TMC the Metals Plunges 9.12%—What’s Fueling the Sudden Sell-Off?

Summary
• TMC’s stock price tumbles to $5.1528, a 9.12% drop from its previous close of $5.67
• Intraday range narrows to $5.11–$5.52, signaling heightened volatility
• Options chain shows elevated implied volatility (89.19–109.57%) and leveraged contracts with 14.27–1027.54% leverage ratios

The Metals Company (TMC) has plunged nearly 9.12% intraday, trading at $5.1528 as of 15:44:02 on September 4, 2025. The stock’s sharp decline has sparked speculation about underlying catalysts, with the company’s recent corporate updates and sector dynamics under scrutiny. Amid a volatile session marked by a 41.27M turnover, investors are dissecting technical indicators and options activity to gauge the move’s sustainability.

Corporate Updates and Market Sentiment Trigger Volatility
The sharp selloff in TMC appears tied to mixed signals from the company’s recent corporate updates. While the firm announced a $23.6B NPV economic study and declared world-first nodule reserves in August, the stock’s intraday collapse suggests investor skepticism. The company’s focus on deep-sea mineral extraction for EV and energy storage markets remains ambitious, but execution risks—such as regulatory hurdles and environmental concerns—loom large. Additionally, the broader industrial metals sector faces headwinds, with MP Materials (MP) down 4.10% and CRML (Critical Metals) down 7.28%, reflecting sector-wide jitters.

Industrial Metals Sector Under Pressure as MP Materials Leads Decline
The industrial metals sector has seen broad-based weakness, with MP Materials (MP) down 4.10% and Critical Metals (CRML) down 7.28%. TMC’s 9.12% drop aligns with this trend, though its steeper decline suggests additional company-specific concerns. The sector’s struggles are partly linked to macroeconomic factors, including inflationary pressures and slowing EV demand forecasts. However, TMC’s unique exposure to deep-sea mining and its recent corporate announcements differentiate it from peers like MP, which focuses on rare earth elements.

Options and ETFs for Navigating TMC’s Volatility
• 200-day average: $3.215 (far below current price)
• RSI: 55.3 (neutral, but trending downward)
• MACD: -0.179 (bearish) with a histogram of 0.109 (contraction)
• Bollinger Bands: $4.61–$5.82 (current price near lower band)

TMC’s technicals suggest a bearish bias, with the stock trading near its 200-day average and RSI indicating potential oversold conditions. The Bollinger Bands suggest a possible bounce, but the MACD’s bearish crossover and negative histogram signal caution. For options traders, the TMC20250912P5 (put) and TMC20250912C5.5 (call) stand out. The put has a 56.82% gamma and 0.0283 theta, offering sensitivity to price swings, while the call’s 44.61% gamma and 0.0259 theta balance directional risk. A 5% downside scenario (to $4.895) would yield a put payoff of $0.105 and a call payoff of $0.000, favoring the put. Aggressive bears may consider TMC20250912P5 into a breakdown below $5.00.

Backtest TMC the metals Stock Performance

Act Now: Position for TMC’s Volatility or Sector Rebound
TMC’s 9.12% intraday drop reflects a mix of sector-wide weakness and company-specific uncertainties. While the stock’s technicals hint at a potential bounce near the $4.61 support level, the broader industrial metals sector—led by MP’s 4.10% decline—remains a key watch. Investors should monitor the 52-week low ($0.721) as a critical floor and the $5.52 intraday high for a potential reversal. For now, the TMC20250912P5 put offers a high-leverage (14.27%) bet on further declines, while bulls may wait for a rebound above $5.52 before re-entering. As the sector leader MP struggles, TMC’s deep-sea mining ambitions could either catalyze a rebound or deepen the selloff—watch for clarity in the coming weeks.