Globalstar Plummets 13.5% Amid Sector Turbulence: What’s Fueling the Selloff?

Summary
• Globalstar (GSAT) slumps 13.5% to $31.92, its worst intraday drop since 2020.
• Sector leader Iridium Communications (IRDM) declines 2.55%, hinting at broader satellite sector pressure.
• Options volatility surges, with 21 contracts trading above 50% implied volatility.
• The Space Development Agency’s historic satellite launch on Sept. 10 has sparked a market rotation, with investors reassessing satellite infrastructure valuations. Globalstar’s sharp decline reflects a mix of profit-taking and sector-wide caution as SDA’s $382M York-built constellation enters orbit.

SDA Launch Ignites Sector Rotation
Globalstar’s 13.5% intraday plunge coincided with the U.S. Space Development Agency’s launch of 21 York Space Systems-built satellites for its Transport Layer. While SDA’s $382M contract with York (GSAT’s competitor) signals robust government spending, it also triggered a sector-wide reassessment of satellite infrastructure valuations. Investors, wary of overvaluation in the satellite services sector, rotated out of high-flying names like GSAT and IRDM, favoring cash or defensive plays. The move underscores a shift in market sentiment toward near-term execution risks rather than long-term growth narratives.

Satellite Services Sector Faces Crosscurrents
The Satellite Services sector is under pressure as SDA’s $382M York contract highlights government preference for established players. Iridium Communications (IRDM), a direct competitor to Globalstar, fell 2.55% on the same day, reflecting shared sector headwinds. While SDA’s Tranche 1 Transport Layer aims to create a $126-satellite network, the immediate impact is a reallocation of capital toward firms with proven government ties, leaving pure-play commercial satellite providers like GSAT vulnerable to profit-taking.

Options Playbook: Capitalizing on Volatility and Technical Breakdowns
• RSI: 90.42 (overbought, suggesting exhaustion)
• MACD: 2.32 (bullish), Signal Line: 1.37 (neutral), Histogram: 0.95 (positive divergence)
• Bollinger Bands: Price at $31.92, below the middle band ($28.85), indicating bearish momentum
• 30D MA: 27.62 (below current price), 100D MA: 23.61 (far below)
• Key Levels: Support at $21.93 (lower Bollinger Band), resistance at $26.70 (30D support band)

Top Options Picks:
• GSAT20250919P31 (Put, $31 strike, 9/19 expiry):
- IV: 67.00% (high)
- LVR: 29.58% (moderate leverage)
- Delta: -0.40 (sensitive to price swings)
- Theta: -0.0117 (slow decay)
- Gamma: 0.1101 (high sensitivity to price movement)
- Turnover: $15,072 (liquid)
- Why it stands out: High gamma and IV make this put ideal for a sharp downside move. If GSAT breaks below $26.70, this contract could amplify losses with minimal time decay.
- Payoff at 5% downside (29.82): $1.18/share (max $1.18 profit).
• GSAT20251017P30 (Put, $30 strike, 10/17 expiry):
- IV: 56.57% (moderate)
- LVR: 21.68% (moderate leverage)
- Delta: -0.34 (moderate sensitivity)
- Theta: -0.0147 (moderate decay)
- Gamma: 0.0636 (moderate sensitivity)
- Turnover: $10,431 (liquid)
- Why it stands out: Balanced IV and gamma make this a safer bet for a mid-term bearish play. If GSAT tests $21.93, this put offers controlled exposure.
- Payoff at 5% downside (29.82): $0.18/share (max $0.18 profit).

Action Plan: Aggressive bears should prioritize GSAT20250919P31 for a short-term bet on a breakdown below $26.70. Conservative traders may use GSAT20251017P30 to hedge against a prolonged selloff. Both contracts benefit from high gamma, amplifying returns if GSAT continues its descent.

Backtest Globalstar Stock Performance
Below is an interactive event-backtest panel that summarises how Globalstar (GSAT.O) has historically behaved after suffering an intraday plunge of 14 % or more (period analysed: 2022-01-01 to 2025-09-10). Feel free to explore the charts and detailed statistics inside the module.Key takeaways (concise):• Only three qualifying events occurred in the sample window. • The typical short-term bounce is positive (median +1.7 % on Day 1, +7.8 % by Day 4), but the advantage dissipates beyond the second trading week. • Volatility remains high; the strategy never achieved statistical significance at the 5 % level in this small sample.All dates and results were auto-generated by:• Extracting GSAT daily OHLC data (2022-01-01 to 2025-09-10). • Identifying days where low-to-open drawdown ≤ -14 %. • Running an event-study back-test for 30 trading days post-event.Let me know if you’d like to adjust the plunge threshold, add risk controls, or extend the holding-period analytics.

Urgent: Position for a Sector-Wide Correction
Globalstar’s 13.5% drop is a warning shot for the satellite sector, driven by SDA’s government-led shift toward established providers like York. With RSI at 90.42 and price near the lower Bollinger Band, the technicals confirm exhaustion. Investors should monitor Iridium Communications (IRDM, -2.55%) as a sector barometer. If GSAT breaks below $21.93, the 52W low of $15.00 becomes a critical target. Act now: Short-side options like GSAT20250919P31 offer high leverage to capitalize on this breakdown. Long-term bulls should wait for a rebound above $28.85 before re-entering.