Altice USA Plunges 9.3%—Is This the Bottom or a Warning Shot for the Cable Sector?

Summary
• Altice USA (ATUS) slumps 9.3% to $2.675, trading near 52-week lows
• FCC’s Emergency Alert System review and Trump’s public broadcasting cuts ignite sector-wide jitters
• Options chain shows 66.99% implied volatility on $2.50 put, signaling extreme bearishness
Altice USA’s stock has imploded in a single session, driven by regulatory overhang and subscriber attrition. With the 52-week low at $1.52 just 23% away and the 200-day moving average ($2.52) in sight, the cable giant faces a critical juncture. Sector peers like Comcast are also under pressure, amplifying concerns about structural shifts in the industry.

Regulatory Uncertainty and Subscriber Attrition Fuel Freefall
Altice USA’s 9.3% selloff is a direct consequence of two interlinked factors: regulatory uncertainty and subscriber losses. The Federal Communications Commission’s (FCC) impending vote to restructure the Emergency Alert System has spooked investors, compounding fears over Trump’s $9 billion public broadcasting cuts. These developments threaten the sector’s reliance on government contracts and infrastructure spending. Meanwhile, Altice’s Q2 report revealed 117,000 broadband and 80,000 video subscriber losses, exacerbating bearish sentiment. The options market reflects this panic, with the $2.50 put (ATUS20250815P2.5) trading at 66.99% implied volatility and a 26.85% leverage ratio, indicating aggressive shorting activity.

Cable & Satellite Sector in Retreat as FCC Uncertainty Looms
The broader cable and satellite sector is hemorrhaging value, with sector leader Comcast (CMCSA) down 4.39% intraday. Charter Communications (CHTR) has plummeted 17.7%, while Liberty Broadband (LBRDA) and Liberty Broadband (LBRDK) are both down 17.5%. Altice’s 9.3% drop outpaces peers due to its higher debt load and exposure to legacy broadband markets. The sector’s technicals are bearish, with the 52-week low at $1.52 just 23% above current levels. Regulatory uncertainty and subscriber attrition are creating a perfect storm for the entire industry.

Bearish Options and ETF Playbook for a Volatile Sector
• 200-day MA: $2.52 (near), RSI: 88.42 (overbought), Bollinger Bands: $1.94–$3.11 (wide)
• Key support: $2.35 (200D MA), resistance: $2.91 (intraday high)
The technicals suggest a continuation of the downtrend, with RSI near overbought levels and Bollinger Bands at extremes. Two options stand out for short-term bearish exposure:
• ATUS20250815P2.5 (Put)

• Strike: $2.50, Expiry: 2025-08-15

• IV: 66.99% (high volatility), Leverage: 26.85% (moderate), Delta: -0.304 (moderate sensitivity), Theta: -0.001877 (slow decay), Gamma: 0.747 (high price sensitivity), Turnover: 2,090 (liquid)

• Why: High gamma and moderate delta position this put to profit from a 5% downside move. Projected payoff: max(0, $2.54 - $2.50) = $0.04 per share. Leverage amplifies returns if the stock breaks below $2.50.

• ATUS20251219P2 (Put)

• Strike: $2.00, Expiry: 2025-12-19

• IV: 26.66% (low volatility), Leverage: 537.00% (extreme), Delta: -0.027 (low sensitivity), Theta: -0.000073 (negligible decay), Gamma: 0.137 (low sensitivity), Turnover: 0 (illiquid)

• Why: Despite low liquidity, the 537% leverage ratio makes this a high-risk, high-reward bet for a 10% drop. Projected payoff: max(0, $2.54 - $2.00) = $0.54 per share. Only suitable for aggressive traders.

For ETF exposure, no leveraged ETF is available. Focus on short-dated puts with high gamma (ATUS20250815P2.5) to capitalize on immediate volatility. If $2.35 support breaks, the 52-week low of $1.52 becomes the new target.

Backtest Altice USA Stock Performance
After a -9% intraday plunge, ATUS has historically shown mixed short-to-medium-term performance. The 3-day win rate is 49.13%, the 10-day win rate is 43.88%, and the 30-day win rate is 44.83%. While there is a slight chance of positive returns immediately after the plunge, the overall trend suggests that negative returns may persist in the following days.

Act Fast: Altice’s Freefall May Deepen Before Bottoming
The confluence of regulatory uncertainty and technical overbought conditions suggests Altice’s selloff is far from over. Investors should prioritize short-dated puts (ATUS20250815P2.5) for immediate exposure to a 5% downside scenario. Watch for a breakdown below $2.35 (200D MA) to trigger a wave of stop-loss selling. Sector leader Comcast (CMCSA), down 4.39% intraday, underscores the sector’s fragility. Aggressive traders may consider the extreme-leverage put (ATUS20251219P2), but only if they’re prepared for illiquidity and volatility. Position yourself now—this is a high-conviction bearish setup.