Bilibili Plunges 5.45% Amid Tech Sector Volatility – What’s Fueling the Selloff?

Summary
• Bilibili (BILI) trades at $25.85, down 5.45% intraday, with a 52-week range of $14.47–$31.77.
• Intraday high/low: $26.405–$25.72, with a dynamic PE ratio of 182.27.
• Sector leader Alphabet A (GOOGL) rises 0.21%, contrasting BILI’s decline.
• Options activity surges, with 20 contracts traded, including high-leverage puts and calls.
Today’s selloff in BILI defies a broadly stable tech sector, as Alphabet’s modest gains highlight divergent momentum. With technical indicators flashing mixed signals and options volatility spiking, the move raises urgent questions about catalysts and strategy.

Technical Overbought Correction and Sector Rotation
BILI’s 5.45% drop reflects a technical overbought correction after a short-term bullish trend. The RSI (74.26) and MACD (0.98) suggest exhaustion in the rally, while Bollinger Bands show the stock near the lower band ($20.79–$29.16). Sector rotation into AI-driven plays like Alphabet (GOOGL) and TikTok-related news (e.g., Oracle/Silver Lake investment) may have diverted capital from content platforms like BILI. No direct company-specific news triggered the move, pointing to broader market dynamics.

Sector Divergence as GOOGL Rises Despite BILI's Slide
While BILI plunges, the Internet Content & Information sector leader Alphabet A (GOOGL) gains 0.21%, underscoring rotation into AI and cloud infrastructure plays. TikTok’s U.S. deal and Momenta’s $6B valuation highlight AI’s dominance, overshadowing content platforms. BILI’s 52-week low ($14.47) and high (31.77) suggest a bearish bias, contrasting with the sector’s mixed performance. This divergence signals a shift in investor priorities toward AI infrastructure over content creation.

Options Volatility and Technical Levels: A Bearish Setup
• Technical Indicators:
- RSI: 74.26 (overbought)
- MACD: 0.98 (bullish), Signal Line: 0.85, Histogram: 0.13 (positive divergence)
- Bollinger Bands: Lower band at $20.79 (key support)
- 200-day MA: $20.40 (below current price)
• Trading Setup: BILI is testing critical support at $24.98 (middle Bollinger Band) and 200-day MA. A break below $24.72 (200D support range) could accelerate the decline. Short-term bearish momentum is reinforced by the RSI overbought condition and high implied volatility (IV) in options.
• Top Options:
- BILI20251003P24.5 (Put):
- Strike: $24.50, Expiry: 2025-10-03, IV: 48.34%, Delta: -0.21, Theta: -0.0037, Gamma: 0.1565, Turnover: 2,676
- Why: High gamma (0.1565) ensures sensitivity to price swings; 48.34% IV suggests fair volatility. A 5% downside to $24.57 would trigger $0.07 profit per contract.
- BILI20251003C26 (Call):
- Strike: $26.00, Expiry: 2025-10-03, IV: 50.26%, Delta: 0.49, Theta: -0.1104, Gamma: 0.2073, Turnover: 9,903
- Why: High gamma (0.2073) and moderate delta (0.49) offer leverage on directional moves. A 5% drop to $24.57 would result in a $1.43 loss, but the high turnover ensures liquidity.
• Action: Aggressive bears may consider BILI20251003P24.5 for a short-term play, while hedging with BILI20251003C26 to cap downside risk. Monitor the $24.98 level; a break could validate the bearish case.

Backtest Bilibili Stock Performance
To quantify Bilibili’s (BILI) behaviour after a –5 % intraday plunge we need a precise list of the dates when that event occurred (i.e., the day’s low price ≤ 95 % of the previous close). I’ve already fetched the full daily OHLC data for BILI from 2022-01-01 through today. Next, we must isolate the exact event dates and feed them into the event-backtest engine.Two practical ways forward:1. I generate the list automatically (recommended). • Rule: “day’s low ≤ previous-day close × 0.95”. • I’ll parse the OHLC file and create an event-date file, then run the back-test.2. You supply (or adjust) the rule or any specific dates you’d like analysed.Please let me know which option you prefer (or any modifications), and I’ll proceed with the back-test immediately.

Beware the $24.98 Support Break – Immediate Action Needed
BILI’s selloff reflects a technical overbought correction and sector rotation into AI infrastructure. The RSI overbought condition and Bollinger Band positioning suggest a near-term test of $24.98 support. A break below this level could trigger a cascade to the 200-day MA ($20.40). Investors should watch Alphabet A (GOOGL, +0.21%) for sector cues. Immediate action: Short BILI20251003P24.5 if $24.98 breaks, or Buy-to-Open BILI20251003C26 for a directional hedge. The key is to act before the October 3 expiry amplifies volatility.