Archer Aviation Plunges 9.89% as Market Volatility Intensifies: What's Fueling the Selloff?

Summary
• Archer Aviation (ACHR) trades at $10.11, down 9.89% from its previous close of $11.22
• Intraday range spans $10.11 to $11.08, reflecting sharp bearish momentum
• Recent strategic wins, including Korean Air partnership and patent acquisitions, contrast with today’s selloff

Archer Aviation’s stock has plunged nearly 10% in intraday trading, marking one of its steepest declines this year. The sharp drop follows a week of mixed news, including a landmark patent acquisition and a high-profile partnership with Korean Air, yet the market appears to be recalibrating after a recent rally. With the stock testing key support levels and options volatility spiking, investors are left to decipher whether this is a short-term correction or a sign of deeper skepticism about the eVTOL sector’s trajectory.

Profit-Taking and Market Sentiment Drive Sharp Decline
The 9.89% intraday drop in Archer Aviation’s stock appears driven by profit-taking following a recent surge fueled by strategic advancements. While the company secured a pivotal partnership with Korean Air and acquired Lilium’s patent portfolio in October, today’s selloff suggests traders are locking in gains after a 264% annual rally. The absence of new catalysts—coupled with broader market jitters over eVTOL regulatory hurdles and capital burn—has intensified selling pressure. Technical indicators like the RSI (34.83) and MACD histogram (-0.17) confirm oversold conditions, but the lack of immediate bullish news has left the stock vulnerable to short-term volatility.

eVTOL Sector Under Pressure as Joby Aviation Slides 9.5%
Archer Aviation’s selloff aligns with broader weakness in the eVTOL sector, where rival Joby Aviation (JOBY) also plunged 9.54% intraday. Both stocks face shared headwinds, including regulatory uncertainty and high cash burn, despite recent partnerships and product milestones. The sector’s leveraged ETFs (if available) would typically amplify such moves, but the absence of a direct ETF for ACHR means the decline is more idiosyncratic. However, the synchronized drop underscores investor caution about the sector’s path to profitability.

Options and Technicals: Navigating the Volatility
• 200-day average: 9.63 (below current price)
• RSI: 34.83 (oversold)
• MACD: 0.146 (bullish), Signal Line: 0.3196 (bearish), Histogram: -0.1739 (bearish divergence)
• Bollinger Bands: Upper (13.55), Middle (11.87), Lower (10.19) (price near lower band)

Key technical levels to watch include the 200-day support at $9.63 and the Bollinger Band floor at $10.19. With RSI in oversold territory and MACD showing bearish divergence, the stock may find near-term support but lacks immediate catalysts for a rebound. The options chain reveals two high-conviction plays for bearish scenarios:

• ACHR20251107P10 (Put):
- Strike: $10, Expiry: 2025-11-07
- IV: 121.96% (extreme volatility), Delta: -0.4248 (moderate sensitivity), Theta: -0.0141 (slow decay), Gamma: 0.2876 (high sensitivity)
- Turnover: 135,425 (liquid)
- Payoff (5% downside): $0.55 (max gain if price drops to $9.60)
- This put offers asymmetric upside in a sharp decline, leveraging high gamma and IV.

• ACHR20251114P10 (Put):
- Strike: $10, Expiry: 2025-11-14
- IV: 99.42% (elevated), Delta: -0.4263 (moderate sensitivity), Theta: -0.0129 (slow decay), Gamma: 0.2141 (moderate sensitivity)
- Turnover: 77,370 (liquid)
- Payoff (5% downside): $0.55 (max gain if price drops to $9.60)
- This longer-dated put balances time decay with liquidity, ideal for a mid-term bearish bet.

Aggressive bears should prioritize ACHR20251107P10 for its high gamma and IV, while ACHR20251114P10 offers a safer, time-extended alternative.

Backtest Archer Aviation Stock Performance
Key findings (concise) • 17 distinct –10 % (or worse) one-day drops were identified in ACHR.N since 2022-01-03. • On average, the stock recovered by about +17 % over the subsequent 30 trading days, with a ~53 % win-rate on day 30. • Despite the positive drift, none of the daily excess-return observations reached conventional statistical significance, underscoring high event-to-event variability. • Median peak gain occurred around day 16 (~+12 %). Traders exploiting this pattern should pair it with strict risk controls, as drawdowns after large plunges can still be substantial.To explore the full event-study curves and drill into individual occurrences, please refer to the interactive module below.(Assumptions: 1) Used daily close-to-close returns as an approximation of intraday –10 % plunges; 2) Backtest period capped at the last available trading day, 2025-10-31.)

Archer Aviation at Crossroads: Hold for Breakout or Exit on Weakness?
Archer Aviation’s 9.89% drop has brought its stock to critical junctures, with support at $9.63 and resistance at $11.87. While the company’s strategic momentum remains intact, the market’s bearish technicals and sector-wide jitters suggest caution. Investors should monitor the 200-day line and Bollinger Band levels for directional clues. With Joby Aviation also down 9.54%, the eVTOL sector’s near-term outlook remains fragile. For now, short-term traders may consider ACHR20251107P10 for bearish exposure, while long-term holders should wait for a confirmed breakout above $11.87 before re-entering.