HIMS Plummets 6.6% Amid Bearish Technicals and Volatile Options Activity – What’s Next?

Summary
• Hims & Hers Health (HIMS) trades at $42.13, down 6.59% from its $45.00 open
• Intraday range spans $42.025 to $45.10, with turnover surging to 17.5 million shares
• Options chain shows explosive activity in put options at $40–$42 strike prices

Today’s sharp selloff in HIMS has ignited a frenzy in the options market, with put options dominating volume. The stock’s collapse into Bollinger Band support and oversold RSI levels signal a critical juncture. Traders are now parsing technical breakdowns and options positioning to gauge whether this is a short-term correction or a deeper bearish shift.

Bearish Momentum Intensifies as RSI Hits Oversold Territory
HIMS’s 6.6% intraday drop has driven its RSI to 25.6, a textbook oversold level, while MACD (-1.86) and negative histogram (-1.53) confirm deteriorating momentum. The stock has pierced its 200-day MA ($39.96) and is now trading near the lower Bollinger Band ($41.32), a key support zone. Short-term bearish patterns, including a bearish engulfing candlestick, suggest profit-taking after a failed rebound from the 52-week low ($13.47). Elevated turnover (8.63% of float) and a 52-week PE of 51.76 further highlight speculative pressure.

Healthcare Sector Suffers Broad Selloff as UNH Drags
The broader healthcare sector mirrored HIMS’s weakness, with UnitedHealth Group (UNH) down 1.6%. While HIMS’s decline is stock-specific, the sector’s synchronized drop underscores macro concerns—rising interest rates and regulatory scrutiny—pressuring high-PE names. HIMS’s 51.76 PE ratio, well above UNH’s 28.4, amplifies its vulnerability to market rotation.

Options Volatility Soars: Strategic Plays for Short-Term Bearish Exposure
• 200-day MA: $39.96 (below current price)
• RSI: 25.6 (oversold)
• MACD: -1.86 (bearish divergence)
• Bollinger Bands: $41.32 (lower band) as critical support

Key levels to watch: 30D support at $49.74 and 200D support at $30.81. The RSI’s oversold reading and MACD divergence suggest a potential rebound, but the 52W low ($13.47) looms as a tail-risk scenario. No leveraged ETF data is available for direct use.

Top Options Plays:
1. HIMS20250829P40 (Put, $40 strike, 2025-08-29):
• IV: 70.28% (high)
• LVR: 39.44% (moderate)
• Delta: -0.3048 (moderate sensitivity)
• Theta: -0.026977 (moderate time decay)
• Gamma: 0.068018 (high sensitivity to price swings)
• Turnover: 198,458 (liquid)
• Payoff at 5% downside ($39.95): $0.05 (break-even). This put offers a high-gamma, high-IV position ideal for capitalizing on a sharp drop below $40.

2. HIMS20250829P42 (Put, $42 strike, 2025-08-29):
• IV: 68.16% (high)
• LVR: 22.69% (moderate)
• Delta: -0.45606 (strong sensitivity)
• Theta: -0.006725 (low time decay)
• Gamma: 0.079411 (very high sensitivity)
• Turnover: 62,838 (liquid)
• Payoff at 5% downside ($39.95): $2.05 (profit). This put’s high gamma and low theta make it ideal for a prolonged bearish move, with liquidity to ensure execution.

If $41.32 (Bollinger Band) breaks, HIMS20250829P40 offers short-side potential. Aggressive bears may consider HIMS20250829P42 into a breakdown below $40.

Backtest Hims & Hers Health Stock Performance
HIMS has historically shown positive performance after experiencing a -7% intraday plunge. The 3-Day win rate is 52.52%, the 10-Day win rate is 53.86%, and the 30-Day win rate is 55.37%, indicating that the stock tends to rebound in the short term following a significant drop. The maximum return during the backtest period was 16.14%, which occurred on day 59, suggesting that there is potential for substantial gains in the aftermath of a steep intraday decline.

Urgent Action Required: HIMS Faces Critical Support Test – Here’s How to Position
The immediate focus is on the $41.32 Bollinger Band support and $40 psychological level. A close below $40 would validate the bearish case, with the 200D support at $30.81 as a tail-risk target. The sector leader UNH’s -1.6% decline suggests broader healthcare weakness may persist. Traders should prioritize liquidity in put options (e.g., HIMS20250829P40) and monitor the RSI for a potential rebound signal. Watch for a breakdown below $40 or regulatory reaction to dictate next steps.