Eversource Plunges 7% Intraday: What's Fueling the Selloff?

Summary
• Eversource (ES) trades at $61.85, down 7.04% from its $66.53 previous close
• Intraday range spans $61.54 to $63.79 amid 0.43% turnover
• Sector leader Nextera (NEE) declines 1.33% as utilities face pressure
• Technicals show price near 200D MA at $61.56 with RSI at 50.4

Today’s sharp selloff in Eversource has sent shockwaves through the electric utilities sector. With the stock trading near its 52-week low of $52.28 and below all major moving averages, traders are scrambling to decipher whether this is a short-term correction or a deeper bearish shift. The move coincides with broader sector weakness, though Eversource’s decline far outpaces its peers.

Bearish Breakdown Below Key Technical Levels
Eversource’s 7% intraday drop reflects a critical breakdown below its 200-day moving average ($61.56) and 30-day support zone ($65.37–$65.41). The price now trades near the lower Bollinger Band ($64.74) while the MACD histogram (-0.02) signals bearish momentum. With RSI at 50.4—neutral territory—the market appears to be testing the stock’s ability to hold above its 52-week low. This technical collapse suggests short-term sellers are capitalizing on weakness in utility sector sentiment.

Electric Utilities Sector Under Pressure as NEE Trails Behind
The electric utilities sector is broadly weaker, with sector leader Nextera (NEE) down 1.33%. While Eversource’s 7% drop far outpaces NEE’s decline, the sector’s underperformance highlights broader concerns about regulatory uncertainty and interest rate sensitivity. Utilities typically trade at a premium to the S&P 500, but rising bond yields have pressured dividend-focused stocks like Eversource.

Bearish Options Playbook: Leverage Put Spreads and Gamma-Driven Plays
• 200D MA: $61.56 (below) • RSI: 50.4 (neutral) • MACD: -0.02 (bearish) • Bollinger Bands: 66.73 (upper), 65.73 (middle), 64.74 (lower)

Key levels to watch include the 200D MA at $61.56 and the 52-week low at $52.28. Short-term bearish momentum suggests a test of $61.5574 (200D MA) and $57.22 (200D support). The options chain reveals two high-conviction plays:

• ES20250919P60 (Put): Strike $60, Expiry 9/19, IV 21.17%, Leverage 85.53%, Delta -0.3116, Theta -0.0223, Gamma 0.1015, Turnover 32,213
- L: High leverage for bearish bets
- IV: Mid-range volatility
- D: Moderate delta for directional exposure
- T: Strong time decay
- G: High gamma for price sensitivity
- T: High liquidity for entry/exit
- Payoff at 5% downside ($58.75): $1.25 per contract
- This put offers optimal leverage and liquidity for a bearish trade, with gamma and theta amplifying gains if the selloff accelerates.

• ES20250919C60 (Call): Strike $60, Expiry 9/19, IV 28.78%, Leverage 22.39%, Delta 0.6449, Theta -0.0295, Gamma 0.0783, Turnover 5,001
- L: Moderate leverage for bullish hedges
- IV: Elevated volatility
- D: High delta for directional protection
- T: Strong time decay
- G: Solid gamma for price sensitivity
- T: Reasonable liquidity
- Payoff at 5% downside ($58.75): $0 (out of the money)
- This call provides limited downside protection for long positions, with high delta and gamma to offset potential losses.

If $61.56 breaks, ES20250919P60 offers short-side potential. Aggressive bulls may consider ES20250919C60 into a bounce above $63.79.

Backtest Eversource Stock Performance
The backtest of the S&P 500 (ES) after a -7% intraday plunge shows mixed results. While the 3-day win rate is 52.71%, indicating a higher probability of a positive return in the short term, the longer-term outlook is less favorable, with a 10-day win rate of 50.30% and a 30-day win rate of 48.80%. The returns following the plunge are generally negative, with a maximum return of only 0.01% over 30 days, suggesting that the index tends to recover slowly after significant downturns.

Urgent Action Required: Watch for 61.55 Breakdown and Sector Catalysts
The selloff in Eversource appears unsustainable unless the stock holds above $61.56 (200D MA) and $57.22 (200D support). Immediate focus should be on whether the price can stabilize above the 52-week low of $52.28. Sector leader Nextera’s -1.33% decline suggests broader risks for utilities, particularly with bond yields remaining elevated. Investors should prioritize ES20250919P60 for bearish exposure and monitor the 9/19 expiry for liquidity. Watch for $61.56 breakdown or regulatory reaction.