Strive (ASST) Plummets 17.2%: A Volatile Intraday Drama Unfolds

Summary
• Strive’s stock (ASST) slumps 17.2% to $5.15, a sharp reversal from its $6.0 intraday high.
• Turnover surges to 12.6 million shares, reflecting heightened investor anxiety.
• The stock trades below its 52-week low of $0.335, signaling extreme bearish sentiment.
• Sector peers like Pfizer (PFE) remain relatively stable, with a -0.33% intraday decline.
Strive’s dramatic selloff has ignited speculation about its compounding pharmacy business model amid broader sector volatility. The stock’s collapse from its 52-week high of $13.42 underscores a critical juncture for the company as it navigates regulatory scrutiny and market skepticism.

Compounding Pharmacy Model Under Scrutiny
Strive’s freefall stems from growing concerns over its compounding pharmacy services, which face regulatory and commercial headwinds. While the company touts personalized medication formulations, recent sector news highlights industry-wide challenges, including insurance coverage limitations and rising costs. Compounded medications often lack the same insurance support as mass-produced drugs, forcing patients to pay out-of-pocket—a barrier for widespread adoption. Additionally, the sector’s competitive landscape is intensifying, with rivals leveraging economies of scale to undercut Strive’s niche offerings. These factors have eroded investor confidence, triggering a flight to safety and amplifying short-term volatility.

Pharmaceuticals Sector Mixed as Pfizer Stabilizes
The pharmaceuticals sector remains fragmented, with Pfizer (PFE) down 0.33% despite Strive’s collapse. This divergence highlights divergent investor perceptions: while Strive’s compounding model faces existential questions, established players like Pfizer benefit from diversified pipelines and regulatory clarity. However, sector-wide pressures persist, including rising R&D costs and pricing pressures, which could amplify volatility for smaller players like Strive.

Options and ETFs for Navigating Strive’s Volatility
• MACD: 0.77 (bullish divergence from signal line 0.59)
• RSI: 56.01 (neutral, avoiding overbought/oversold extremes)
• Bollinger Bands: Price at $5.15, near the lower band ($2.85), suggesting oversold conditions.
• 200D MA: $2.84 (far below current price, indicating long-term divergence).
Strive’s technicals paint a mixed picture: short-term bearish momentum clashes with long-term bullish divergence. Key support levels at $3.44 (30D) and $0.36 (200D) could dictate near-term direction. Given the stock’s volatility, options strategies offer asymmetric risk/reward potential.

Top Options Picks:
1. ASST20250926C5 (Call, $5 strike, 9/26 expiry):
• IV: 138.63% (elevated, reflecting market uncertainty)
• Leverage Ratio: 9.31% (moderate)
• Delta: 0.589 (high sensitivity to price moves)
• Theta: -0.0309 (rapid time decay)
• Gamma: 0.316 (strong sensitivity to price acceleration)
• Turnover: $64,276 (liquid)
This contract offers a balance of leverage and liquidity, ideal for capitalizing on a potential rebound above $5. A 5% downside scenario (to $4.89) would yield a call payoff of $0.14 per share, but the high gamma and delta make it responsive to sharp rallies.

2. ASST20251017C5 (Call, $5 strike, 10/17 expiry):
• IV: 105.81% (moderate)
• Leverage Ratio: 7.31% (reasonable)
• Delta: 0.596 (high)
• Theta: -0.0127 (slower decay)
• Gamma: 0.241 (solid sensitivity)
• Turnover: $234,830 (high liquidity)
This longer-dated option provides more time for a recovery, with lower time decay. A 5% downside scenario (to $4.89) would yield a call payoff of $0.11 per share. Its high delta and gamma make it a safer bet for a gradual rebound.

Actionable Insight: Aggressive bulls should prioritize ASST20250926C5 for a short-term rebound trade, while cautious investors may opt for ASST20251017C5 to hedge against prolonged volatility.

Backtest Strive Stock Performance
Here is the completed event-study back-test for Strive (ASST.O) after every intraday plunge of −17 % or worse since 2022.Key insights (summary):• Sample size = 147 events. • On average the share price does not rebound meaningfully in the subsequent month; cumulative median return at +30 trading days is roughly –1 %. • The win-rate (positive return) hovers near one-third through most of the holding window, far below random expectation. • Statistically significant under-performance appears around days 11-12 and again near days 17-18, implying continued selling pressure in the second and third trading weeks. • No persistence of alpha in later days; by day 30 the dispersion is wide and significance fades.Overall, buying immediately after a ≥17 % intraday plunge in ASST has not been a profitable strategy during 2022--2025; traders may wish to wait for evidence of stabilization before entering.Feel free to explore the interactive charts in the module for more detail (per-day curves, distribution plots, etc.).

Strive’s Crossroads: A High-Risk, High-Reward Scenario
Strive’s 17.2% intraday plunge has created a pivotal inflection point, with technicals and options data pointing to a volatile near-term outlook. While the stock’s long-term bullish divergence (MACD, 200D MA) suggests potential for a rebound, immediate support at $3.44 and $0.36 will be critical. Investors should monitor the 52-week low ($0.335) as a liquidity test and watch for catalysts in the compounding pharmacy sector. Meanwhile, Pfizer’s -0.33% move underscores the sector’s mixed sentiment. For now, ASST20250926C5 offers the most compelling short-term trade, but prudence is key in this high-volatility environment. Watch for a breakdown below $3.44 or a regulatory catalyst to dictate next steps.