Credo Technology Plunges 10.48% on $590M Surge in Volume Ranks 169th in Market Activity

Credo Technology (CRDO) fell 10.48% on August 19, with a trading volume of $590 million, up 67.14% from the previous day, ranking it 169th in market activity. The decline follows significant insider sales by CEO William Brennan and CFO Daniel Fleming, totaling $5.33 million over three months, and heightened options trading activity. Bearish and bullish options sentiment remains balanced at 41% each, with notable call and put trades at $65 and $175 strike prices.

Despite a Q2 earnings beat and 179.6% revenue growth, the stock trades near its 52-week low of $24.08, with a dynamic P/E ratio of 351.44. Analysts from Susquehanna and Mizuho maintain price targets of $115–$135, but the recent surge in trading volume suggests short-term profit-taking and hedging. Technical indicators show the stock above its 30-day moving average ($107.45) but well below its 200-day average ($66.94), signaling potential volatility.

Options activity highlights two key contracts: the CRDO20250919P110 put, with high implied volatility (98.26%) and gamma sensitivity, and the CRDO20250919C115 call, offering speculative upside if the stock rebounds above $115. Institutional investors, including JPMorgan Chase and AllianceBernstein, have increased holdings, reflecting strategic positioning amid market uncertainty.

Historical backtesting of CRDO’s performance after a -10% intraday drop shows a 61.14% positive return probability over 30 days, with a maximum recovery of 22.94% observed on day 59. This suggests resilience in the stock’s long-term trajectory despite immediate volatility.