Ouster Plummets 9.2% Amid Institutional Uncertainty and Volatile Options Activity

Summary
• Ouster (OUST) trades at $30.03, down 9.22% from its previous close of $33.08
• Intraday range spans $29.77 to $32.85, reflecting sharp volatility
• Institutional ownership at 48% amid recent partnership announcements
• Options turnover surges to 2.68M shares, with 20 contracts trading above 50% implied volatility

Ouster’s dramatic intraday selloff has ignited a frenzy in its options market, with traders scrambling to hedge or capitalize on the sharp decline. The stock’s 9.2% drop—its largest single-day move in months—has been fueled by a mix of institutional selling pressure and uncertainty around its recent sensor fusion partnership. With the stock now trading near its 52-week low of $5.94, the question looms: is this a buying opportunity or a warning sign for long-term holders?

Institutional Uncertainty and Partnership Doubts Trigger Selloff
Ouster’s 9.2% intraday decline stems from a confluence of factors. Institutional investors, who control 48% of the float, have shown recent hesitancy following the company’s announcement of a sensor fusion partnership with Constellis. While the partnership was initially touted as a breakthrough in AI-driven security, recent analyst reports suggest skepticism about its scalability and profitability. Additionally, the stock’s sharp drop coincides with a Zacks downgrade, which highlighted the company’s -20.37 P/E ratio and its underperformance relative to the S&P 500. The selloff has been exacerbated by heavy options activity, with put options like OUST20251003P29.5 seeing 7,450 shares traded and a 254.76% price change ratio, signaling aggressive bearish positioning.

Options and ETF Plays for a Volatile Ouster Trade
• MACD: 1.46 (bullish divergence), Signal Line: 0.99, Histogram: 0.47 (positive momentum)
• RSI: 68.37 (overbought territory)
• Bollinger Bands: 35.05 (upper), 30.17 (middle), 25.29 (lower)
• 30D MA: $30.55 (just below current price)

Ouster’s technicals suggest a short-term bounce is possible, but the stock remains vulnerable to further declines. Key support levels at $29.77 (intraday low) and $28.00 (Bollinger lower band) are critical to watch. For traders, the most compelling options are those with high leverage and moderate delta, such as OUST20251003P29.5 and OUST20251003P30.

• OUST20251003P29.5 (Put):
- Strike: $29.50, Expiry: 2025-10-03
- IV: 85.81% (high volatility), Leverage: 20.04%, Delta: -0.4347 (moderate bearish exposure)
- Theta: -0.0238 (slow time decay), Gamma: 0.0928 (high sensitivity to price swings)
- Turnover: 7,450 shares (liquid)
- Payoff at 5% downside (28.53): $0.97 per contract
- This put offers aggressive leverage for a 5% move lower, with strong gamma to amplify gains if the stock continues to fall.

• OUST20251003P30 (Put):
- Strike: $30.00, Expiry: 2025-10-03
- IV: 84.94% (high volatility), Leverage: 17.26%, Delta: -0.4820 (strong bearish bias)
- Theta: -0.0172 (minimal time decay), Gamma: 0.0949 (high sensitivity)
- Turnover: 25,254 shares (extremely liquid)
- Payoff at 5% downside (28.53): $1.47 per contract
- This put is ideal for a moderate bearish bet, with high liquidity and leverage to capitalize on a potential breakdown below $30.

Action: Aggressive bears should prioritize OUST20251003P30 for a short-term trade, while OUST20251003P29.5 offers higher leverage for a deeper selloff. Both contracts benefit from elevated implied volatility and strong gamma, making them responsive to further price declines.

Backtest Ouster Stock Performance
It looks like our system ran into a timeout while extracting the exact dates on which OUST fell 9 % or more intraday. The raw data for daily returns has already been successfully downloaded, so all that remains is the (quick) date-filter step before we can run the back-test.Here are two options to move forward:1. Retry the date-extraction step now (recommended – usually succeeds on the second attempt). 2. If you prefer not to wait, I can provide you a manual summary of the typical performance pattern after large intraday drops, based on comparable stocks, while the automated back-test finishes in the background.Which would you like to do?

Ouster at a Crossroads: Watch $29.77 Support and Sector Sentiment
Ouster’s 9.2% drop has created a critical inflection point. While technical indicators like the MACD and RSI suggest potential for a short-term rebound, the stock’s proximity to its 52-week low and elevated put options activity signal ongoing bearish pressure. Investors should monitor the $29.77 intraday low and the $28.00 Bollinger lower band as key support levels. Meanwhile, the sector leader Texas Instruments (TXN) has risen 1.39%, outperforming Ouster’s selloff, highlighting the importance of broader market sentiment. For now, the path of least resistance appears downward—aggressive traders should consider short-term put options or ETFs with sector exposure, while long-term holders may find value at these levels if the stock stabilizes.