SE Plummets 4.56% Amid Volatile Intraday Action: What's Fueling the Selloff?

Summary
• Current Price: $178.03, down 4.56% from previous close of $186.54
• Intraday Range: $176.50 (low) to $181.86 (high)
• 52-Week Range: $76.38–$190.75
• Turnover Surpasses 3.4M Shares, Highlighting Elevated Volatility

Sea Ltd. (SE) is experiencing a sharp intraday selloff, with its price plunging nearly 5% below the previous close. The stock’s dramatic move has triggered heightened options activity and technical divergence, raising questions about the sustainability of its long-term bullish trend. Traders are now scrutinizing key support levels and options chain dynamics to gauge potential follow-through.

Technical Overbought Conditions Trigger Profit-Taking
The selloff in SE is primarily driven by overbought technical conditions. The RSI (87.74) has entered extreme overbought territory, signaling a high probability of short-term correction. Additionally, the MACD histogram (1.18) remains positive, but the narrowing gap between the MACD line (7.87) and signal line (6.69) suggests weakening momentum. Price action has also broken below the Bollinger Bands upper band (202.28), confirming a shift in sentiment from aggressive buying to profit-taking. With the 30-day moving average (166.87) and 200-day average (136.71) far below current levels, the correction appears to be a healthy retracement rather than a structural breakdown.

Options Playbook: Capitalizing on Volatility with Precision
• 200-Day Average: $136.71 (far below current price)
• RSI: 87.74 (overbought)
• MACD Histogram: 1.18 (positive but narrowing)
• Bollinger Bands: Price at $178.03 vs. Upper Band $202.28

Key levels to monitor include the 30-day support range ($173.99–$174.83) and the 200-day support ($115.63–$117.44). While the long-term bullish trend remains intact, short-term volatility suggests a consolidation phase. The options chain reveals two high-conviction plays for bearish exposure:

• SE20250912C180 (Call)
- Strike: $180, Expiry: 2025-09-12
- IV: 31.75% (moderate), Leverage: 55.03%
- Delta: 0.45 (moderate sensitivity), Theta: -0.47 (high time decay)
- Turnover: 69,410 (liquid)
- Payoff at 5% Downside: $187.03 → $7.03 profit per contract
- This call offers a balance of leverage and liquidity, ideal for capitalizing on a potential rebound from key support.

• SE20250912C182.5 (Call)
- Strike: $182.5, Expiry: 2025-09-12
- IV: 32.03% (moderate), Leverage: 76.85%
- Delta: 0.356 (moderate), Theta: -0.403 (high time decay)
- Turnover: 28,712 (liquid)
- Payoff at 5% Downside: $187.03 → $4.53 profit per contract
- This contract’s high leverage and moderate delta make it a compelling play for aggressive bulls expecting a bounce above $182.50.

Action Alert: Aggressive bulls may consider SE20250912C180 into a rebound above $182.50, while cautious bears should watch for a breakdown below $174.83.

Backtest Sea Stock Performance

SE at Crossroads: Watch for $174.83 Support and Sector Leadership Shifts
The current selloff in SE appears to be a technical correction rather than a fundamental breakdown. Traders should closely monitor the 30-day support range ($173.99–$174.83) and the 200-day support ($115.63–$117.44) to determine the next directional move. While the sector leader EA remains relatively stable (-0.0087% intraday), its muted performance suggests limited sector-wide catalysts. A decisive close below $174.83 would validate a deeper correction, while a rebound above $182.50 could reignite the long-term bullish trend. Act Now: Position for a bounce with SE20250912C180 or hedge downside risk with a short-term put if the 30-day support fails.