Velo3D Plummets 20.8% Amid Leadership Shakeup and Regulatory Woes – What’s Next for the 3D Printing Giant?

Summary
• Velo3D’s stock (VELO) slumps to $5.54, down 20.8% from $7.00, hitting an intraday low of $5.065
• CEO Benny Buller resigns, replaced by Brad Kreger, as company navigates $18M funding and NYSE compliance risks
• Partnership with iRocket and Dyndrite integration highlight strategic bets amid financial turbulence
• Turnover surges to 1.01M shares, with 52W range of $2.81–$8.29 and a dynamic PE of -1.41

Velo3D’s dramatic intraday plunge reflects a confluence of leadership upheaval, regulatory scrutiny, and capital-raising efforts. The stock’s 20.8% drop to $5.54—its lowest since October 2023—underscores investor anxiety over the company’s financial stability and strategic direction. With a $18M registered direct offering and a non-compliance notice from the NYSE looming, the stock’s volatility signals a critical juncture for the 3D printing innovator.

Leadership Transition and Capital Struggles Trigger Sell-Off
Velo3D’s 20.8% decline stems from a perfect storm of governance changes and financial distress. The resignation of CEO Benny Buller, who founded the company in 2016, and his replacement by interim CEO Brad Kreger has raised questions about operational continuity. Simultaneously, the company’s $18M capital raise—selling 36M shares at $0.50—signals desperation to stabilize liquidity. Compounding these issues, the NYSE’s non-compliance notice for failing to maintain a $1.00 minimum closing price has intensified fears of delisting. These developments, coupled with a recent $25M cash payment to noteholders, have eroded investor confidence, triggering a flight to safety.

Aerospace Sector Volatility as Velo3D Dives with LMT Lagging
The aerospace and defense sector, where Velo3D’s iRocket partnership operates, has seen mixed performance. While Velo3D’s 20.8% drop is extreme, sector leader Lockheed Martin (LMT) fell 1.11% intraday, reflecting broader market caution. However, Velo3D’s decline is more acute due to its unique challenges: regulatory risks, leadership instability, and a capital-intensive business model. Unlike LMT’s stable defense contracts, Velo3D’s reliance on speculative growth and partnerships (e.g., SpaceX licensing) amplifies its vulnerability to market sentiment shifts.

Bearish Setup and High-Leverage Options for Velo3D’s Turbulent Outlook
• Technical Indicators: RSI at 69.96 (overbought), MACD 0.76 (bullish), Bollinger Bands (Upper: $7.32, Lower: $1.88), 30D MA at $4.12 (below current price)
• ETF/Options: No leveraged ETFs available; focus on options

Velo3D’s technicals suggest a bearish reversal. The RSI near overbought territory and a 30D MA at $4.12 indicate exhaustion after a recent rebound. Key support levels at $3.13–$3.21 (30D range) and $1.88 (Bollinger Lower) are critical for short-term direction. The stock’s 20.8% drop today has created a volatile environment, favoring options strategies with high leverage and gamma sensitivity.

Top Options:
• VELO20251219P5 (Put Option)
- Strike: $5.00, Expiry: 2025-12-19, IV: 12.68%, Delta: -0.0435, Theta: -0.000053, Gamma: 0.3342, Turnover: 0
- IV: Low volatility (12.68%) suggests limited near-term price swings
- Delta: Slight bearish bias (-0.0435) for a 5% downside scenario
- Gamma: High sensitivity (0.3342) to price movements
- Payoff: $0.54 (max(0, $5.00 - $5.26))
- Why: High gamma and low IV make this put ideal for a controlled downside bet.

• VELO20260116C5 (Call Option)
- Strike: $5.00, Expiry: 2026-01-16, IV: 103.50%, Delta: 0.6660, Theta: -0.006785, Gamma: 0.1330, Turnover: 0
- IV: Extremely high (103.50%) reflects market uncertainty
- Delta: Strong bullish bias (0.6660) for a 5% upside scenario
- Gamma: Moderate sensitivity (0.1330) to price swings
- Payoff: $0.26 (max(0, $5.26 - $5.00))
- Why: High IV and delta offer asymmetric upside potential if the stock rebounds.

Trading Insight: Aggressive bears should prioritize the December put (VELO20251219P5) for a 5% downside scenario, while bulls might consider the January call (VELO20260116C5) if the stock breaks above $5.54. However, low turnover in both contracts suggests liquidity risks—traders should monitor order books closely.

Backtest Velo3D Stock Performance
The back-test is complete. Key assumptions that were auto-filled for you:• Price series: we used daily close prices (default when no price-type is specified). • Risk control: for realism we imposed (a) 25 % take-profit, (b) 20 % stop-loss, and (c) a 30-day maximum holding period. These are customary guard-rails for short-term “event-driven rebound” strategies; feel free to ask if you’d like different settings. • Entry rule: every day from 2022-01-01 to 2025-10-22 on which VELO’s daily % change ≤ –21 % (our proxy for a –21 % intraday plunge). • Exit rule: first of (i) TP hit, (ii) SL hit, or (iii) 30 calendar days after entry.Open the interactive panel below to review full performance, equity curve, and trade log.

Velo3D at Crossroads: Watch for $3.13 Support and Sector Catalysts
Velo3D’s 20.8% drop has exposed its precarious financial position, but the stock’s technicals and options activity hint at a potential rebound or further decline. The $3.13–$3.21 support range and $1.88 lower Bollinger Band are critical for near-term direction. Meanwhile, the aerospace sector’s mixed performance—led by LMT’s -1.11%—suggests broader market caution. Investors should monitor the $18M capital raise’s execution, the NYSE compliance timeline, and iRocket’s SPAC progress. For now, the bearish setup favors short-term options strategies, but long-term outcomes depend on Velo3D’s ability to stabilize operations and regain investor trust.