Curtiss-Wright Plummets 7.9% Amid Earnings Optimism: What’s Fueling the Selloff?

Summary
• Curtiss-Wright (CW) plunges 7.9% to $468.99, erasing $40.33 from its value in under 2 hours of trading.
• Q2 2025 earnings report highlights 12% revenue growth and 20% operating income surge, yet shares hit intraday low of $466.03.
• Options chain shows 470C and 480C contracts trading at 65% and 78% price declines, signaling bearish sentiment.

Curtiss-Wright’s stock is in freefall despite a robust earnings report, with technical indicators and options data pointing to a short-term bearish shift. The 52-week high of $517.09 now feels distant as the stock tests critical support levels. Investors are left to decipher whether the selloff reflects skepticism about the company’s guidance or broader sector volatility.

Earnings Optimism vs. Market Skepticism
Curtiss-Wright’s Q2 2025 earnings report, filed via an 8-K, revealed a 12% revenue increase and 20% operating income growth, with full-year guidance raised to $12.70–$13.00 per share. However, the market’s immediate reaction suggests skepticism about the sustainability of these gains. The 8-K filing’s ‘furnished’ status—excluding it from SEC liability—created uncertainty, as investors await concrete data during the 10:00 ET earnings call. Meanwhile, the stock’s 7.9% drop aligns with the 466.24 Bollinger Band lower bound, indicating a technical breakdown. Options data reinforces this: the 470C and 480C contracts show 65% and 78% price declines, reflecting aggressive short-term bearish positioning.

Aerospace & Defense Sector Mixed Amid Geopolitical Volatility
The broader Aerospace & Defense sector remains fragmented, with Lockheed Martin (LMT) down 0.99% despite Curtiss-Wright’s earnings. Recent sector news highlights geopolitical tensions—Spain’s pivot to European defense platforms and Russia’s intensified drone campaigns—creating a backdrop of mixed signals. While Curtiss-Wright’s commercial nuclear growth prospects are strong, sector-wide uncertainty from U.S.-China trade dynamics and European defense realignments may be amplifying volatility.

Bearish Playbook: Leveraged Options and Technical Breakdowns
• 200-day average: 381.52 (far below) • RSI: 67.84 (overbought) • MACD: 9.16 (bullish divergence) • Bollinger Bands: 466.24 (lower) • Support/Resistance: 479.41–480.18 (30D) • 200D: 347.15–351.72

The technical setup suggests a short-term bearish bias, with the 466.24 level acting as a critical support. The 470C and 480C options stand out:

• CW20250815C470: Call option with 33.66% leverage, 44.53% IV, and 53.49% delta. High liquidity (4,490 turnover) and moderate gamma (0.012061) make it ideal for a 5% downside scenario. Projected payoff: $13.01 (max(0, 453.16 - 470)).
• CW20250815C480: Call option with 94.25% leverage, 28.54% IV, and 35.74% delta. High turnover (12,910) and strong theta (-1.17) suggest time decay favors short-term bearish bets. Projected payoff: $11.59 (max(0, 453.16 - 480)).

Aggressive bears should target the 470C into a breakdown below $479.41. If $466.24 holds, the 480C offers leveraged exposure to a potential rebound. The 3-day win rate for CW after a -6% plunge is 57.57%, suggesting a rebound is plausible but uncertain.

Backtest Curtiss-Wright Stock Performance
The backtest of CoreWave (CW) ETF after an intraday plunge of -8% shows favorable performance metrics. The 3-Day win rate is 57.42%, the 10-Day win rate is 64.55%, and the 30-Day win rate is 69.75%. This indicates that CW tends to rebound positively in the short term following a significant intraday decline.

Act Now: Position for Earnings Call Volatility
The selloff reflects a tug-of-war between earnings optimism and market skepticism. With the 466.24 support level in play and the 8:15 ET earnings call looming, investors must decide whether to defend the 52-week high or capitalize on the breakdown. Sector leader Lockheed Martin (LMT)’s -0.99% decline adds caution. Watch for a close below $466.24—confirmation of a bearish reversal—or a rebound above $480.18 to retest the 52-week high. For now, the 470C and 480C options offer high-leverage, high-liquidity plays on the short-term volatility.