Futu Holdings Plunges 2.76% as $320M Volume Ranks 387th Amid Bearish Options Surge

Futu Holdings (FUTU) closed at $155.05 on July 30, 2025, declining 2.76% with a trading volume of $320 million, ranking 387th in market liquidity. The stock traded below both its 30-day and 200-day moving averages at $121.83 and $108.68, respectively, indicating bearish technical pressure. Put options activity intensified, with the FUTU20250808P147 contract accounting for 2,058 contracts traded. This contract’s 48.42% implied volatility and 77.08% leverage ratio reflect aggressive short-term bearish positioning, supported by a put/call ratio of 2.5:1.

Market participants appeared to prioritize defensive strategies, as evidenced by the contract’s -0.248 delta and 0.0243 gamma, which suggest moderate directional exposure and heightened sensitivity to price swings. The stock’s proximity to its 52-week low of $51.80 further amplified caution. Historical backtesting of FUTU’s performance following a 5% intraday decline showed a 51.94% win rate and 0.99% average return within three days, rising to 56.45% and 7.64% over 30 days. Maximum returns reached 14.03% by day 59 post-dip, suggesting a favorable risk-reward profile for strategic options plays.

A volume-driven strategy involving the top 500 stocks by daily trading volume and one-day holding generated a 166.71% return from 2022 to the present, outperforming the benchmark by 137.53%. This approach achieved a 31.89% compound annual growth rate with a Sharpe ratio of 1.14 and zero maximum drawdown, highlighting strong risk-adjusted performance and capital preservation. The results underscore the potential of liquidity-focused strategies in capturing short-term market sentiment while managing exposure through optimized contract selection.