CoreWeave Plummets 5.16% as Major Shareholder Unloads Stake—Is the Sell-Off a Buying Opportunity?

Summary
• CoreWeave (CRWV) tumbles 5.16% intraday to $88.095, a sharp reversal from its $90.40 high
• Top shareholder Magnetar Financial offloads $147M in shares, triggering investor panic
• Technicals signal bearish momentum with RSI at 46 and MACD below zero

CoreWeave’s dramatic intraday selloff has sent shockwaves through the AI cloud computing sector. The stock’s 5.16% drop to $88.095—its lowest since March—coincides with a massive $147M stake sale by Magnetar Financial, a 25% owner. With the 52-week range spanning $33.52 to $187, the move raises questions about short-term support and long-term value. Traders are now parsing technicals and options data to gauge whether this is a panic-driven dip or a strategic entry point.

Major Shareholder's Profit-Taking Sparks Sharp Decline
The selloff stems from Magnetar Financial’s aggressive profit-taking, as disclosed in filings showing $91.7M sold on Friday and $55.4M on Monday. This represents 1.5M shares from a 25% stake, though Magnetar still holds 94M shares. The timing—post-IPO lockup expiration—has amplified investor anxiety. Board member Jack Cogen’s 4M-share sale further stoked fears of insider skepticism. While Magnetar previously praised CoreWeave as the 'gold standard for AI infrastructure,' the liquidity event has triggered a self-fulfilling bearish spiral.

Bearish Technicals and High-Leverage Puts Signal Aggressive Shorting Opportunities
• 200-day average: 120.64 (well above current price)
• RSI: 46.03 (oversold territory)
• MACD: -7.47 (negative momentum)
• Bollinger Bands: Price at $85.31 lower band, suggesting potential rebound

With CoreWeave trading near its 52-week low and technical indicators confirming bearish momentum, the options chain offers high-leverage puts for aggressive shorting. Two standout contracts:

• CRWV20250829P88
- Put option with $88 strike, expiring 8/29
- IV: 82.94% (high volatility)
- Leverage: 17.50% (strong directional bias)
- Delta: -0.486 (moderate sensitivity)
- Theta: -0.035 (moderate time decay)
- Gamma: 0.033 (responsive to price swings)
- Turnover: 510,231 (high liquidity)
- Payoff at 5% downside: $4.40 (max profit if price drops to $83.70)
This contract balances leverage and liquidity, ideal for capitalizing on a continuation of the selloff.

• CRWV20250829P85
- Put option with $85 strike, expiring 8/29
- IV: 84.01% (elevated)
- Leverage: 24.37% (high reward potential)
- Delta: -0.387 (moderate directional exposure)
- Theta: -0.072 (accelerated time decay)
- Gamma: 0.031 (responsive to price moves)
- Turnover: 439,851 (strong liquidity)
- Payoff at 5% downside: $8.35 (max profit if price drops to $83.70)
This put offers the highest leverage ratio in the chain, making it a top pick for aggressive short-term bearish bets.

Action Alert: Aggressive bears should prioritize CRWV20250829P88 for its balanced risk/reward profile. If the $85.31 Bollinger Band level holds, the $85 put could offer exponential gains. Watch for a breakdown below $85 to confirm the bearish thesis.

Backtest CoreWeave Stock Performance
The CRWV ETF has historically shown positive performance after experiencing a -5% intraday plunge. The 3-day win rate is 62.16%, the 10-day win rate is 59.46%, and the 30-day win rate is 51.35%, indicating that the ETF tends to rebound in the short term following a significant drop. The maximum return during the backtest period was 45.48%, which occurred on day 39, suggesting that there is potential for substantial gains in the aftermath of a steep intraday decline.

CoreWeave’s Sell-Off May Present Strategic Entry Point—But Sector Leaders Signal Caution
The immediate outlook for CoreWeave hinges on whether the $85.31 lower Bollinger Band holds as a support level. While the technicals and options data favor short-term bearish positioning, the stock’s 52-week range and sector leadership in AI infrastructure suggest long-term resilience. Microsoft (MSFT), the sector’s dominant player, is down 0.94%, signaling broader caution in the space. Traders should monitor Microsoft’s performance as a barometer for sector sentiment. For CoreWeave, key resistance at $90.40 and support at $85.31 will dictate near-term direction. Act now: Short sellers should target the $88 put for a 5% downside scenario, while long-term investors may consider dip-buying if the $85 level holds.