Clearside Biomedical Plunges 65% on Chapter 11 Filing and Strategic Sale Process

Summary
• Clearside Biomedical (CLSD) slumps 65.23% intraday to $0.9458, trading near its 52-week low of $0.80.
• The stock opens at $0.82 and surges to $1.0499 before collapsing, with a turnover rate of 105.32%.
• The company files for Chapter 11 bankruptcy, initiating a Section 363 auction of its SCS Microinjector platform and CLS-AX pipeline.

Clearside Biomedical’s stock has imploded on news of its Chapter 11 filing and auction process, with the biotech giant trading near its 52-week low. The sharp decline reflects investor panic over the company’s financial distress and the uncertain fate of its key assets. The stock’s intraday range—from $0.80 to $1.0499—underscores the volatility triggered by the bankruptcy filing and the proposed sale of its core intellectual property.

Bankruptcy Filing and Strategic Sale Drive Sharp Decline
Clearside Biomedical’s stock collapse is directly tied to its Chapter 11 filing and the initiation of a Section 363 auction process. The company announced its intent to sell assets—including its SCS Microinjector platform, CLS-AX program, and licensing agreements—under court supervision. This move signals a prioritization of creditor claims over equity holders, triggering a sell-off as investors anticipate severe dilution or loss. The bankruptcy filing, coupled with the company’s negative operating margins (-689.76%) and a Piotroski F-Score of 3, confirms its dire financial state. The auction process, while aiming to maximize stakeholder value, has left equity holders in limbo, compounding the downward pressure on the stock.

Options Analysis and ETF Strategy in a Bearish Climate
• RSI: 26.30 (oversold)
• MACD: -0.2087 (bearish), Signal Line: -0.0489
• 200-Day MA: $1.52 (well below current price)
• Bollinger Bands: $2.71–$4.52 (price near lower band)

Technical indicators confirm a short-term bearish trend, with the stock trading near its 52-week low and RSI in oversold territory. The 200-day moving average ($1.52) remains a critical resistance level. Given the bankruptcy filing and auction uncertainty, a defensive strategy is warranted. The options chain reveals two call contracts with high leverage ratios (192.88%) but low liquidity (zero turnover).

Top Options Contracts:
• CLSD20260116C1 (Call, $1 strike, Jan 16, 2026):
- IV Ratio: 10.33% (low)
- Delta: 0.229 (moderate sensitivity)
- Theta: -0.00027 (slow time decay)
- Gamma: 7.91 (high sensitivity to price swings)
- Leverage: 192.88%
- Turnover: 0
- Payoff (5% downside): $0.045 (minimal gain)
- Rationale: High leverage and gamma make this contract responsive to volatility, but low IV and turnover limit its utility.

• CLSD20260417C1 (Call, $1 strike, Apr 17, 2026):
- IV Ratio: 5.07% (extremely low)
- Delta: 0.2697 (moderate sensitivity)
- Theta: -0.000107 (slow time decay)
- Gamma: 10.72 (high sensitivity to price swings)
- Leverage: 192.88%
- Turnover: 0
- Payoff (5% downside): $0.045 (minimal gain)
- Rationale: Similar to the January contract, this option offers high leverage but suffers from negligible liquidity and low IV, making it unsuitable for aggressive plays.

Trading Outlook: A bearish bias is justified, with key support at $0.80 (52-week low) and resistance at $1.52 (200-day MA). Investors should monitor the auction process and court rulings for catalysts. Given the lack of viable options, a cash-secured short position near $0.95 could be considered, targeting a breakdown below $0.80.

Backtest Clearside Biomedical Stock Performance
Below is the quantitative back-test summary for “buying Clearside Biomedical (CLSD.O) immediately after any intraday plunge of at least 65 %, with a 120 % take-profit, 30 % stop-loss and a 30-day maximum holding period (Jan-2022 → Nov-2025).”Key statistics (2022-01-01 → 2025-11-24):• Total strategy return: –3.22 %• Annualised return: 4.33 %• Maximum drawdown: 42.03 %• Sharpe ratio: 0.12Interpretation:– Only one qualifying 65 % plunge occurred during the sample window, leading to a single trade that closed at –3.22 %. – Despite an apparently attractive risk/reward control (120 % TP vs 30 % SL), the extremely low event frequency and high volatility produced a poor risk-adjusted result. – For more robust insight, consider testing milder plunge thresholds (e.g., 40 % or 50 %) or widening the sample period/ticker universe.You can inspect the interactive back-test panel in the canvas above for full entry/exit timing, equity curve and distribution details.

Critical Crossroads for Clearside: Watch for Auction Outcomes and Legal Developments
Clearside Biomedical’s stock collapse reflects the gravity of its Chapter 11 filing and the uncertain fate of its core assets. The auction process, while designed to maximize creditor value, leaves equity holders in a precarious position. Technical indicators and options data suggest a continuation of the bearish trend, with the 200-day MA acting as a critical resistance level. Investors should closely monitor the court’s approval of bidding procedures, the identity of stalking-horse bidders, and any legal challenges that could delay the sale. Meanwhile, the biotech sector’s leader, Regeneron (REGN), remains relatively stable with a 0.49% intraday gain, highlighting the sector’s divergence from CLSD’s turmoil. For CLSD, the immediate focus must be on auction outcomes and liquidity developments—watch for $0.80 breakdown or court rulings to dictate next steps.