Ferrari Plummets 4.2% Amid Technical Downtrend: Is the 52-Week Low Next?

Summary
• Ferrari (RACE) trades at $359.46, down 4.23% from its previous close of $375.35
• Intraday range spans $358.85 (low) to $364.16 (high), signaling sharp bearish momentum
• 52-week low of $358.85 now within striking distance as RSI dips to 34.9

Today’s selloff in Ferrari has captured market attention, with the luxury automaker’s shares tumbling into bearish territory. The stock’s collapse aligns with a deteriorating technical backdrop, as short-term indicators flash red. With the 52-week low now in sight and options volatility surging, traders are scrambling to position for a potential breakdown. This analysis deciphers the catalysts, sector dynamics, and actionable options strategies for navigating the unfolding volatility.

Technical Downtrend Intensifies as RACE Slides Toward 52-Week Low
Ferrari’s 4.23% intraday decline is driven by a confluence of bearish technical signals. The stock has pierced below its 30-day moving average ($397.26) and is now trading near its 52-week low of $358.85. A short-term bearish K-line pattern, coupled with an RSI of 34.9 (oversold territory), suggests momentum is firmly on the sell side. The MACD (-7.63) remains below its signal line (-7.75), with a narrowing histogram indicating waning bullish conviction. This technical deterioration has triggered algorithmic selling pressure, amplifying the downward spiral.

Automotive Sector Mixed as GM Defies Downtrend
While Ferrari’s shares crumble, the broader automotive sector shows divergence. General Motors (GM), the sector’s benchmark, is up 1.00% on the day, reflecting resilience in its core EV and manufacturing segments. Nissan’s strategic partnerships and Toyota’s reliability accolades highlight sector-wide innovation, yet Ferrari’s luxury positioning appears uniquely vulnerable. The disconnect underscores Ferrari’s stock-specific challenges, including its elevated dynamic P/E of 33.59, which now faces scrutiny amid the selloff.

Bearish Options Playbook: Leveraging Volatility and Key Levels
• 200-day MA: $453.56 (far above current price)
• RSI: 34.9 (oversold)
• MACD: -7.63 (bearish)
• Bollinger Bands: $366.53 (lower band) vs. $359.46 (current price)
• Support/Resistance: 30D support at $391.37, 200D resistance at $477.81

The technical case for further downside hinges on breaking below $358.85 (52-week low) and testing the lower Bollinger band at $366.53. Two options contracts stand out for bearish exposure:

• RACE20251219P340
- Put option, strike $340, expiring 12/19
- IV: 34.26% (moderate), Leverage: 208.76% (high), Delta: -0.157 (shallow)
- Theta: -0.0489 (slow decay), Gamma: 0.0118 (moderate sensitivity)
- Turnover: $2,300 (liquid)
- Payoff: At 5% downside (ST = $341.48), intrinsic value = $1.48 per share
- This deep-in-the-money put offers high leverage with limited time decay, ideal for capitalizing on a potential 52-week low test.

• RACE20260116P350
- Put option, strike $350, expiring 1/16
- IV: 28.56% (low), Leverage: 42.24% (moderate), Delta: -0.3587 (moderate)
- Theta: -0.0399 (slow decay), Gamma: 0.0113 (moderate sensitivity)
- Turnover: $118,289 (highly liquid)
- Payoff: At 5% downside (ST = $341.48), intrinsic value = $8.52 per share
- This at-the-money put balances liquidity and leverage, offering robust upside if the selloff extends into early 2026.

Trading View: Aggressive bears should prioritize RACE20251219P340 for immediate leverage, while RACE20260116P350 suits those anticipating a prolonged bearish phase. A breakdown below $358.85 would validate the technical case for both.

Backtest Ferrari Stock Performance
The backtest of RACE's performance after an intraday plunge of at least -4% from 2022 to the present shows favorable short-to-medium-term gains. The 3-Day win rate is 55.90%, the 10-Day win rate is 54.37%, and the 30-Day win rate is 57.42%, indicating a higher probability of positive returns in the immediate aftermath of the plunge. The maximum return during the backtest was 4.88% over 30 days, suggesting that while there is volatility, RACE can exhibit strong recovery and growth in the following weeks.

Act Now: Position for a Potential 52-Week Low Breakdown
Ferrari’s technical collapse shows no immediate signs of abating, with key support levels and options volatility aligning for further downside. The 52-week low of $358.85 is now a critical threshold—breaking this could trigger a cascade of stop-loss orders and accelerate the selloff. Traders should monitor the RACE20251219P340 put for short-term bearish exposure and keep a watchful eye on General Motors (GM), which is bucking the trend with a 1.00% intraday gain. Action now: Deploy the RACE20251219P340 put if $358.85 breaks, or scale into the RACE20260116P350 put for a longer-term bearish bet.