Figma Suffers 6.87% Plunge Amid Turbulent Tech Market, Volatility Boils Over

Summary
• FIG’s intraday low hits 24.85, a drop of nearly 6.87% from its open of 27.06.
• Leverage Shares 2X Long FIG Daily ETF (FIGG) sees a staggering -13.46% fall, amplifying short-term bearish sentiment.
• MACD and RSI indicators signal a sharp shift in momentum, with RSI at 36.05 and MACD histogram at -0.1349.
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Figma’s (FIG) stock is in freefall as of 6:34 PM on March 18, 2026, with the design software unicorn plummeting nearly 7% in a single day. The sharp decline comes amid a broader tech sector selloff, with Microsoft (MSFT) also down 1.64%. Bollinger Bands and MACD confirm a bearish reversal pattern, while the options chain sees heavy put activity at strike prices around 25. The immediate question for traders and investors is whether this move reflects a broader sector-wide retreat or a Figma-specific correction.

Bearish Breakdown Amid AI Productivity Uncertainty
The sharp drop in Figma’s stock comes as concerns mount over AI-driven office productivity tools disrupting traditional software ecosystems. Recent news highlights the potential for generative AI and AI agents to redefine the $58 billion office software market, with new entrants challenging Microsoft’s dominance. Figma, a leader in collaborative design, faces uncertainty as the industry shifts toward AI-first platforms. The bearish Kline pattern, reinforced by a MACD crossover below the signal line and a RSI in oversold territory, signals a loss of investor confidence. Put options at the 25 strike price show significant volume and implied volatility, suggesting short-term bearish expectations.

Application Software Sector Falters with Figma at the Forefront
The Application Software sector is under pressure, with Figma’s 6.87% drop mirroring broader market concerns about AI disruption. Microsoft, the sector leader, is also down 1.64%, reflecting the widespread anxiety. Figma’s sharp pullback is sharper than Microsoft’s, indicating that investors are recalibrating expectations for younger, AI-centric players. The sector’s exposure to evolving enterprise workflows and AI agent adoption is causing volatility, as seen in the recent news about AI redefining productivity. Figma’s fall reflects a sector-wide reassessment of long-term growth narratives.

Bearish Playbook: Leverage Puts and ETF Exposure for Risk Mitigation
• Bollinger Bands: Upper: 32.29, Middle: 28.09, Lower: 23.89 (Price at 25.565 suggests a key support at 23.89)
• MACD: -0.0646 (Signal Line: 0.0704, Histogram: -0.1349)
• RSI: 36.06 (Oversold territory)
• 30D Moving Average: 26.21 (current price below SMA)
• Put/Calls Ratio: 3.1:1 at 25–26 strikes (bearish bias)
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Figma’s technical indicators confirm a bearish reversal, with price testing the lower Bollinger Band and RSI at oversold levels. The 30-day MA sits above current price, indicating a downward correction. The ETF Leverage Shares 2X Long FIG Daily ETF (FIGG) is down -13.46% and may continue to underperform if volatility remains elevated. Short-term traders should focus on put options for directional bearish exposure.

Two top options stand out:
• FIG20260327P25
- Type: Put
- Strike Price: 25.00
- Expiration Date: 2026-03-27
- Implied Volatility (IV): 68.50% (high)
- LVR (Leverage Ratio): 29.76% (moderate)
- Delta: -0.3926 (moderate bearish exposure)
- Theta: -0.00996 (slow time decay)
- Gamma: 0.1325 (high sensitivity to price movement)
- Turnover: 60,186 (high)
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IV (68.50%) is elevated, suggesting volatility remains priced in; LVR (29.76%) implies significant upside if the stock continues to fall; Delta (-0.3926) provides moderate bearish exposure without overexposure to gamma swings. Under a 5% downside scenario (ST = 24.30), the payoff is max(0, 25 - 24.30) = $0.70. Given high gamma and liquidity, this put is well-suited for short-term bearish traders.

• FIG20260327P25.5
- Type: Put
- Strike Price: 25.50
- Expiration Date: 2026-03-27
- Implied Volatility (IV): 96.13% (very high)
- LVR (Leverage Ratio): 16.40% (moderate)
- Delta: -0.4566 (moderate bearish exposure)
- Theta: -0.0251 (moderate time decay)
- Gamma: 0.0974 (moderate sensitivity)
- Turnover: 30,537 (high)
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IV (96.13%) suggests deep volatility expectations, but Delta (-0.4566) and Gamma (0.0974) provide balanced bearish exposure. LVR (16.40%) is moderate, meaning upside is capped. Under a 5% downside (ST = 24.30), the payoff is max(0, 25.5 - 24.30) = $1.20. The high IV and liquidity make this an ideal aggressive bearish pick for near-term traders.

Takeaway: If FIG breaks below 24.85, the P25 and P25.5 contracts offer the best bearish exposure. Aggressive shorts should focus on the P25.5 for higher upside per dollar of risk. Conservative traders may use the P25 as a hedge into support tests.

Backtest Figma Stock Performance
The backtest of FIG's performance after a -7% intraday plunge from 2022 to the present reveals a mixed outlook. While the stock experienced a maximum return of -0.71% over a 30-day period, the overall trend was negative, with returns of -2.71% over 3 days, -7.12% over 10 days, and -14.30% over 30 days. The win rates also declined with increasing time horizons, indicating a higher probability of losses following the intraday plunge.

Bearish Breakdown Confirmed: Position for Short-Term Volatility
Figma’s sharp intraday decline confirms a bearish reversal, supported by key technical indicators and options volume. The broader Application Software sector is under pressure, with Microsoft also down, signaling a sector-wide reassessment. With RSI in oversold territory and the 25 strike showing strong put volume, the near-term outlook remains bearish. Traders should watch for a break below 24.85 and consider the P25 and P25.5 options for directional bearish exposure. Microsoft (MSFT), the sector leader, is down -1.64%, reinforcing the cautionary tone. Aggressive traders should position for short-side exposure into the March 27 expiration.