CELU Plunges 34%: Liquidity Crunch and Short-Seller Pressure Ignite Biotech Sector Volatility

Summary
• Celularity (CELU) trades at $2.59, down 34.26% from $3.94
• Intraday range spans $2.225 to $3.1539, signaling sharp bearish reversal
• Turnover surges to 812,104 shares, 6.07% of float

Celularity’s dramatic intraday collapse has ignited market speculation as the stock trades near its 52-week low of $1.00. With the biotech sector abuzz over Cytokinetics’ phase 3 cardio win and Amgen’s $600M R&D site announcement, CELU’s underperformance raises urgent questions about catalysts, technical breakdowns, and options positioning.

Liquidity Crunch and Short-Seller Pressure Trigger Sharp Drop
The 34.26% intraday plunge in CELU reflects a confluence of weak fundamentals and aggressive shorting. With a dynamic PE of -0.78 and no recent company news, the stock lacks positive catalysts. High short interest is evident in the options chain: the September 19 $2.5 put (CELU20250919P2.5) has surged 250% in price while the same strike call (CELU20250919C2.5) fell 70%. This divergence suggests coordinated shorting activity exploiting the stock’s lack of support from earnings or pipeline updates.

Biotech Sector Mixed as AMGN Drags, CELU Underperforms
While the biotech sector’s AMGN leader fell 0.37%, CELU’s underperformance suggests deeper issues. Sector-wide caution is evident in Amgen’s decline and Cytokinetics’ rally, but CELU’s liquidity crisis and technical breakdown demand immediate attention. The stock’s 34% drop far outpaces sector volatility, highlighting structural fragility.

Options Playbook: Capitalizing on Volatility and Technical Breakdowns
• 200-day MA: $2.22 (at support)
• RSI: 63.3 (neutral but bearish bias)
• MACD: 0.2696 vs. signal line 0.2737 (bearish crossover)
• Bollinger Bands: Price at $2.59 vs. lower band $2.93 (oversold territory)

Key levels to watch: 30-day support at $3.26 and 200-day support at $2.00. With implied volatility at 185.22% for the September 19 $2.5 put, this contract offers high leverage (7.54%) and liquidity (1,055 turnover). For a 5% downside scenario (ST = $2.46), payoff would be $0.04 per share. The October 17 $2.5 put (CELU20251017P2.5) at 117.07% IV provides extended bearish exposure with 34.2% gamma sensitivity. Aggressive bulls may consider the September 19 $2.5 call (CELU20250919C2.5) if the stock rebounds above $3.15, despite its 70% price decay.

Backtest Celularity Stock Performance

CELU at Critical Juncture: Immediate Action Required
The 34% drop has positioned CELU near its 52-week low, with technical indicators flashing caution. While the biotech sector’s AMGN leader fell 0.37%, CELU’s liquidity crisis demands immediate attention. Investors must monitor the $2.00 support level and sector news for potential catalysts. With options volatility at extreme levels, short-term traders should prioritize the September 19 $2.5 put for bearish exposure while watching for a potential bounce above $3.15. AMGN’s -0.37% move underscores sector-wide caution, but CELU’s liquidity crisis demands immediate action.