CoreWeave Plummets 7.1% Amid Acquisition Turbulence and Insider Selloff – What’s Next for CRWV?

Summary
• CoreWeave (CRWV) plunges 7.1% intraday to $94.05, a 9.3% drop from its 52-week high of $187.
• Insider selling of $94M in shares and a volatile acquisition bid for Core Scientific fuel uncertainty.
• Technical indicators show RSI at 28.47 (oversold), MACD histogram at 0.69 (bullish divergence), and Bollinger Bands squeezing near $73.30.

CoreWeave’s sharp intraday decline has ignited market speculation about its $121.77 12-month target and the viability of its $46.06B acquisition of Core Scientific. With insider selling and sector volatility, traders are recalibrating positions ahead of the September 5 options expiration.

Acquisition Uncertainty and Insider Selloff Trigger Sharp Decline
CoreWeave’s 7.1% intraday drop stems from two critical catalysts: a struggling $46.06B acquisition of Core Scientific and a $94M insider selloff. The company’s attempt to consolidate cloud infrastructure dominance has backfired as share price volatility threatens the deal’s $121.77 price floor. Meanwhile, insider selling—despite a 141.72% YTD gain—signals skepticism about the acquisition’s execution risk. This dual pressure has accelerated a 9.3% retreat from the 52-week high, with the stock now trading near its 200-day average (empty) and 30-day support at $90.79.

Bearish Options Play: CRWV20250905C96 and CRWV20250905C97 for Short-Term Volatility
• Technical Indicators:
- RSI: 28.47 (oversold)
- MACD: -7.47 (bearish signal), Histogram: 0.69 (bullish divergence)
- Bollinger Bands: Upper $140.40, Middle $106.85, Lower $73.30 (current price near lower band)
- 30D MA: $109.78 (resistance), 100D MA: $106.17 (neutral)

Trading Setup: CRWV’s 7.1% drop has created a high-conviction short-term bearish setup. Key support at $90.79 and resistance at $97.13 define a volatile range. The 28.47 RSI suggests oversold conditions, but the -7.47 MACD and 0.69 histogram divergence hint at potential continuation of the decline. The 30-day MA at $109.78 remains a critical psychological hurdle.

Top Options:
• CRWV20250905C96
- Type: Call
- Strike: $96
- Expiry: 2025-09-05
- IV: 80.71% (high volatility)
- LVR: 38.49% (moderate leverage)
- Delta: 0.4355 (moderate sensitivity)
- Theta: -0.8006 (rapid time decay)
- Gamma: 0.0494 (high sensitivity to price movement)
- Turnover: $497,632 (high liquidity)
- Payoff at 5% downside (ST = $90.87): $0 (strike above ST)
- Why: High gamma and theta make this contract responsive to further declines, ideal for short-term bearish bets.

• CRWV20250905C97
- Type: Call
- Strike: $97
- Expiry: 2025-09-05
- IV: 80.68% (high volatility)
- LVR: 45.56% (strong leverage)
- Delta: 0.3877 (moderate sensitivity)
- Theta: -0.7462 (rapid time decay)
- Gamma: 0.0481 (high sensitivity to price movement)
- Turnover: $238,534 (high liquidity)
- Payoff at 5% downside (ST = $90.87): $0 (strike above ST)
- Why: Strong leverage ratio and gamma make this contract a top pick for aggressive short-term bearish exposure.

Action: Aggressive bears should consider CRWV20250905C96 into a breakdown below $90.79. For a balanced approach, CRWV20250905C97 offers high leverage with moderate delta for a potential bounce above $97.13.

Backtest CoreWeave Stock Performance

CRWV’s 7.1% Drop: A Buying Opportunity or a Warning Signal?
CoreWeave’s 7.1% intraday plunge reflects a critical inflection point for its $121.77 12-month target. While the RSI at 28.47 suggests oversold conditions, the -7.47 MACD and 0.69 histogram divergence indicate the decline may persist. Traders should monitor the $90.79 support level and the 30-day MA at $109.78. The sector leader Microsoft (MSFT) is down 0.65%, signaling broader tech sector caution. Act now: Short-term bears should target CRWV20250905C96 if $90.79 breaks, while bulls may test the $97.13 resistance with CRWV20250905C97.