Liberty Broadband C Plunges 18.8%—Is This a Technical Meltdown or Sector Shakeout?

Summary
• Liberty Broadband C (LBRDK) crashes 18.76% intraday to $70.47, marking its steepest decline since 2022
• 13/13 technical indicators signal bearish consensus, with RSI at 25.71 (oversold) and MACD at -1.69 (bearish divergence)
• Options panic erupts: LBRDK20250919P70 puts trade at 267.65% price change ratio, signaling extreme bearish positioning

Liberty Broadband C's freefall has ignited a firestorm of speculation, with its price collapsing from $76.50 at the open to a session low of $70.16. The selloff defies its historically low P/E ratio of 9.43, raising urgent questions about catalysts beyond fundamentals. As the stock tests its 52-week low, traders are scrambling to decode the confluence of technical breakdowns, options-driven volatility, and sector divergence.

Bearish Technicals and Options Panic Drive Unprecedented Selloff
LBRDK's collapse is a perfect storm of bearish technical signals and deteriorating market sentiment. The 20- and 50-day moving averages (86.74 and 93.50) signal sell, while the 200-day MA at $85.36 forms a critical resistance level. RSI at 25.71 confirms oversold territory, and MACD's -1.69 divergence indicates accelerating weakness. The options market mirrors this panic: leveraged puts like LBRDK20250919P70 trade at a 267.65% price change ratio, reflecting extreme bearish positioning. Short-term traders are reacting to the 200-day MA crossover (buy signal) conflicting with the 50-day MA (sell), creating volatility. This technical disarray, combined with options-driven shorting, has created a self-fulfilling selloff.

Telecom Sector Mixed as AT&T Rises 0.6%
While LBRDK plummets, telecom peer AT&T (T) gains 0.59%, highlighting divergent investor behavior. T's 52-week high of $38.75 and recent fiber expansion plans contrast with LBRDK's bearish technicals. This suggests sector-wide optimism about 5G infrastructure, but LBRDK's selloff appears driven by its own valuation pressures and options-driven shorting, rather than broader industry shifts.

Options and ETFs to Capitalize on the Downtrend
• 200-day MA: $85.36 (below current price)
• RSI: 25.71 (oversold)
• MACD: -1.69 (bearish divergence)
• Bollinger Bands: $83.75–$104.21 (current price near lower band)

Top Options Picks
1. LBRDK20250815C65
• Call, $65 strike, 2025-08-15 expiration
• IV: 34.92% (moderate), Delta: 0.888 (high), Theta: -0.140 (rapid time decay), Gamma: 0.031 (modest sensitivity)
• Turnover: 2,740 (high liquidity)
• Payoff under 5% downside: $0 (strike above current price)
• Why: High delta amplifies gains if price rebounds, but theta decay favors short-term holding.

2. LBRDK20250919C70
• Call, $70 strike, 2025-09-19 expiration
• IV: 29.73% (moderate), Delta: 0.625 (balanced), Theta: -0.059, Gamma: 0.045
• Turnover: 1,300
• Payoff under 5% downside: $0 (strike near current price)
• Why: Gamma and delta balance offers controlled exposure to price swings.

Action: Aggressive shorts may target LBRDK20250919P70 (267.65% price change ratio) if the $70 support breaks. Alternatively, buy the LBRDK20250815C65 call for a high-delta play on a rebound above $76.50.

Backtest Liberty Broadband C Stock Performance
The backtest of LBRDK's performance after a -19% intraday plunge shows mixed results. While the 3-day win rate is high at 49.82%, the 10-day win rate is slightly lower at 51.78%, and the 30-day win rate is the lowest at 46.80%. This indicates that short-term gains are more likely after the plunge, but long-term returns are not as certain.

Urgent Setup: Short-Term Volatility and Key Levels to Watch
LBRDK's freefall is likely to persist until it tests the 200-day MA at $81.30 or the 52-week low of $54.62. Traders should monitor the $70.16 intraday low for a breakdown signal and watch for a rebound above $76.50 (today’s open) to trigger a short-covering rally. Meanwhile, the sector leader AT&T (T) rising 0.59% suggests telecom fundamentals remain intact. Act now: Position in LBRDK20250919P70 if $70 breaks, or buy the LBRDK20250815C65 call for a high-delta rebound trade.