Stellantis Plummets 9.3% Amid One-Off Costs and Chip Crisis Fears: What’s Next for the Auto Giant?

Summary
• Stellantis (STLA) plunges 9.3% intraday to $10.165, erasing $1.05 from its value in under four hours.
• Q3 revenue jumps 13% to €37.2 billion, but CEO Antonio Filosa warns of 'political, economic, and regulatory' charges in H2 2025.
• Global auto sector braces for production halts as Nexperia chip dispute escalates, with Stellantis confirming coordination with suppliers.

Stellantis’ sharp decline reflects a perfect storm of near-term financial headwinds and sector-wide supply chain risks. Despite robust top-line growth, the automaker’s shares have been battered by fears of one-off charges and a deepening chip shortage crisis. With the stock trading near its 52-week low of $8.39, investors are scrambling to assess whether this is a buying opportunity or a warning sign of deeper structural challenges.

One-Off Charges and Chip Crisis Spark Flight from Stellantis
Stellantis’ 9.3% intraday selloff is driven by two critical factors: its admission of H2 2025 charges tied to regulatory and geopolitical pressures and the escalating Nexperia chip shortage. The company’s Q3 earnings report highlighted a 13% revenue increase but warned of 'one-off charges' that will 'largely be excluded from AOI,' signaling potential earnings volatility. Simultaneously, the global auto sector faces a looming production slowdown as Nexperia’s export restrictions disrupt supply chains. Stellantis confirmed it is coordinating with suppliers to mitigate fallout, but the broader sector’s panic—evidenced by GM’s -0.26% move—suggests investors are pricing in near-term operational risks.

Auto Sector Volatility Intensifies as Chip Shortage Threatens Production
The automotive sector is under siege as the Nexperia chip dispute threatens to halt production at U.S. plants within weeks. Stellantis’ 9.3% drop mirrors broader sector jitters, with General Motors (GM) down 0.26% despite its own $13 billion U.S. investment announcement. The chip shortage, which previously crippled automakers during the 2020-2023 crisis, has resurfaced as a critical vulnerability. While Stellantis’ Q3 revenue growth outperformed peers, its shares are now trading at a 45% discount to its 52-week high, reflecting heightened sensitivity to supply chain disruptions.

Options Playbook: Capitalizing on Stellantis’ Volatility with Leverage and Precision
• MACD: 0.3398 (bullish divergence), Signal Line: 0.2834, Histogram: 0.0564 (positive momentum)
• RSI: 58.56 (neutral, approaching oversold)
• Bollinger Bands: Upper $11.46, Middle $10.63, Lower $9.81 (price near lower band)
• 200D MA: $10.64 (current price below key support)

Stellantis’ technicals suggest a short-term rebound is possible, but the 52-week low at $8.39 remains a critical watchpoint. The stock is trading within its 30-day support/resistance range of $10.77–$10.81, but the 200-day average at $10.64 offers a potential floor. For options traders, the STLA20251107P10 and STLA20251107P10.5 contracts stand out due to their high leverage ratios (48.29% and 23.05%) and moderate deltas (-0.4079 and -0.7479), which balance directional exposure with time decay. Both options also exhibit strong gamma (0.5639 and 0.6173), making them responsive to price swings.

Top Option 1: STLA20251107P10
• Code: STLA20251107P10
• Type: Put
• Strike: $10
• Expiration: 2025-11-07
• IV: 43.19% (moderate)
• Leverage: 48.29%
• Delta: -0.4079 (moderate bearishness)
• Theta: -0.0234 (high time decay)
• Gamma: 0.5639 (high sensitivity to price moves)
• Turnover: 3,658 (liquid)
• Payoff at 5% Downside: $0.93 per contract (max profit if STLA drops to $9.63).
This put option is ideal for capitalizing on a near-term breakdown below $10, with its high gamma ensuring responsiveness to volatility. The moderate IV and leverage make it a balanced bet for bearish traders.

Top Option 2: STLA20251107P10.5
• Code: STLA20251107P10.5
• Type: Put
• Strike: $10.50
• Expiration: 2025-11-07
• IV: 32.35% (low)
• Leverage: 23.05%
• Delta: -0.7479 (deep in-the-money)
• Theta: -0.0246 (high time decay)
• Gamma: 0.6173 (very high sensitivity)
• Turnover: 8,520 (highly liquid)
• Payoff at 5% Downside: $1.43 per contract (max profit if STLA drops to $9.63).
This deep put offers downside protection with a lower IV, making it a conservative play for those expecting a sharp selloff. The high gamma ensures it gains value rapidly if the stock breaks below $10.50.

Hook: If STLA closes below $9.81 (lower Bollinger Band), the STLA20251107P10.5 becomes a must-have for bearish positioning.

Backtest Stellantis Stock Performance
Key take-aways• Buying Stellantis (STLA) after sessions that experience an intraday plunge of at least 9 percent delivered a modest absolute and risk-adjusted return over 2022-present. • Tight risk controls (-8 % stop-loss, +20 % take-profit) and a 20-day maximum holding period helped cap drawdowns and lock in occasional rebounds, but also limited upside during strong recoveries. • The strategy’s reward-to-risk profile is positive yet not compelling versus a passive long position; consider refining entry thresholds or complementing with broader market filters to enhance selectivity.Assumptions we auto-completed1. Entry price: next-day close after the plunge (user did not specify). 2. Risk controls: -8 % stop-loss, +20 % take-profit, 20-day max holding period, 25 % max strategy drawdown—chosen as commonly used default limits. 3. Signal generation: any day where (high − low)/high ≥ 9 % between 2022-01-01 and 2025-10-30.You can explore all statistics and trade-by-trade details in the interactive module below.Feel free to dive into the module for full performance charts, equity curves, and trade logs. Let me know if you’d like to tweak parameters—e.g., alternative exit rules, different plunge thresholds, or additional filters—to refine the strategy further.

Stellantis at a Crossroads: Buy the Dip or Ride the Downfall?
Stellantis’ 9.3% drop underscores the fragility of its recovery amid sector-wide headwinds. While its Q3 revenue growth and $13 billion U.S. investment signal long-term resilience, the immediate risks—Nexperia chip shortages and one-off charges—could force the stock to test its 52-week low. Investors should monitor the $9.81 support level and the broader auto sector’s response to supply chain disruptions. For now, the STLA20251107P10.5 put offers a high-gamma, low-IV hedge against a potential breakdown. Meanwhile, General Motors’ -0.26% move highlights the sector’s shared vulnerabilities. Action: Buy the STLA20251107P10.5 if STLA closes below $10.50, or watch for a rebound above $10.64 (200D MA) to re-enter long positions.