Eni Spa (E) Plunges 3% Amid Mixed Sector Signals: What’s Fueling the Selloff?

Summary
• Eni Spa (E) trades at $36.73, down 2.96% intraday, with a 52-week high of $39.41 and low of $24.65.
• UBS upgraded ENI to Buy with a €18.00 target, but insider sentiment remains negative due to increased selling.
• Sector leader Exxon Mobil (XOM) declines 1.29%, while Eni’s 200-day MA at $33.66 suggests long-term support.

Eni’s sharp intraday drop has sparked urgency among traders, with the stock trading near its 200-day moving average. The move follows a mixed earnings report, insider selling, and a volatile options chain. As the energy sector grapples with geopolitical and macroeconomic headwinds, investors are left deciphering whether this is a short-term correction or a deeper bearish shift.

Earnings Disappointment and Insider Selling Spark Flight to Safety
Eni’s 3% intraday decline stems from a confluence of factors: a 49% year-over-year drop in net profit to €543 million, increased insider selling by 59 corporate stakeholders, and a lack of clarity on its renewable energy transition. Despite a UBS Buy rating and a €18.00 price target, the stock’s technicals—trading near the lower Bollinger Band at $36.35—suggest short-term bearish momentum. The recent partnership with LG Chem for a biorefinery in South Korea has yet to translate into market confidence, while the company’s 14.1x P/E ratio lags behind sector peers.

Energy Sector Volatility: Eni Trails Behind XOM Amid Macroeconomic Uncertainty
The energy sector remains fragmented, with Exxon Mobil (XOM) down 1.29% and Eni underperforming despite a recent UBS upgrade. While XOM’s 100-day MA at $118.50 offers some stability, Eni’s 100-day MA at $36.29 suggests a weaker near-term outlook. The sector’s exposure to oil prices—currently at $60.28 per barrel—adds complexity, as OPEC+’s decision to maintain output through Q1 2026 has failed to buoy sentiment. Eni’s 52-week low of $24.65 underscores its vulnerability to macroeconomic shifts.

Options and Technicals: Navigating Eni’s Volatile Landscape
• MACD: 0.329 (above signal line 0.236), RSI: 52.56 (neutral), Bollinger Bands: $36.35 (lower), $37.67 (middle).
• 200-day MA: $33.66 (below current price), 30-day MA: $37.58 (near-term resistance).

Eni’s technicals suggest a short-term bearish trend but a long-term bullish setup. Key levels to watch include the 200-day MA at $33.66 and the 30-day MA at $37.58. The stock’s 1.62% turnover rate and 0.016% turnover rate indicate moderate liquidity, making options a viable tool for directional bets.

Top Options Picks:
• E20260116C37.5 (Call, $37.5 strike, 1/16/2026):
- IV: 34.69% (moderate), Leverage Ratio: 73.37%, Delta: 0.3597 (moderate), Theta: -0.0265 (low decay), Gamma: 0.1774 (high sensitivity).
- Payoff: If Eni drops 5% to $34.92, the call’s intrinsic value would be $0.00. However, its high gamma and leverage make it ideal for a rebound above $37.50.
• E20260220C37.5 (Call, $37.5 strike, 2/20/2026):
- IV: 23.77% (low), Leverage Ratio: 43.16%, Delta: 0.4051 (moderate), Theta: -0.0096 (low decay), Gamma: 0.1260 (moderate).
- Payoff: A 5% downside to $34.92 would yield $0.00 intrinsic value, but its longer expiration and moderate gamma position it for a mid-term bounce.

Trading Insight: Aggressive bulls may consider E20260220C37.5 into a break above $37.50, while cautious bears should monitor the 200-day MA at $33.66 for a potential breakdown.

Backtest Eni Spa Stock Performance
The backtest of an strategy that involves an intraday plunge of -3% from 2022 to the present shows poor performance, aligning with the market's 47.26% return over the same period, resulting in a 47.26% underperformance. The strategy yielded no returns and exhibited a maximum drawdown, indicating significant risk management challenges.

Eni at a Crossroads: Short-Term Bearish, Long-Term Resilient
Eni’s 3% intraday drop reflects near-term earnings and sentiment headwinds, but its 52-week range and 14.1x P/E ratio suggest undervaluation. The stock’s proximity to the 200-day MA at $33.66 and the sector leader Exxon Mobil’s 1.29% decline highlight the need for caution. Investors should watch for a break below $36.35 (lower Bollinger Band) or a rebound above $37.50 (30-day MA). For now, the E20260220C37.5 call offers a balanced play on a potential mid-term recovery.