Coursera Plunges 9% Amid Volatile Intraday Selloff – What’s Fueling the Sudden Drop?

Summary
• Coursera (COUR) trades at $10.875, down 8.99% from its $11.95 previous close
• Intraday range spans $10.755 to $11.83, signaling sharp bearish momentum
• Sector leader Udemy (UDMY) declines 1.82%, trailing Coursera’s selloff

Today’s dramatic 9% drop in Coursera has sent shockwaves through the education tech sector, with the stock breaching key technical levels and triggering heavy options activity. The move defies a lack of company-specific news, pointing to broader market sentiment and technical triggers as the primary drivers. With the stock now trading near its 52-week low of $5.76, traders are scrambling to decipher whether this is a short-term correction or a deeper bearish shift.

Technical Breakdown and Options Volatility Fuel Sharp Decline
Coursera’s 9% intraday drop is driven by a confluence of technical triggers and options-driven selling pressure. The stock has pierced below its 30-day moving average of $11.73 and the Bollinger Band lower bound of $10.83, triggering algorithmic sell-offs and stop-loss orders. The MACD histogram’s negative divergence (-0.039) and RSI’s retreat to 59.36—below its 60 threshold—signal weakening bullish momentum. Meanwhile, the options chain reveals heightened bearish positioning, with the September 19 $10 put (COUR20250919P10) surging 120% in price and the October 17 $11 put (COUR20251017P11) seeing $10,915 turnover, reflecting aggressive short-term bearish bets.

Education Services Sector Under Pressure as Udemy Trails Coursera’s Slide
The Education Services sector is broadly underperforming, with Udemy (UDMY) down 1.82% despite its more stable fundamentals. Coursera’s sharper decline reflects its weaker technical positioning and higher short-term volatility. While Udemy’s 52-week range (14.85–6.75) is broader, Coursera’s proximity to its 52-week low ($5.76) has amplified panic selling. The sector’s underperformance suggests broader macroeconomic concerns—such as reduced corporate training budgets—are weighing on education tech stocks, though Coursera’s technical breakdown is more acute.

Bearish Playbook: Leveraged ETFs and High-Gamma Options for Short-Term Bets
• 200-day average: $8.72 (well below current price)
• RSI: 59.36 (neutral to bearish)
• Bollinger Bands: $12.18 (upper), $10.83 (lower) – price near lower band
• MACD: 0.147 (bullish), but histogram -0.039 (bearish divergence)

Coursera’s technicals suggest a short-term bearish bias, with key support at $10.83 (Bollinger Band) and resistance at $11.12 (30-day support). The stock’s 8.99% drop has created high-conviction options opportunities. Two top picks from the options chain are:

• COUR20251017P11 (Put):
- Strike: $11, Expiry: 2025-10-17
- IV: 46.85% (moderate), Leverage: 15.53%, Delta: -0.49 (sensitive to price moves), Theta: -0.00215 (slow decay), Gamma: 0.2427 (high sensitivity)
- This put option offers strong leverage and high gamma, ideal for capitalizing on a potential 5% downside to $10.33. Payoff: max(0, $11 - $10.33) = $0.67/share.

• COUR20251121C12 (Call):
- Strike: $12, Expiry: 2025-11-21
- IV: 64.34% (elevated), Leverage: 12.79%, Delta: 0.43 (moderate), Theta: -0.01057 (moderate decay), Gamma: 0.1257 (moderate)
- This call provides upside potential if the stock rebounds above $12. Payoff in a 5% downside scenario is zero, but its high IV and moderate delta make it a speculative long play.

Aggressive bears should prioritize COUR20251017P11 for its high gamma and leverage. If the stock breaks below $10.83, this contract could amplify returns. For a bullish bounce, COUR20251121C12 offers a high-IV long bet, though its theta decay requires a swift reversal.

Backtest Coursera Stock Performance
The event-study backtest has been completed.Below is an interactive module where you can explore the performance of Coursera (COUR.N) after every intraday plunge of 9 % or more since 1 Jan 2022. Please scroll through the module for visual statistics such as cumulative excess return, win-rate curve, optimal holding period, etc.Key notes (auto-determined parameters):• Event definition: any trading day whose intraday low fell ≥ 9 % below the previous close. • Data window: from 2022-01-01 to 2025-09-10 (aligned with “from 2022 to now”). • Price type: close, 30-day post-event evaluation horizon. Let me know if you’d like deeper cuts (different horizons, holding rules, etc.) or further interpretation of the results.

Act Now: Coursera’s 10.83 Support is Critical – Short-Term Bets Take Priority
Coursera’s 9% drop has created a high-risk, high-reward environment. The stock’s proximity to its 52-week low and breakdown below key moving averages suggest further downside is likely unless it rebounds above $11.12. Sector leader Udemy’s 1.82% decline indicates broader sector weakness, but Coursera’s technicals are more fragile. Traders should prioritize the COUR20251017P11 put for a bearish play if the $10.83 support fails. Watch for a breakdown below $10.755 or a reversal above $11.83 to dictate next steps. With volatility elevated, short-term options strategies are optimal for navigating this volatile phase.