Figma (FIG) Plunges 6.87%: What's Fueling the Sudden Sell-Off?

Summary
• Figma’s stock (FIG) slumps to $65.45, down 6.87% from its 2025-09-02 open of $68.96
• Intraday range spans $64.55 to $68.96, with turnover surging to 7.08 million shares
• Bollinger Bands signal extreme compression near the 52-week low of $64.55

Figma’s (FIG) sharp intraday decline has ignited urgency among traders, with the stock trading 6.87% below its open. The move coincides with heightened volatility in the Software—Application sector, as Adobe (ADBE) also declines 3.42%. With the price hovering near its 52-week low and options activity surging, the sell-off reflects a mix of technical exhaustion and sector-wide jitters.

Technical Exhaustion and Short-Term Volatility Trigger Sell-Off
The abrupt 6.87% drop in Figma’s (FIG) stock price is driven by a confluence of technical exhaustion and short-term volatility. The stock has been trading within a narrow range near its 52-week low of $64.55, with RSI at 37.6 (oversold territory) and MACD (-9.16) crossing below its signal line (-9.50). This suggests a breakdown in momentum, exacerbated by heavy put option activity. The Bollinger Bands (Upper: $90.08, Lower: $64.27) indicate the price is near the lower boundary, triggering panic selling as traders anticipate a potential breakdown below critical support.

Software—Application Sector Volatility: Adobe Leads Decline
The Software—Application sector is under pressure, with Adobe (ADBE) down 3.42% as of 2025-09-02. Figma’s (FIG) 6.87% decline aligns with broader sector weakness, reflecting investor caution ahead of earnings season. While Adobe’s drop is attributed to AI-driven competition, Figma’s sell-off is more technical, driven by overbought exhaustion and short-term volatility. The sector’s 2025-09-02 average turnover rate of 14.5% underscores heightened trading activity, with Figma’s 14.5% turnover rate mirroring sector-wide nervousness.

Bearish Setup: Put Options and Short-Term Bets
• RSI: 37.596 (oversold)
• MACD: -9.163 (bearish crossover)
• Bollinger Bands: $64.27 (lower) vs. $65.45 (current price)
• 52W Range: 64.55–142.92 (current price near 45% retracement)

The technical setup favors short-term bearish bets, with key support at $64.27 and resistance at $68.96. Put options with strike prices near $64–$65 offer high leverage and liquidity. Two top options from the chain:

• FIG20250912P64 (Put, $64 strike, 2025-09-12 expiry):
- IV: 100.18% (high volatility)
- Leverage: 18.29% (strong directional bias)
- Delta: -0.398 (moderate sensitivity)
- Theta: -0.086 (moderate time decay)
- Gamma: 0.0337 (responsive to price swings)
- Turnover: 161,766 (high liquidity)
- Payoff at 5% downside (ST = $62.18): $1.82 per contract
- Why it stands out: High IV and leverage make it ideal for a sharp decline, with liquidity ensuring quick entry/exit.

• FIG20250912P65 (Put, $65 strike, 2025-09-12 expiry):
- IV: 100.54% (high volatility)
- Leverage: 16.06% (strong directional bias)
- Delta: -0.433 (moderate sensitivity)
- Theta: -0.080 (moderate time decay)
- Gamma: 0.0342 (responsive to price swings)
- Turnover: 69,765 (high liquidity)
- Payoff at 5% downside (ST = $62.18): $2.82 per contract
- Why it stands out: Slightly higher strike price offers more upside in a bearish scenario, with comparable liquidity and volatility to the $64 put.

Trading Hook: Aggressive bears should target FIG20250912P64 if the price breaks below $64.27, while FIG20250912P65 offers a safer entry if the stock consolidates near $65.

Backtest Figma Stock Performance

Figma’s Critical Support Test: Immediate Buy/Short Setup
Figma’s (FIG) 6.87% intraday drop has created a high-probability short-term trading opportunity, with technical indicators and options activity aligning for a bearish bias. The key level to watch is $64.27 (lower Bollinger Band), where a breakdown would validate the sell-off and trigger further declines. Adobe’s (ADBE) 3.42% drop also highlights sector-wide jitters, reinforcing the case for short-term bearish bets. Traders should prioritize FIG20250912P64 and FIG20250912P65 for leveraged exposure, while monitoring the 52-week low of $64.55 as a critical psychological barrier. Action Insight: Short sellers should target a breakdown below $64.27, with a stop-loss above $68.96 to manage risk.