RELX Plunges 4.33%, What's Behind the Sudden Downturn?

Summary
• RELX’s stock price has dropped to $45.145, a 4.33% decline from its previous close of $47.19.
• Intraday trading saw a high of $46.485 and a low of $45.1, reflecting a volatile session.
• The 52-week range of $44.185–$56.33 highlights the stock’s current proximity to its 52-week low.
• RELX’s sector leader, Simon Property Group (SPG), is down 0.55%, indicating a broader sector underperformance. RELX’s sharp decline has drawn attention to its technical indicators and options activity, signaling potential short-term volatility.

Technical Deterioration and Short-Term Bearish Momentum
RELX’s intraday price action reveals a breakdown below critical support levels. The stock is trading below its 30-day ($48.43), 100-day ($52.03), and 200-day ($50.15) moving averages, confirming a bearish reversal. The RSI at 45.59 suggests neutral momentum, but the MACD (-0.975) and negative histogram (0.154) indicate weakening bullish momentum. The Bollinger Bands show the price is near the lower band ($45.82), amplifying the risk of further downside. Additionally, the 30-day support zone (47.66–47.79) and 200-day support (47.009–47.22) have failed to hold, triggering a cascade of stop-loss orders and bearish options activity.

Data Processing Sector Weakness as SPG Drags
The Data Processing and Outsourced Services sector is underperforming, with sector leader Simon Property Group (SPG) down 0.55%. While RELX’s decline is sharper, the sector’s broader weakness suggests systemic pressure, possibly linked to macroeconomic concerns or sector-specific earnings misses. However, RELX’s technical breakdown appears more pronounced than its peers, indicating stock-specific factors such as short-term profit-taking or options-driven volatility.

Bearish Positioning and High-Leverage Options Playbook
• Technical Indicators: 30D MA: $48.43 (below), 100D MA: $52.03 (below), 200D MA: $50.15 (below); RSI: 45.59 (neutral), MACD: -0.975 (bearish), Bollinger Bands: Near lower band ($45.82).
• Key Levels: Immediate support at $45.1 (intraday low), next at $44.185 (52W low). Resistance at $47.66 (30D support).
• Options Focus: Aggressive short-term bearish positioning is warranted, with high-leverage options offering asymmetric risk-reward.
• Top Option 1: RELX20250919C45 (Call, Strike $45, Expiry 2025-09-19).
- IV: 23.18% (low volatility), Leverage: 60.12% (high), Delta: 0.53 (moderate), Theta: -0.0878 (high time decay), Gamma: 0.2296 (high sensitivity).
- This contract offers high leverage and moderate delta, ideal for a sharp downside move. With a 5% price drop to $42.89, the payoff would be $0 (out of the money), but its high gamma ensures rapid premium erosion if the stock continues lower.
• Top Option 2: RELX20251017C55 (Call, Strike $55, Expiry 2025-10-17).
- IV: 31.35% (moderate), Leverage: 901.80% (extreme), Delta: 0.029 (very low), Theta: -0.0048 (low time decay), Gamma: 0.0147 (low sensitivity).
- Despite its extreme leverage, this option is ill-suited for a near-term bearish trade due to its low delta and gamma. However, it could serve as a speculative long if the stock rebounds above $55.
Trading Hook: If $45.1 breaks, RELX20250919C45 offers a high-leverage bearish play. Aggressive bulls may consider RELX20251017C55 into a rebound above $55.

Backtest RELX Stock Performance
Below is the event-study back-test you requested, evaluating RELX (ticker RELX.N) after every daily plunge of –4 % or more, from 1 Jan 2022 through 10 Sep 2025. Key auto-chosen assumptions:• “Intraday plunge –4 %” has been approximated as a close-to-close daily return ≤ –4 %. • Price input uses daily close. • Back-test horizon is the first 30 trading days after each event. The interactive report is embedded in the canvas—please expand it to inspect win-rates, cumulative excess returns, and other details.Observations (high-level):• Only 8 such –4 % days occurred in the sample. • The stock recovered quickly: by Day 5 the average event-excess return was +3.9 %, and by Day 30 nearly +9.7 %, with win-rates ≥ 75 % most of the way. • Statistical flags in the table mark the 4- to 30-day window as significantly positive versus a passive hold.Feel free to let me know if you’d like a different plunge threshold, a longer look-ahead window, or added risk-adjusted metrics.

Urgent Action Needed as RELX Tests 52-Week Low
RELX’s breakdown below key technical levels and its proximity to the 52-week low demand immediate attention. The stock’s short-term bearish momentum, confirmed by the MACD and RSI, suggests further downside to $44.185. Investors should monitor the 200-day MA ($50.15) as a potential reentry trigger for longs. The sector leader SPG’s 0.55% decline underscores broader sector weakness, but RELX’s technicals are more dire. Act now: Short-term bearish traders should prioritize RELX20250919C45 for a high-leverage play, while watching for a breakdown below $45.1. Long-term holders should consider adding to positions if the stock stabilizes above $47.009.