Core Scientific (CORZ) Plunges 11% Amid Merger Uncertainty: What’s Next for the Bitcoin Miner?

Summary
• Core Scientific (CORZ) tumbles 11.08% intraday to $17.099, its lowest since October 16, 2025
• Proxy advisors ISS and Two Seas Capital urge shareholders to reject CoreWeave’s $9B all-stock bid
• Options volatility surges, with 10/31 P17.5 put options seeing 182.98% price change

Core Scientific’s stock is in freefall as institutional investors and proxy advisors rally against CoreWeave’s proposed $9 billion acquisition. The 11.08% intraday drop—dragging the stock below its 200-day moving average of $12.53—has ignited a frenzy in options markets, with leveraged puts and calls trading at stratospheric implied volatilities. With the October 30 shareholder vote looming, the battle for CORZ’s future is heating up, and the stock’s technicals suggest a pivotal inflection point.

Proxy War and Merger Rejection Spark Selloff
The collapse in CORZ’s share price stems from a perfect storm of institutional resistance to CoreWeave’s $20.40-per-share offer. Proxy advisor ISS and major shareholder Two Seas Capital have both declared the deal structurally flawed and undervalued, citing CoreWeave’s stock volatility and lack of board support. CoreWeave CEO Michael Intrator’s refusal to raise the bid—calling it a “nice to have, not a need to have”—has further eroded confidence. The market’s rejection of the merger is evident in CRWV’s 4.3% decline versus CORZ’s 1.6% intraday rebound earlier this week, signaling a preference for independence. With the stock now trading near its 52-week low of $6.20, short-term technical indicators like the RSI (60.1) and MACD (-0.0068) suggest a bearish reversal is underway.

Options Playbook: Leveraged Puts and Gamma-Driven Bets
• 200-day average: $12.53 (below current price)
• RSI: 60.1 (neutral to bearish)
• MACD: -0.0068 (bearish crossover)
• Bollinger Bands: $16.31 (lower band) vs. $17.10 (current price)

With CORZ trading near its 52-week low and technical indicators flashing bearish signals, the options market is pricing in a sharp continuation. Two contracts stand out for short-term volatility plays:

• CORZ20251031P17.5 (Put Option)
- Strike: $17.50
- Expiration: 2025-10-31
- IV: 101.99% (extreme volatility)
- Leverage: 12.91%
- Delta: -0.509 (moderate sensitivity)
- Theta: -0.0177 (slow time decay)
- Gamma: 0.1376 (high sensitivity to price swings)
- Turnover: 10,573 contracts
- Payoff (5% down): $0.75 per share (max $750 for 100 shares)
- Why it works: This put option offers asymmetric leverage with high gamma to capitalize on a potential breakdown below $16.50. The 101.99% IV reflects market anticipation of a sharp move.

• CORZ20251107P17.5 (Put Option)
- Strike: $17.50
- Expiration: 2025-11-07
- IV: 66.55% (moderate volatility)
- Leverage: 14.93%
- Delta: -0.5199 (moderate sensitivity)
- Theta: -0.0053 (minimal time decay)
- Gamma: 0.1616 (extreme sensitivity)
- Turnover: 115,820 contracts
- Payoff (5% down): $0.75 per share (max $750 for 100 shares)
- Why it works: The 11/7 expiration offers more time for the stock to decline, with 16.16% gamma amplifying gains if CORZ breaks below $16.30. High turnover ensures liquidity.

Action Alert: Aggressive bears should prioritize the 10/31 P17.5 for a short-term play, while the 11/7 P17.5 suits a longer-term bearish thesis. Both contracts offer 10-15% leverage with gamma-driven amplification.

Backtest Core Scientific Stock Performance
Below is an interactive report that summarises the –11 %-intraday-plunge strategy on Core Scientific (ticker CORZ) from January 2022 to 22 Oct 2025. Key take-aways (details inside the module): • Exceptional cumulative return (+477 %) driven by a handful of sharp post-plunge rebounds. • High risk: the worst peak-to-trough draw-down reached ~65 %. • No explicit risk controls (stop-loss / take-profit) were applied; trades closed at the next-day close (T+1). • Trade frequency is low: signals only occur on days when the intraday low is at least 11 % below that day’s open. You can explore the full statistics, trade list and equity curve in the module.Feel free to explore the module for deeper insights or let me know if you’d like to refine the entry/exit rules (e.g., add stop-loss/take-profit or vary the holding period) for further optimisation.

Critical Crossroads: Vote, Volatility, and the Path to $16.30
Core Scientific’s 11% selloff has positioned it at a pivotal juncture. With the October 30 shareholder vote approaching, the stock’s fate hinges on whether institutional investors side with ISS and Two Seas Capital or CoreWeave’s board. Technically, the $16.30 Bollinger Band and $13.44 200-day support are critical levels to watch. For now, the options market is pricing in a 66.55-101.99% implied volatility range, favoring bearish plays. Microsoft (MSFT), the sector leader up 0.23%, offers a stark contrast to CORZ’s turmoil. Act now: Short-term bears should target the 10/31 P17.5 put, while longer-term bears can secure the 11/7 P17.5. Monitor the vote outcome and $16.30 support for directional clarity.