TIGR Plunges 9.8%: What's Behind the Sudden Sell-Off Amid Record Earnings?

Summary
• UP Fintech Holding (TIGR) slumps 9.8% to $11.56, erasing $1.3 billion in market cap
• Q2 revenue surges 58.7% to $138.7 million, non-GAAP net income jumps 7x YoY
• Options chain sees 119,875 contracts traded, with TIGR20250905P11.5 leading volume

UP Fintech Holding’s stock has plunged to a 52-week low amid a sharp intraday selloff, despite reporting record quarterly earnings. The $11.56 price point—down from a $12.57 intraday high—reflects a dramatic disconnect between fundamentals and market sentiment. With options volatility spiking and sector peers like Charles Schwab (SCHW) posting modest gains, the question looms: What triggered this abrupt reversal in investor confidence for a fintech firm boasting 1.19 million funded accounts and $52.1 billion in client assets?

Earnings Optimism vs. Market Realism Clash
The selloff defies UP Fintech’s stellar Q2 results: 58.7% revenue growth, 7x YoY non-GAAP net income, and 36.3% YoY client asset expansion. However, the market appears to be recalibrating expectations after the stock’s 13.5% QoQ total account balance increase collided with a 9.8% intraday price drop. The disconnect may stem from profit-taking following the CEO’s bullish guidance—"operating profit already surpasses 2024 full-year levels"—which could have triggered short-term hedging. Additionally, the 7.05% turnover rate suggests heavy institutional activity, potentially signaling a shift in long-term positioning despite short-term gains.

Broker-Dealer Sector Steadies as TIGR Dives
Bearish Put and Bullish Call Plays in Volatile Environment
• 200-day average: 8.12 (below) • RSI: 83.33 (overbought) • MACD: 0.62 (bullish) • Bollinger Bands: 12.63 (upper), 10.53 (middle), 8.43 (lower)

Technical indicators suggest a short-term bearish bias despite long-term bullish fundamentals. Key support levels at $10.53 (30D MA) and $8.43 (lower Bollinger) could trigger further declines. The TIGR20250905P11.5 put option (strike $11.5, IV 66.98%, leverage 25.20%, gamma 0.3076) offers high gamma sensitivity and liquidity (10,645 turnover), ideal for a 5% downside scenario where payoff reaches $0.03. Conversely, the TIGR20250905C11.5 call (strike $11.5, IV 61.25%, leverage 22.29%, theta -0.0484) balances moderate delta (0.555) with high liquidity (55,146 turnover), positioning for a rebound above $12.57. Aggressive bulls may consider TIGR20250905C11.5 into a bounce above $12.57.

Backtest UP Fintech Holding Stock Performance
After a -10% intraday plunge, TIGR has historically shown positive short-to-medium-term gains. The 3-day win rate is 50.97%, the 10-day win rate is 49.19%, and the 30-day win rate is 54.71%. This indicates a higher probability of positive returns in the immediate aftermath of a significant downturn.

Rebound or Reassessment? Watch $10.53 Support
The selloff reflects a tug-of-war between UP Fintech’s robust earnings and market skepticism about valuation sustainability. With RSI at overbought levels and MACD divergence, a pullback to $10.53 (30D MA) could test conviction. Sector leader SCHW (up 0.04%) offers a benchmark for broader broker-dealer sentiment. Investors should monitor the $11.50 psychological level and 9.5% turnover rate for clues on institutional positioning. Action: Short-term traders may target $10.53 support with TIGR20250905P11.5, while long-term bulls should watch $12.57 retests.