Futu Holdings Slides 4.57% as Put Options Surge Amid 293rd-Ranked Trading Volume

Futu Holdings (FUTU) closed at $155.05 on July 29, 2025, declining 4.57% from its opening price. The stock recorded a trading volume of 1.91 million shares, a 1.77% turnover rate, and ranked 293rd in terms of trading activity. Despite a brief intraday low of $154.36, the session saw heavy put option trading, particularly in the FUTU20250808P147 contract, which accounted for 2,058 contracts traded. Technical indicators suggest bearish momentum, with the stock trading below both 30-day and 200-day moving averages at $121.83 and $108.68, respectively.

Options market activity intensified as traders positioned for further downside. The FUTU20250808P147 put option, with a $147 strike price and August 8 expiration, dominated volume with 2,058 contracts traded. Its 48.42% implied volatility and 77.08% leverage ratio highlight aggressive bearish sentiment. The contract’s -0.248 delta and 0.0243 gamma indicate moderate directional exposure and strong sensitivity to price movements, aligning with the stock’s proximity to the 52-week low of $51.80. Put/call ratio of 2.5:1 further underscores heightened defensive positioning among market participants.

Historical backtesting of FUTU’s performance following a 5% intraday decline shows a favorable risk-reward profile. The stock has demonstrated a 51.94% win rate and 0.99% average return within three days, increasing to 56.45% win rate and 7.64% average return over 30 days. The data suggests a high probability of short-to-medium-term recovery, with maximum returns reaching 14.03% by day 59 post-dip. This pattern supports strategic options plays for traders seeking to capitalize on volatility while managing risk through liquidity-optimized contracts like FUTU20250808P147.

A strategy of buying the top 500 stocks by daily trading volume and holding for one day generated a 166.71% return from 2022 to present, outperforming the benchmark by 137.53%. The approach achieved a 31.89% compound annual growth rate with a Sharpe ratio of 1.14 and zero maximum drawdown, demonstrating robust risk-adjusted performance and capital preservation capabilities.