Core Scientific Plummets 9.7% as Short-Term Bearish Momentum Intensifies – What’s Fueling the Selloff?

Summary
• Core Scientific (CORZ) trades at $13.645, down 9.7% from its $14.55 open
• Intraday range spans $13.45–$14.74 amid heavy turnover of 17.28 million shares
• Sector news highlights outsourced payroll services but no direct corporate updates for CORZ

Core Scientific’s sharp intraday selloff has captured market attention, with the stock trading nearly 10% below its opening price. While the Data Processing & Outsourced Services sector remains active due to news on payroll and data entry solutions, CORZ’s decline appears driven by technical factors and options activity. The stock’s 52-week range of $6.20–$18.63 suggests a volatile environment, with key support/resistance levels now under scrutiny.

Technical Divergence and Options Pressure Trigger Sharp Decline
The selloff in Core Scientific reflects a clash between short-term bullish momentum and long-term range-bound dynamics. The stock’s 66.84 RSI reading indicates overbought conditions, prompting profit-taking. Meanwhile, the MACD histogram (0.13) shows fading bullish momentum, and the price’s proximity to the 30-day MA ($14.10) has failed to attract buyers. Options data reveals aggressive bearish positioning, with the $13.50 put option (CORZ20250822P13.5) seeing 4,041 contracts traded and a 146% price surge, amplifying downward pressure.

Data Processing Sector Steadies as Equinix (EQIX) Drives Mixed Momentum
Bearish Options and ETF Positioning: Navigating Volatility in CORZ
• 200-day MA: $12.35 (below current price)
• RSI: 66.84 (overbought)
• Bollinger Bands: Price at $13.65, near lower band ($12.60)
• MACD: 0.287 (bullish), but signal line at 0.156 suggests weakening trend

Key levels to monitor include the 30-day support ($13.39–$13.50) and 200-day support ($12.07–$12.31). The stock’s short-term bearish bias aligns with the 52-week low ($6.20) as a long-term floor. While no leveraged ETFs are available, options activity suggests aggressive short-term positioning.

Top Options Picks:
• CORZ20250822P13.5 (Put):
- Strike: $13.50
- Expiration: 2025-08-22
- IV: 85.92% (high volatility)
- Leverage: 21.51% (moderate)
- Delta: -0.414 (moderate sensitivity)
- Theta: -0.0109 (slow time decay)
- Turnover: 190,431 (high liquidity)
- Gamma: 0.199 (responsive to price swings)
- Payoff (5% downside): $0.38 (max(0, $12.96 - $13.50) = $0.54).
This put option stands out for its high liquidity and gamma, offering strong leverage if the stock breaks below $13.50.

• CORZ20250822C14 (Call):
- Strike: $14.00
- Expiration: 2025-08-22
- IV: 66.95% (moderate)
- Leverage: 26.99% (moderate)
- Delta: 0.465 (moderate sensitivity)
- Theta: -0.0556 (rapid time decay)
- Turnover: 273,898 (high liquidity)
- Gamma: 0.261 (high responsiveness)
- Payoff (5% downside): $0.00 (max(0, $12.96 - $14.00) = $0).
This call option’s high gamma and liquidity make it a speculative play for a rebound above $14.00, though time decay is a risk.

Trading Insight: Aggressive bears should target CORZ20250822P13.5 into a breakdown below $13.50. Bulls may consider CORZ20250822C14 if the stock retests the 30-day MA ($14.10).

Backtest Core Scientific Stock Performance
The performance of CORZ after a -10% intraday plunge has historically shown positive short-to-medium-term gains. The backtest data indicates that the 3-day win rate is 59.76%, the 10-day win rate is 63.91%, and the 30-day win rate is 69.82%, suggesting that the ETF tends to rebound over various time frames.

Critical Support Levels and Sector Leadership Signal Immediate Action
The selloff in Core Scientific reflects a technical breakdown rather than fundamental catalysts, with key support at $13.39–$13.50 now in focus. While the sector leader Equinix (EQIX) remains stable (-0.39%), CORZ’s volatility demands close monitoring of the 200-day MA ($12.35) as a critical floor. Investors should prioritize short-term options like CORZ20250822P13.5 for bearish exposure and watch for a potential rebound above $14.00. Act now: Secure short positions below $13.50 or prepare for a bounce with the $14.00 call if the 30-day MA holds.