Presidio Property Plummets 34%—What’s Fueling the Freefall?

• SQFT opens at $9.50 but plummets to $8.55 intraday—30.5% single-day loss.
• Recent $2.05M direct offering follows a 260% surge, sparking volatile trading.
• Sector peers like PLD dip 0.99%, but SQFT’s freefall defies broader Real Estate trends.

Presidio Property Trust’s stock is in freefall today, erasing weeks of gains in hours. The $2.05M direct offering announcement and prior volatility created a perfect storm, with the stock trading near 52-week lows despite recent surges. Investors now watch if technical support holds or the rout continues.

Profit-Taking After Explosive Volatility Drives the Plunge
SQFT’s 30.5% crash stems directly from extreme volatility. The stock surged 260% on July 14, followed by a 166% gain to $13.60, creating an overbought trap. Today’s price action reflects a violent unwind of leveraged positions and profit-taking after the unsustainable rally. The $2.05M direct offering—a small capital raise relative to recent swings—fueled short-term speculation that reversed as traders locked in gains. Technical indicators like the RSI (89.67) confirm an overbought extreme, with the collapse aligning with mean-reversion forces correcting the prior mania.

Real Estate Sector Lags, But SQFT’s Rout Stands Alone
While the Real Estate sector dipped slightly—Prologis (PLD) fell 0.99%—SQFT’s 30% plunge is an outlier. Peers like AEW Capital’s $1.75B fund close and Drake Real Estate’s $515M raise highlight stable institutional demand in the sector, contrasting with SQFT’s retail-driven volatility. The disconnect underscores SQFT’s micro-cap status and lack of institutional support, making it vulnerable to speculative swings absent fundamentals.

Beware the Bearish Technicals—Options Liquidity Remains a Hurdle
• RSI: 89.67 (Deep Overbought)
• MACD: 0.916 (Above Signal Line)
• Bollinger Bands: Current price ($8.96) exceeds Upper Band ($9.22)
• 200-Day MA: $1.56 (Lagging severely)

Technicals scream caution. The RSI’s extreme reading signals a potential rebound, but the MACD’s bullish stance creates a tug-of-war. Traders should focus on the $8.55 intraday low as critical support—failure risks a collapse toward the 52W low ($4.19).

The only listed option is SQFT20251219P7.5 (Put, $7.50 strike).
- Implied Volatility: 17.45% (Low liquidity, 0 volume)
- Delta: -0.01 (Near ATM, minimal directional exposure)
- Theta: -0.000078 (Negligible time decay)
- Gamma: 0.0304 (Moderate sensitivity to price moves)

This put offers minimal leverage (1888% ratio due to ultra-low premium) but suffers from zero liquidity—trading it risks slippage. Aggressive shorts might target the $7.50 strike, but wait for volume to materialize. Trade Idea: Avoid options until liquidity emerges; focus on price action below $9.00.

Backtest Presidio Property Stock Performance
The Backtest of the SQFT performance after a -34% intraday plunge shows mixed results. While the 3-Day win rate is 43.15%, the 10-Day win rate is 42.68%, and the 30-Day win rate is 41.08%, indicating a higher probability of positive returns in the short term. However, the maximum return during the backtest period was only 0.06%, with a maximum return day at 18, suggesting that even in the presence of some positive returns, they were relatively modest.

SQFT’s Volatility Spree Hits a Wall—Beware the Bear Trap
Presidio Property’s 30% crash marks a brutal correction for traders betting on its wild swings. While the RSI overbought reading hints at a near-term bounce, the broader technicals and lack of sector support suggest further downside. Watch for the $8.55 low to hold—if it breaks, the 52-week low ($4.19) becomes the next target. Sector leader Prologis (PLD)’s muted -1% move highlights SQFT’s standalone risk. Action Alert: Exit longs below $9.00; avoid new entries until volatility stabilizes.