loanDepot (LDI) Surges 15% on Intraday Frenzy: What’s Fueling the Volatility?

Summary
• loanDepot (LDI) rockets 15.17% to $3.075, defying a 83.04% insider ownership and months of aggressive insider selling.
• Intraday volume surges to 4.3 million shares, 4.2% of float, amid a 3.08 high and 2.65 low.
• RSI hits 69.47, MACD turns bullish, and options chain erupts with 163.97% implied volatility on the 1/23 3-strike call.

loanDepot’s stock is in a tailspin of contradictions. Despite a 15% intraday surge, the company’s CEO and directors have sold over $64 million in shares since 2024. Technicals suggest a short-term bullish breakout, but the options market is pricing in extreme volatility. This article dissects the forces driving LDI’s frenetic move and what traders should watch next.

Insider Selling Contradicts Bullish Momentum
loanDepot’s 15.17% intraday surge defies a 12-month insider selling spree totaling $64.4 million. CEO Anthony Li Hsieh alone has offloaded 23 million shares since 2024, yet the stock is now trading near its 52-week high of $5.05. The disconnect suggests short-covering or a liquidity-driven squeeze. With 83.04% insider ownership, the recent price action may reflect forced selling pressure from margin calls or portfolio rebalancing. However, the 3.08 intraday high—just 39% below the 52-week peak—indicates retail and algorithmic buyers are testing resistance levels ahead of the 1/23 options expiration.

Consumer Finance Sector Rally Fuels LDI’s Surge
The Consumer Finance sector, led by LendingClub (LC) up 2.75%, is in a broader upswing. However, LDI’s 15% move far outpaces sector peers, suggesting idiosyncratic factors. The sector’s 20.09 P/E ratio contrasts with LDI’s -19.13 dynamic P/E, highlighting its speculative nature. While LC’s 2.75% gain reflects broader market optimism, LDI’s move is driven by technical momentum and options-driven volatility, not fundamental sector rotation.

Options Volatility and Technicals Signal Aggressive Playbook
• RSI: 69.47 (overbought)
• MACD: 0.036 (bullish), Signal Line: -0.039
• Bollinger Bands: 2.86 (upper), 2.34 (middle), 1.81 (lower)
• 200D MA: 2.13 (below price)
• Turnover Rate: 4.2% (high liquidity)

loanDepot’s technicals and options chain scream for aggressive positioning. The stock is trading near its 52-week high with RSI in overbought territory, but the 3.08 intraday high suggests buyers are willing to test resistance. The 1/23 3-strike call (LDI20260123C3) and 3-strike put (LDI20260123P3) are top picks. The call has a 60.5% delta, 111.55% IV, and 76,047 turnover, while the put offers -40.25% delta and 163.97% IV with 980 turnover. Both contracts have high gamma (0.75 and 0.52) and theta (-0.02 and -0.01), making them sensitive to price swings and time decay. A 5% upside to $3.23 would yield a 366.67% gain on the call, while a 5% downside to $2.92 would see the put’s price drop by 37.5%. Traders should consider a straddle or strangle to capitalize on the 163.97% IV premium, but be mindful of the 1/23 expiration’s time decay.

Backtest loanDepot Stock Performance
The backtest of the Long Duration Investment (LDI) strategy after a 15% intraday increase from 2022 to the present reveals a mixed performance. While the strategy has a high win rate across various time frames, the returns are relatively modest, and the maximum return during the backtest period was only 4.97%, which occurred on January 15, 2026.

Breakout or Bluff? Watch These Levels
loanDepot’s 15% surge is a high-stakes gamble. The 3.08 intraday high is a critical pivot; a close above this could trigger a retest of the 52-week high at $5.05. Conversely, a breakdown below the 2.65 intraday low would validate the bearish thesis of forced selling. The sector leader LendingClub (LC) is up 2.75%, but LDI’s move is driven by technicals, not fundamentals. Traders should monitor the 1/23 3-strike options for liquidity shifts and watch for a breakout above 3.08 or a breakdown below 2.65. For now, the 163.97% IV in the 1/23 3-strike put suggests the market is pricing in a sharp reversal, but the 60.5% delta call indicates bullish conviction. Position sizing is key—this is a high-volatility, high-reward trade.