Monday.com Plunges 4.29% with $290M Volume, Ranking 412th as Sector Weakness and Macro Factors Drive Bearish Momentum

On August 7, 2025, Monday.com (MNDY) closed at a 4.29% decline, trading with a daily volume of $0.29 billion, ranking 412th in market activity. The stock’s sharp drop triggered heightened volatility in options markets, with key technical indicators signaling bearish momentum. RSI entered oversold territory at 28.46, while MACD remained negative, reinforcing downward pressure. Price action showed intraday consolidation between $242.52 and $264.00, with the MNDY20250815P250 put option exhibiting elevated implied volatility of 88.41% and a leverage ratio of 15.22%, reflecting aggressive short-term bearish positioning.

The Software—Application sector faced broad-based weakness, exacerbating MNDY’s decline. Elevated P/E ratios and stagnant earnings estimates across the sector amplified selling pressure. Analysts noted that macroeconomic factors, including rising interest rates and softening SaaS demand, contributed to the synchronized downturn. Bollinger Bands indicated exhausted sellers as the price approached the $247.57 lower band, a critical support level. Aggressive traders are monitoring potential breakouts below this threshold, which could trigger further declines toward the 52-week low of $202.01.

Options strategies highlighted the MNDY20250815P250 put as a focal point for capitalizing on near-term volatility. With a delta of -0.526 and theta of -0.073, the contract’s rapid time decay underscores the urgency for a swift price move. Liquidity remains robust, with $269,454 in turnover, supporting its viability for leveraged short positions. A breakdown below $247.57 could amplify gains, while a rebound above $283.41 might offer countertrend opportunities. Sector dynamics and macroeconomic signals will remain pivotal in shaping the stock’s trajectory.

The backtest of MNDY’s performance following a -5% intraday plunge demonstrated favorable short-to-medium-term outcomes. Historical data revealed a 54.13% win rate over three days, 54.75% over ten days, and 56.82% over 30 days. The strategy’s consistency across time frames, including a maximum 8.05% return within 30 days, underscores its potential in volatile markets. This aligns with broader liquidity-driven strategies, where high-volume stocks often outperform during periods of market turbulence.