Celestica Plummets 5.77%: What's Behind the Sudden Selloff?

Summary
• Celestica (CLS) drops 5.77% to $246.00, its lowest since October 14
• Intraday range of $238.23–$249.00 highlights volatile session
• Options chain sees heavy activity in October 17 $240 put (CLS20251017P240) with 81.82% price gain

Celestica’s sharp intraday decline has ignited market speculation, with the stock trading 5.77% below its previous close. The move follows mixed sector performance and a flurry of options trading activity. With the Communication Equipment sector showing resilience led by Cisco’s 1.47% gain, investors are dissecting whether this selloff reflects broader market rotation or specific execution risks for Celestica’s AI infrastructure bets.

Profit-Taking and Execution Risks Weigh on Momentum
Celestica’s selloff appears driven by profit-taking after a 10.17% surge in early September and lingering concerns about scaling its AI-edge infrastructure products. Recent product launches like the SC6110 storage controller and ES1500 campus switch, while technically robust, face skepticism about adoption timelines. The stock’s 52-week high of $270.15 and 47.6x dynamic P/E ratio suggest investors are recalibrating expectations amid broader market volatility. Short-term technical indicators like the -0.8232 MACD histogram and 51.59 RSI near neutrality also signal a potential pullback after months of bullish momentum.

Communication Equipment Sector Mixed as Celestica Dips
The Communication Equipment sector remains split, with Cisco Systems (CSCO) rising 1.47% on strong enterprise demand. Celestica’s 5.77% decline contrasts with sector resilience, highlighting its exposure to niche AI infrastructure markets versus broader networking growth. While Cisco benefits from stable enterprise spending, Celestica’s reliance on high-margin AI hardware projects creates asymmetric risk during sector rotations.

Options Playbook: Capitalizing on Volatility and Key Levels
• 200-day MA: $142.82 (far below) • RSI: 51.59 (neutral) • MACD: 7.08 (bullish) • Bollinger Bands: $232.74–$264.21 (wide range)

Key levels to watch include the $248.48 30-day SMA and $232.74 lower Bollinger Band. With the RSI near 50 and MACD still positive, short-term bears may target $235–$240 support. The 52-week low of $55.30 remains a distant floor, but near-term volatility suggests $235–$250 as critical battleground.

Top Options:
• CLS20251017P240 (Put): Strike $240, Expiry 10/17, IV 85.39%, Leverage 45.84%, Delta -0.346, Theta -0.0977, Gamma 0.0167, Turnover 449,533
- High IV (85.39%) suggests strong bearish sentiment; 45.84% leverage amplifies gains if $240 breaks. Theta decay (-0.0977) favors short-term holding.
• CLS20251017P242.5 (Put): Strike $242.5, Expiry 10/17, IV 85.39%, Leverage 45.84%, Delta -0.346, Theta -0.0977, Gamma 0.0167, Turnover 449,533
- Similar profile to CLS20251017P240 but with tighter strike. Ideal for aggressive short-term bearish plays if $242.50 holds as resistance.

Payoff Analysis: A 5% downside to $233.70 would yield $6.80 profit for CLS20251017P240 (max $240–$233.70 = $6.30). CLS20251017P242.5 would net $8.80 ($242.50–$233.70). Both options offer asymmetric risk/reward with high liquidity (turnover >400k).

Aggressive bulls may consider CLS20251017C252.5 into a bounce above $252.50.

Backtest Celestica Stock Performance
It turns out that, after scanning Celestica’s trading history from 2022-01-01 through 2025-10-14, the stock never registered an intraday draw-down of 6 % or more (measured as that day’s low price versus the previous session’s close). Because the event list is empty, the event-back-test engine had no data to work on, which triggered the internal error you saw.How would you like to proceed?1. Relax the trigger (e.g., −5 % or −4 %) to see how the stock behaves after smaller one-day plunges.2. Switch the definition from intraday low to daily close (i.e., close-to-close return ≤ −6 %).3. Extend the historical window further back (prior to 2022).4. Abandon the plunge filter and test some different pattern altogether.Let me know which option (or combination) you prefer, and I’ll rerun the analysis accordingly.

Rebound or Reversal? Key Levels to Watch Now
Celestica’s selloff reflects a mix of profit-taking and sector rotation rather than fundamental deterioration. With the RSI stabilizing near 50 and MACD still positive, a rebound to $248.48 is plausible if $235 support holds. Investors should monitor Cisco’s 1.47% gain as a sector barometer and Celestica’s ability to retest its 52-week high of $270.15. Watch for $235 breakdown or regulatory reaction.