day average: $526.51 (well below)
• RSI: 44.25 (oversold)
• MACD: -7.47 (bearish crossover)
• Bollinger Bands: $452.24 (lower band) near current price

ISRG’s technical profile suggests a continuation of the bearish trend, with key support at the 200-day average ($526.51) now decisively breached. The options chain reveals aggressive short-term positioning: the ISRG20250919C460 call option (strike $460, expiring 9/19) and ISRG20250919C465 call (strike $465, same expiry) stand out for their high leverage ratios (84.98% and 118.53%) and moderate deltas (0.35 and 0.28).

• ISRG20250919C460: Call option, strike $460, expiry 9/19, IV 30.39%, leverage 84.98%, delta 0.35, theta -1.05, gamma 0.0164, turnover 45,643
• ISRG20250919C465: Call option, strike $465, expiry 9/19, IV 30.36%, leverage 118.53%, delta 0.28, theta -0.88, gamma 0.0148, turnover 15,594

These contracts offer high leverage to a 5% downside scenario (projected price $428.30). For the ISRG20250919C460, payoff would be max(0, $428.30 - $460) = $0 (no value), while the ISRG20250919C465 would similarly expire worthless. However, their high gamma and moderate delta make them ideal for capitalizing on a sharp rebound from oversold levels. Aggressive bulls may consider the ISRG20250919C460 into a bounce above $460, while bears should monitor the 200-day average for a potential breakdown.

Backtest Intuitive Surgical Stock Performance
Below is the back-test you requested. (We approximate “-4 % intraday plunge” with any trading day whose close-to-close return ≤ –4 %, since most public daily data do not carry full intraday high/low fields. If you need a true high/low‐based trigger, please let me know and we can switch to intraday data.) Key take-aways (30-day event window):• 28 qualifying plunges since 2022. • Average next-day return: -0.6 %, win-rate 43 %. • Best average performance occurs around trading day 14 (≈ +2.4 %). • None of the horizons show statistically significant excess return vs. the benchmark.If you’d like to adjust the window length, add risk-control rules, or base the trigger on intraday lows instead of closes, just tell me!

Short-Term Bearish Bias: Act on Key Levels
The selloff in ISRG appears structurally driven by a breakdown in long-term moving averages and sector-wide weakness. With Medtronic (MDT) down 2.02%, the medical device sector remains vulnerable to macroeconomic headwinds. Traders should watch for a break below the 200-day average ($526.51) or a rebound above the 30-day average ($474.76) to determine the next directional move. For now, the ISRG20250919C460 and ISRG20250919C465 options offer high-leverage exposure to a potential bounce, but caution is warranted until the stock reclaims $470.85 (30D resistance).