MP Materials Drops 4.42% Amid Investor Sell-Off

MP Materials(MP)涨4.42%。，The share price fell to its lowest level since January 2025 today, with an intraday decline of 0.69%.

The strategy of buying MP shares after they reached a recent low and holding for 1 week yielded moderate returns over the past 5 years, with a 33.1% gain. This suggests that the strategy can be effective for capturing short-term rebounds in MP's stock price, particularly in volatile periods. However, the overall performance is somewhat muted, indicating that the recent low point may not always coincide with the most optimal buying opportunity.

MP Materials' stock price has been influenced by several key factors recently. One significant development is the reduction in the stake held by Tidal Investments LLC, which trimmed its position by 22.3%. This move by a major investor can often signal a shift in market sentiment and has likely contributed to the recent volatility in MP Materials' stock price.

Additionally, there has been an unusually high call volume in MP Materials options trading, with 39,846 calls traded. This high volume indicates a strong bullish sentiment among traders, as the implied volatility increased almost 5 points to 75.59%. The most active options are the Jul-25 25 calls and Jan-26 40 calls, with a Put/Call Ratio of 0.03. This suggests that many traders are betting on a future rise in the stock price, despite the recent downward trend.

MP Materials' stock price has experienced a downward trend, falling in 7 of the last 10 trading days. This trend has seen the stock price fluctuate within a range from a low of $18.76 to a high of $19.77. The recent decline in the stock price has been accompanied by a significant level of short-selling activity, with a short interest of 31.12 million shares, representing 26.01% of the float. This high level of short-selling can indicate that many investors are betting against the stock, which may contribute to further price volatility.