Liberty Broadband C Plunges 18.59%—What’s Fueling This Sudden Freefall?

Summary
• Liberty Broadband C (LBRDK) collapses 18.59% to $70.62, its lowest since mid-2024
• Technical indicators signal bearish consensus, with 13/13 signals leaning sell/neutral
• Options market sees extreme bearish positioning, with leveraged puts trading at 267.65% price change ratios
• AT&T (T) defies sector selloff, rising 0.64% on fiber expansion optimism

Liberty Broadband C’s freefall has rattled traders, with its price plummeting from a morning open of $76.5 to a session low of $70.16. The move defies its historically low P/E ratio of 9.44 and raises urgent questions about catalysts beyond fundamentals. Meanwhile, telecom peer AT&T gains 0.64%, highlighting divergent investor behavior as the sector navigates 5G infrastructure optimism and valuation pressures.

Bearish Technicals and Market Sentiment Fuel the Selloff
LBRDK’s collapse is driven by a convergence of bearish technical signals and deteriorating market sentiment. The 20- and 50-day moving averages both signal sell, while the RSI of 25.71 indicates oversold territory. Short-term traders are reacting to the 200-day MA crossover (buy signal) conflicting with the 50-day MA (sell), creating volatility. Meanwhile, the options market reflects panic: leveraged puts like LBRDK20250919P70 trade with a 267.65% price change ratio, signaling extreme bearish positioning.

Telecom Sector Mixed as T Rises 0.61%
While LBRDK plummets, telecom peer AT&T (T) gains 0.61%, 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)

Trading Setup: 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 0.61% suggests telecom fundamentals remain intact.
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 favorable.

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 0.61% suggests telecom fundamentals remain intact. Act now: Position in LBRDK20250919P70 if $70 breaks, or buy the LBRDK20250815C65 call for a high-delta rebound trade.