DoorDash Plummets 2.23%: What’s Fueling the Selloff?

Summary
• DoorDash (DASH) trades at $222.855, down 2.23% intraday
• Intraday range spans $222.02 to $229.91
• Turnover hits 1.99M shares, 0.57% of float
• Recent news highlights partnerships with Old Navy and 1-800-FLOWERS.COM

DoorDash’s sharp intraday decline has sparked urgency among traders, with the stock trading below its 52-week high of $285.50. The move follows a flurry of partnership announcements and a Georgia pilot for portable benefits, yet technicals and options data suggest growing bearish sentiment. With RSI near overbought levels and a leveraged ETF (DASX) down 4.69%, the market is pricing in volatility ahead.

Regulatory Uncertainty and Profit-Taking Weigh on Momentum
DoorDash’s selloff reflects a confluence of factors: regulatory scrutiny over gig worker benefits, profit-taking after a 32% YTD rally, and macroeconomic headwinds. The Georgia pilot for portable benefits, while a policy milestone, has yet to translate into clear earnings catalysts. Meanwhile, the stock’s 99.8x dynamic P/E ratio—well above its 52-week low of $155.40—has drawn profit-takers. The intraday low of $222.02, just below the 200-day MA of $224.77, signals short-term vulnerability.

Consumer Cyclical Sector Mixed as DoorDash Dips Amid CART Gains
The broader Consumer Cyclical sector, led by Maplebear (CART) with a 0.88% intraday gain, remains resilient. DoorDash’s decline contrasts with CART’s modest strength, suggesting sector-wide divergence. While DoorDash’s delivery model faces regulatory and margin pressures, CART’s logistics-focused peers are benefiting from holiday seasonality and infrastructure investments.

Options and ETF Plays for a Volatile Finish
• 200-day MA: $224.77 (below current price)
• RSI: 79.27 (overbought)
• MACD: 1.12 (bullish), Signal Line: -2.43 (bearish)
• Bollinger Bands: $181.93–$242.43 (wide range)
• DASX ETF: -4.69% (leveraged bearish)

DoorDash’s technicals point to a critical juncture. The RSI’s overbought reading and MACD’s bearish crossover suggest a correction is likely. The Tradr 2X Long DASH Daily ETF (DASX) has amplified the selloff, down 4.69%, signaling leveraged bearishness. Key levels to watch: 222.5 (support) and 227.5 (resistance).

Top Options Picks:
• DASH20251226C225
- Type: Call
- Strike: $225
- Expiry: 2025-12-26
- IV: 36.58% (moderate)
- Delta: 0.44 (balanced)
- Theta: -0.655 (high time decay)
- Gamma: 0.0293 (sensitive to price swings)
- Turnover: 66,723 (liquid)
- Why: This call offers a 51.95% leverage ratio with moderate delta, ideal for a bounce above $225. A 5% downside scenario (to $211.71) would yield a $13.79 payoff, balancing risk and reward.
• DASH20251226C235
- Type: Call
- Strike: $235
- Expiry: 2025-12-26
- IV: 36.60% (moderate)
- Delta: 0.19 (aggressive)
- Theta: -0.357 (lower time decay)
- Gamma: 0.0204 (moderate sensitivity)
- Turnover: 218,772 (highly liquid)
- Why: This call’s 158.81% leverage ratio suits aggressive bulls. A 5% downside (to $211.71) would result in a $23.29 payoff, though delta’s low makes it suitable for a sharp rebound.
Action: Aggressive bulls may consider DASH20251226C225 into a bounce above $225, while DASH20251226C235 offers high leverage for a breakout above $235.

Backtest Doordash Stock Performance
The backtest of DASH's performance after an intraday plunge of -2% from 2022 to the present shows favorable results. The 3-Day win rate is 61.04%, the 10-Day win rate is 61.04%, and the 30-Day win rate is 70.28%. Additionally, the maximum return during the backtest period was 12.57%, with a maximum return day at 59.

DoorDash at Crossroads: Watch 222.5 Support and DASX’s Direction
DoorDash’s intraday selloff has created a pivotal moment for traders. The stock’s proximity to its 200-day MA and overbought RSI suggest a near-term correction is probable. However, the leveraged ETF DASX’s -4.69% decline underscores bearish sentiment. Investors should monitor the 222.5 support level and DASX’s trajectory—its 0.87% gain in the sector could signal a reversal. For now, the Tradr 2X Long DASH Daily ETF (DASX) remains a critical barometer. If DASX breaks below its 30-day MA, it could accelerate the selloff. Aggressive bulls may consider DASH20251226C225 into a bounce above $225, while DASH20251226C235 offers high leverage for a breakout above $235.