EQT Plunges 7.5% Amid Acquisition Hype: What's Fueling the Selloff?

Summary
• EQT shares nosedive to $54.72, down 7.55% from $59.19
• Massive 1.3% turnover as $7.7M traded
• Acquisition of Adevinta Spain announced but stock tanks
• MACD and Bollinger Bands signal mixed technical signals
Today’s EQT plunge defies the bullish narrative of its high-profile Spanish acquisition. While the company claims the deal will accelerate growth in online classifieds, traders are fleeing the stock as regulatory headwinds and energy sector volatility collide. With the price trading near its 52-week low of $30.02, the market is sending a clear message: the acquisition’s promise may not be enough to offset broader concerns.

Regulatory Uncertainty Overshadows Strategic Acquisition
EQT’s 7.5% intraday selloff stems from a confluence of factors. While the acquisition of Adevinta Spain’s classifieds platforms is a strategic move to expand its digital footprint, the company’s CEO Toby Rice has simultaneously been vocal about regulatory hurdles for U.S. gas infrastructure projects. His recent comments to the Financial Times—warning of China’s AI race and grid reliability issues—have amplified investor anxiety. The stock’s sharp decline suggests market skepticism about EQT’s ability to navigate both regulatory bottlenecks in energy and integration risks in its new digital ventures, despite the acquisition’s long-term growth potential.

Energy Sector Suffers as Zillow Gains
Options Playbook: Hedging Downside with Gamma-Driven Puts
• 200-day MA: $49.11 (well below current price)
• RSI: 53.67 (neutral but bearish bias)
• MACD: 0.538 (bullish) vs. Signal Line: 0.299 (bearish divergence)
• Bollinger Bands: Price at $54.72 near Lower Band ($53.65) suggesting oversold territory
• Kline pattern: Short-term bullish trend conflicting with intraday bearish momentum

With EQT trading near its 52-week low and technical indicators showing mixed signals, the stock is at a critical inflection point. Key support lies at the 200-day MA ($49.11) and the Lower Bollinger Band ($53.65). A break below $53.65 could trigger a test of the $30.02 52-week low. While the acquisition of Adevinta Spain is bullish long-term, near-term risks from regulatory uncertainty and energy sector volatility make a defensive options strategy prudent.

Top Options Contracts:
• EQT20250725P53 (Put Option)
- Strike Price: $53 | Expiry: 2025-07-25
- IV: 57.74% (moderate volatility)
- Delta: -0.2967 (moderate downside sensitivity)
- Theta: -0.0094 (low time decay)
- Gamma: 0.0934 (high sensitivity to price changes)
- Turnover: $30,532 (high liquidity)
- Leverage Ratio: 76.10% (strong potential return)
- Payoff (5% downside): $0.48 per share (max profit if price drops to $51.98)
This put option is ideal for hedging a potential short-term breakdown. The high gamma ensures significant price sensitivity, while the moderate delta balances risk. The 57.74% IV reflects market anticipation of volatility.

• EQT20250725C58 (Call Option)
- Strike Price: $58 | Expiry: 2025-07-25
- IV: 52.11% (moderate volatility)
- Delta: 0.1857 (low upside sensitivity)
- Theta: -0.1567 (high time decay)
- Gamma: 0.0801 (moderate sensitivity)
- Turnover: $118,841 (extremely liquid)
- Leverage Ratio: 166.05% (high potential reward)
- Payoff (5% downside): $0 (out of the money)
This call option is a high-risk, high-reward play. While it offers 166% leverage, the low delta makes it unsuitable for a bearish market. However, if EQT rebounds above $58, the high IV and gamma could unlock substantial gains.

Trading Outlook: Aggressive bulls should consider the EQT20250725P53 put for downside protection. If the stock breaks below $53.65, this option could provide strong returns. For those bullish on the acquisition’s long-term potential, the EQT20250725C58 call is a speculative bet on a rebound above $58, though it carries high theta decay risks.

Backtest Eqt Stock Performance
The 3-day win rate for EQT after an intraday plunge of -8% is 53.12%, the 10-day win rate is 56.32%, and the 30-day win rate is 63.58%. The maximum return during the backtest period was 9.27%, which occurred on day 59 after the plunge.

Act Now: Position for Regulatory Risk or Bounce
EQT’s 7.5% drop highlights the market’s wariness of regulatory and energy sector headwinds. While the Adevinta Spain acquisition is a strategic win, near-term volatility from infrastructure approval delays and grid reliability concerns could keep the stock under pressure. Traders should monitor the $53.65 support level and the 200-day MA at $49.11. For sector contrast, Zillow Group (ZG) is up 0.4% today, illustrating divergent market sentiment. If EQT breaks below $53.65, the EQT20250725P53 put offers a high-gamma hedge. Conversely, a rebound above $58 could validate the acquisition’s upside. Watch for regulatory updates and Q1 2026 acquisition closure timelines—these will be critical catalysts.