FATBP Plunges 32.7% in Volatile Session: What’s Fueling the Selloff?

Summary
• Fat Brands Pref B (FATBP) slumps to $1.07, a 32.7% drop from its previous close of $1.59
• Intraday range spans $0.86 to $1.1288, reflecting extreme volatility
• Technical indicators signal bearish momentum with RSI at 23.19 and MACD below signal line

Today’s session has seen Fat Brands Pref B (FATBP) endure one of its most dramatic declines in recent history, with the stock collapsing to $1.07—a 32.7% intraday drop. The move has drawn attention to the stock’s technical breakdown and lack of catalysts, as the price tests its 52-week low of $0.86. With no clear news driving the selloff and bearish indicators flashing red, traders are left scrambling to decipher the next move.

Bearish Momentum Unleashed by Technical Weakness
The sharp selloff in FATBP is driven by a confluence of bearish technical signals and a lack of positive catalysts. The stock’s RSI has plummeted to 23.19, signaling oversold conditions, while the MACD (-0.114) remains well below its signal line (-0.0577), confirming downward momentum. Bollinger Bands show the price is trading near the lower band at $1.849, amplifying the risk of further declines. With no material news from the company and a 52-week high of $10.30 now a distant memory, the sell-off appears to be a reaction to deteriorating technical structure and weak market sentiment.

Navigating the Bearish Landscape: ETFs and Technicals in Focus
• 200-day average: $4.47 (far above current price)
• RSI: 23.19 (oversold)
• MACD: -0.114 (bearish divergence)
• Bollinger Bands: Lower band at $1.849 (critical support)

The technical landscape for FATBP is overwhelmingly bearish, with all major indicators pointing to continued downward pressure. The stock is trading at a 90% discount to its 200-day moving average and is now flirting with its 52-week low. Traders should monitor the $1.00 level as a potential short-term floor, with a breakdown below $0.86 likely to trigger further panic. However, the absence of leveraged ETFs and an empty options chain limits hedging opportunities, forcing investors to rely on strict stop-loss discipline. Given the lack of liquidity in options, a cash-secured short position or a tight stop-limit order may be the only viable strategies for risk-managed participation.

Backtest Fat Brands Pref B Stock Performance
Below is an interactive report of the back-test you requested. It contains all key inputs and results; click the card to explore individual trades, equity curve, and statistics.Key take-aways (not duplicated in the module):1. Total return: –56.2 % (2022-01-01 → 2025-11-24), annualised –19.1 %.2. Risk: 61.1 % max draw-down; Sharpe ratio –0.87.3. Average trade lost 4 %; wins averaged +10.8 %, losses –9.7 %.4. Despite occasional 20 % rebounds, most signals continued to drift lower, eroding capital.Assumptions & Notes:• Intraday data sufficient to pinpoint exact –33 % moves are not publicly available; closing below the rolling 30-day low was used as a pragmatic proxy for an extreme intraday plunge. • Default risk-controls (10 % stop-loss, 20 % take-profit, 20-day max hold) were applied to cap tail risk and standardise holding periods. • The strategy’s poor performance suggests that large single-day collapses in this thinly traded preferred stock do not reliably precede short-term mean reversion.Feel free to inspect the interactive dashboard for deeper drill-downs or let me know if you'd like to adjust the entry filter, risk limits, or test a different security.

Act Now: Position for a Potential Breakdown Below $0.86
The selloff in FATBP shows no signs of abating, with technical indicators and price action painting a bleak picture. Immediate focus should be on the $0.86 level, which could trigger a cascade of stop-loss orders and further volatility. While the sector leader McDonald’s (MCD) has also dipped (-0.66%), FATBP’s standalone weakness suggests a more isolated risk. Investors should prepare for a potential breakdown below $0.86, which could open the door to a re-rating of the stock’s fundamentals. For now, the priority is to lock in protective measures and watch for a catalyst—positive or negative—that could shift the narrative. If the stock fails to hold $1.00, the next target may be the 52-week low itself.