Whirlpool Plunges 13.6%—Can This Home Appliance Giant Rebound from the Tariff Tides?

Summary
• Whirlpool (WHR) slashes 2025 earnings guidance to $6–$8/share from $10, amid $3.77B Q2 revenue miss.
• Dividend cut to $3.60/share from $7 as rivals flood U.S. with tariff-avoidance imports.
• Stock trades at 84.595, down 13.6% from $97.91 open, with 200D MA at 100.01.

Whirlpool’s 13.6% intraday freefall reflects a perfect storm of tariff uncertainty, margin compression, and weak consumer demand. The stock’s 84.01–90.55 range underscores extreme volatility as rivals stockpile imports ahead of Trump-era duties. With Bank of America downgrading to 'underperform' and a $70 PT, the bear case is firmly in play.

Dividend Cut and Guidance Slash Trigger Investor Exodus
Whirlpool’s 12.6% drop stems from a dual blow: a 77% dividend cut and a 20% earnings forecast reduction, driven by Asian rivals exploiting pre-tariff import windows. CEO Marc Bitzer acknowledged Q2 was 'impacted by competitors stockpiling Asian imports,' eroding margins as rivals sacrifice short-term profitability to protect market share. Bank of America’s downgrade to 'underperform' and $70 PT—second lowest on Wall Street—cemented the sell-off, with shares now down 25% in 2025. The 84.595 price reflects a 36.3% discount from the 135.49 52W high, signaling acute investor pessimism.

Bear Put Spreads and Short-Term Plays in a Volatile Playbook
• 200-day MA: 100.01 (below) • RSI: 33.06 (oversold) • MACD: 0.92 (bearish divergence) • Bollinger Bands: 90.46–114.15 (84.595 near lower band)

Key levels to watch: 82.5 (support) and 87.5 (resistance). Short-term bias remains bearish as inventory-driven pricing wars persist. The 30D support at 108.15 and 200D support at 76.86 suggest a potential 16% downside to 70.00 if momentum deteriorates further.

Top Put: WHR20250815P85
• Code: WHR20250815P85 • Type: Put • Strike: 85 • Expiry: 2025-08-15 • IV: 35.93% (moderate) • Leverage: 31.52% • Delta: -0.48 • Theta: -0.124 • Gamma: 0.058 • Turnover: 176,807
• IV indicates reasonable premium • Leverage amplifies bearish returns • Gamma ensures sensitivity to price drops • Payoff at 5% move (70.37) = max(0, 85 - 70.37) = $14.63/share
• This contract offers optimal risk/reward for a 10% drop scenario.

Top Put: WHR20250815P87.5
• Code: WHR20250815P87.5 • Type: Put • Strike: 87.5 • Expiry: 2025-08-15 • IV: 37.80% (moderate) • Leverage: 19.79% • Delta: -0.62 • Theta: -0.136 • Gamma: 0.053 • Turnover: 202,828
• Delta offers balanced directional exposure • IV supports stable premium • Gamma ensures price responsiveness • Payoff at 5% move (70.37) = max(0, 87.5 - 70.37) = $17.13/share
• Ideal for capitalizing on mid-single-digit declines while managing time decay.

If 82.5 support breaks, WHR20250815P85 offers high leverage; aggressive bulls may consider WHR20250815C87.5 for a bounce above 87.5.

Backtest Whirlpool Stock Performance
The 14% intraday plunge in WHR has historically led to positive short-to-medium-term gains. The 3-Day win rate is 51.39%, the 10-Day win rate is 48.61%, and the 30-Day win rate is 50.52%. While the immediate response is slightly positive, the strategy's effectiveness decreases as the time horizon increases.

Rebuild or Retreat—Whirlpool at Crossroads as Sector Leaders Diverge
Whirlpool’s 13.6% drop signals a pivotal inflection point, with short-term risks skewed to the downside. The 33.06 RSI and 90.46 Bollinger lower band suggest oversold conditions, but momentum remains bearish until 87.5 resistance is cleared. Investors should monitor inventory trends and Trump’s tariff enforcement timeline, as delayed price hikes could extend margin pressure. Sector leader GE (-0.11%) offers a contrasting narrative, highlighting divergent sector dynamics. Aggressive traders may short WHR20250815P85 into 82.5 support or scale into longs on a 87.5 breakout, but caution is warranted until Q3 earnings clarify the path forward.