Sea Shares Plunge on 159% Volume Surge as Analysts Split and Bearish Bets Dominate 107th-Ranked Stock

Sea Limited (SE) fell 3.38% on August 5, 2025, with a trading volume of $850 million, a 159.05% increase from the previous day. The stock ranked 107th in trading volume across the market. Analysts issued conflicting signals, with JPMorgan upgrading to 'Overweight' and Bank of America downgrading to 'Neutral', reflecting uncertainty over short-term outlook.

The stock’s decline followed mixed earnings results, where Q2 revenue rose 29.6% year-on-year to $4.84 billion but failed to meet expectations. Options activity intensified, with heavy trading in August 15 puts at the $145 strike. Technical indicators showed a neutral RSI (48.13) and a bullish MACD (0.50), while key support levels at $149.04 and $146.10 were closely watched for directional cues.

Put options with $145 and $146 strikes dominated trading, offering asymmetric exposure amid high implied volatility (95.65–94.35%). These contracts provided liquidity and leverage for bearish bets, with payoffs tied to a potential 5% drop in share price. Traders focused on intraday lows and Bollinger Band thresholds to gauge short-term momentum.

The backtested strategy of purchasing top 500 high-volume stocks and holding for one day generated a 166.71% return from 2022 to present, outperforming the benchmark by 137.53%. This highlights the role of liquidity concentration in capturing short-term market movements, particularly in volatile environments where rapid price swings create trading opportunities.