Amkor Technology Plummets 8.9%: What's Fueling the Selloff?

Summary
• Amkor Technology (AMKR) trades at $39.995, down 8.9% from its previous close of $43.91
• Intraday range spans $39.12 to $43.65, reflecting sharp volatility
• Options chain shows 257% surge in $40 put volume ahead of December 19 expiration

Amkor Technology’s stock has plunged to a 52-week low amid a broader semiconductor sector selloff. The sharp decline, driven by technical breakdowns and heightened options market activity, has triggered algorithmic selling and bearish positioning. With the stock trading near its 200-day moving average and RSI approaching overbought territory, the technical setup favors short-term volatility. Investors must act swiftly as the sector’s elevated valuation multiple and macroeconomic concerns amplify downside risks.

Sector-Wide Selloff and Technical Breakdowns Trigger Sharp Decline
Amkor Technology’s 8.9% intraday drop is part of a broader semiconductor equipment sector selloff, with Applied Materials (AMAT) down 1.34%. The stock has pierced below its 30-day moving average of $37.36 and is trading near its 200-day average of $24.65, triggering algorithmic selling. Options data reveals a 257% surge in put volume at the $40 strike price, with implied volatility spiking to 57.41%. This aligns with a bearish RSI reading of 78.76 and a MACD histogram contraction, signaling momentum is shifting decisively lower. The sector’s 1.7x EV/Revenue multiple remains elevated compared to its 10-year average of 1.2x, creating a valuation gap that could accelerate selling pressure if macroeconomic concerns persist.

Semiconductor Sector Under Pressure as AMAT Leads Sell-Off
The semiconductor equipment sector is experiencing broad-based weakness, with Applied Materials (AMAT) down 1.34% and Invesco Semiconductors ETF (PSI) falling 2.17%. AMKR’s 8.9% drop outpaces the sector’s average decline, reflecting its higher leverage to near-term earnings risks. The sector’s 1.7x EV/Revenue multiple remains elevated compared to its 10-year average of 1.2x, creating a valuation gap that could accelerate selling pressure if macroeconomic concerns persist. Institutional investors have reduced holdings in AMKR, with 193 funds cutting positions in Q3 2025, while 207 added shares.

Leveraged ETFs and Put Options for Short-Term Volatility
• 200-day SMA: $24.65 (below current price)
• RSI: 78.76 (overbought)
• MACD: 3.42 (bearish divergence)
• Bollinger Bands: $26.48 (lower) to $50.89 (upper)
• Leveraged ETF: First Trust Nasdaq Semiconductor ETF (FTXL) at $125.98, down 1.39%, offers leveraged exposure to the sector’s downward trend.

With AMKR trading near its 200-day moving average and RSI approaching overbought territory, the technical setup favors bearish positioning. The AMKR20260116P39.59 put option stands out: it has 57.41% implied volatility, 86.51% volume surge, and a delta of -0.4236, offering strong leverage (17.10%) for a $39.59 strike. The AMKR20260116P43 put option, with 60.10% IV and 71.92% leverage, provides asymmetric upside if the stock rebounds above $43 support. A 5% downside scenario to $38.00 would yield a 25% payoff on the put, while the call’s -55% price change ratio suggests limited downside risk.

AMKR20260116P39.59 (Put):
• Code: AMKR20260116P39.59
• Strike: $39.59
• Expiration: 2026-01-16
• IV: 57.41% (moderate)
• LVR: 17.10% (high)
• Delta: -0.4236 (sensitive to price)
• Theta: -0.020476 (moderate decay)
• Gamma: 0.057284 (high sensitivity)
• Turnover: 44,012 (high liquidity)
• Payoff at 5% downside: $1.59 (39.995 → 38.00)
• Ideal for bearish bets with high leverage and liquidity.

AMKR20260116P43 (Put):
• Code: AMKR20260116P43
• Strike: $43
• Expiration: 2026-01-16
• IV: 60.10% (high)
• LVR: 8.99% (moderate)
• Delta: -0.6073 (high sensitivity)
• Theta: -0.010934 (low decay)
• Gamma: 0.0537 (high sensitivity)
• Turnover: 61,503 (very high liquidity)
• Payoff at 5% downside: $5.00 (39.995 → 38.00)
• Strong short-term potential with high liquidity and delta.

Backtest Amkor Technology Stock Performance
The backtest of AMKR's performance after a -9% intraday plunge from 2022 to now shows favorable results. The 3-Day win rate is 55.60%, the 10-Day win rate is 55.60%, and the 30-Day win rate is 53.88%, indicating that the stock tends to recover positively in the short term. The maximum return during the backtest was 7.31% over 30 days, suggesting that while there is volatility, AMKR can offer decent returns in the aftermath of a significant drop.

Urgent Action Required: Short-Term Volatility Presents Defined-Risk Opportunities
Amkor Technology’s sharp decline creates a high-probability short-term trading opportunity as the stock tests critical support levels. With the sector leader Applied Materials (AMAT) down 1.34%, investors should prioritize defensive positioning while capitalizing on elevated options volatility. Key levels to watch include the $40.65 intraday support and $37.84 next-level support. Aggressive traders may consider the AMKR20260116P39.59 put for a defined-risk play, while the sector ETF FTXL offers broader exposure to the semiconductor selloff. Immediate action is warranted as the RSI approaches overbought territory and the 200-day moving average looms as a critical psychological threshold.