Verizon's 2.86% Plunge: Earnings Beat, Subscriber Woes, and a New CEO's Bold Vision Collide

Summary
• Verizon's Q3 earnings beat estimates but revenue fell short, sparking a 2.86% intraday drop.
• New CEO Dan Schulman's aggressive cost-cutting promises clash with subscriber losses in a fiercely competitive market.
• Options volatility surges as traders bet on a post-earnings rebound or further decline.

Verizon's stock plunged to a nine-month low amid mixed earnings results and leadership upheaval. The telecom giant's shares opened at $40.61 but slumped to $38.96 intraday, reflecting investor skepticism over Schulman's transformative agenda and ongoing subscriber attrition. With the sector under pressure from aggressive 5G pricing wars, the stock's technicals and options activity signal a pivotal inflection point.

Earnings Beat and Subscriber Losses Fuel Volatility Amid Leadership Transition
Verizon's stock collapsed 2.86% despite beating earnings estimates, driven by a 7,000 postpaid phone subscriber loss in Q3 and revenue falling $420M below expectations. The abrupt CEO transition—replacing Hans Vestberg with PayPal's Dan Schulman—introduced uncertainty about execution risks. Schulman's pledge to 'redefine Verizon’s trajectory' through aggressive cost cuts and customer-centric reforms clashed with immediate subscriber attrition in a market where T-Mobile added 841,000 postpaid users. The stock's sharp decline also reflected skepticism about Schulman's ability to reverse declining margins amid Apple's pricier iPhone 17 models and intensified phone subsidy wars.

Wireless Sector Turbulence: Verizon's Slide Mirrors T-Mobile's Struggles
The Wireless Telecommunication Services sector remains volatile as T-Mobile (TMUS) fell 1.67% intraday, reflecting broader pricing pressures. Verizon's 2.86% drop aligned with sector trends, as carriers grapple with $17B SpaceX spectrum deals and satellite broadband competition. While T-Mobile's standalone 5G rollout and cellular Starlink integration offer differentiation, Verizon's subscriber losses and Schulman's unproven telecom leadership amplify sector-wide concerns about margin compression. The sector's 52W high of $47.35 for Verizon underscores the challenge of sustaining growth in a saturated market.

Options Playbook: Capitalizing on Volatility with VZ20251107P39 and VZ20251107P38.5
• MACD: -0.927 (bearish divergence from signal line)
• RSI: 45.39 (oversold territory but below 50)
• Bollinger Bands: 37.89 (lower band) to 43.15 (upper band)
• 200D MA: $42.67 (price at 39.06, bearish divergence)

Verizon's technicals suggest a short-term bearish bias with support at $37.89 and resistance at $40.52. The stock's 52W low of $37.59 and 8.33 P/E ratio indicate undervaluation, but near-term volatility remains high. Two options stand out for bearish exposure:

• VZ20251107P39: Put option with 17.21% IV, 92.91% leverage ratio, delta -0.494, theta -0.0749, gamma 0.3776. High gamma ensures sensitivity to price swings, while moderate delta balances directional risk. Projected 5% downside to $37.11 yields $1.89 payoff (max profit if ST < $39).
• VZ20251107P38.5: Put option with 18.85% IV, 156.10% leverage ratio, delta -0.326, theta -0.0572, gamma 0.3115. Strong liquidity (6,081 turnover) and high gamma make it ideal for short-term bearish bets. Projected 5% downside yields $2.45 payoff (max profit if ST < $38.5).

Aggressive bears should consider VZ20251107P39 into a breakdown below $37.89, while VZ20251107P38.5 offers leverage for a $38.50 pivot. Watch for a $37.58 52W low break to confirm bearish momentum.

Backtest Verizon Stock Performance
Here is the completed event-study back-test you requested. (The interactive chart is embedded to the right of the chat window—please scroll if it is not immediately visible.)Key findings (high-level):• 21 qualifying drops of ≥ 3 % occurred from 2022-01-01 to 2025-10-30. • The stock tended to rebound: average excess return turned positive from day 6 onward, with the 15-day holding window showing a mean gain of +2.5 % versus –0.23 % for the benchmark. • Win-rate exceeded 70 % on many windows between the 6-day and 27-day horizons. • Statistical significance (t-test) appears strongest around days 6–17.Assumptions & notes:1. “Intraday plunge” was proxied with daily close-to-close moves because tick-level data were not available; if minute-bar data become accessible, the same workflow can be rerun on true intraday lows. 2. Events occurring within 30 days of each other were treated independently (no de-duplication) in line with standard event-study practice.Feel free to explore the interactive module and let me know if you’d like to refine parameters—e.g., change the return horizon, add risk controls, or rerun on alternative thresholds.

Verizon at Inflection Point: Watch $37.58 Break or T-Mobile's 1.67% Slide for Sector Clues
Verizon's 2.86% drop reflects a critical juncture between Schulman's transformative vision and immediate subscriber losses. Technicals favor a short-term bearish bias with key support at $37.58 and resistance at $40.52. The stock's 8.33 P/E and 52W low proximity suggest value, but near-term volatility hinges on Schulman's execution. Investors should monitor T-Mobile's 1.67% intraday decline as a sector barometer. Aggressive bulls may consider VZ20251107C40.5 if the stock rebounds above $40.52, while bears should target VZ20251107P39 for a $37.58 breakdown. Immediate action: Watch for a $37.58 break or T-Mobile's 1.67% slide to confirm sector direction.