XP Stock Plunges 10.25% Amid Swirling Investor Concerns and Market Volatility

Summary
• XP Inc. (NASDAQ: XP) trades at $17.815, down 10.25% from its $19.85 open on December 5, 2025
• Intraday range spans $17.66 to $20.01, reflecting sharp volatility amid strategic partnership speculation
• 52-week high of $20.64 and low of $10.82 highlight extended price swings
• Recent financial reports show $7.42 billion revenue but declining five-year growth, raising questions about sustainability

XP Inc. is experiencing a dramatic intraday selloff, with its stock price collapsing 10.25% as of 7:42 PM EST. The sharp decline follows swirling rumors of strategic collaborations and shifting economic sentiment in the finance sector. With a 52-week high of $20.64 and a dynamic PE ratio of 9.55, the stock’s current trajectory underscores heightened investor anxiety. The day’s trading range—from $17.66 to $20.01—reflects intense market pressure, as traders grapple with uncertainty over XP’s financial stability and growth potential.

Strategic Partnership Rumors and Economic Sentiment Shifts Drive Sharp Decline
XP’s intraday selloff is fueled by a combination of speculative selling and macroeconomic headwinds. Recent news of potential collaborations has sparked volatility, with investors reassessing the company’s strategic positioning. The stock opened at $19.85, surged to $20.01, then collapsed to $17.66 as concerns over financial stability and sector-wide economic shifts took hold. Analysts note that XP’s 52-week high of $20.64 and its 9.55 dynamic PE ratio suggest undervaluation, yet the market is reacting to broader uncertainties, including regulatory scrutiny and competitive pressures in the fintech space. The lack of clarity around XP’s long-term growth plans has amplified selling pressure, particularly as short-term traders exit positions ahead of an anticipated earnings report.

Diversified Financials Sector Mixed as XP Leads Decline
The Diversified Financials sector remains fragmented, with XP’s 10.25% drop contrasting against resilient peers like The Charles Schwab Corporation (SCHW), which fell 0.305%. WisdomTree (WT) and Raymond James (RJF) have shown stronger earnings growth and balance sheet strength, outperforming XP’s volatile trajectory. While XP’s strategic pivot toward partnerships and digital finance has drawn attention, its declining five-year revenue and elevated debt management concerns have left it lagging behind sector leaders. The broader sector’s 10.9% six-month return, compared to the S&P 500’s 15.4%, highlights structural challenges in capitalizing on fiscal and monetary policy shifts.

Options and ETF Strategies for Navigating XP’s Volatility
• MACD: 0.424 (bullish divergence), Signal Line: 0.285, Histogram: 0.139 (momentum waning)
• RSI: 55.51 (neutral), Bollinger Bands: Upper $20.45, Middle $18.77, Lower $17.09 (price near lower band)
• 200D MA: $17.27 (price above), 30D MA: $18.50 (bearish crossover likely)

XP’s technical profile suggests a bearish near-term outlook, with key support at $17.66 and resistance at $18.77. Traders should monitor the 200-day moving average ($17.27) as a critical level for trend confirmation. The stock’s high implied volatility (IV) and moderate RSI position it as a candidate for short-term options strategies. Two top options from the provided chain stand out:

• XP20251212P18 (Put, $18 strike, 12-Dec expiration):
- IV: 26.48% (moderate), Leverage Ratio: 66.74%, Delta: -0.4788 (deep in-the-money), Theta: -0.0077 (low time decay), Gamma: 0.5636 (high sensitivity)
- Payoff Calculation: Under a 5% downside scenario (price at $16.92), payoff = max(0, $18 - $16.92) = $1.08 per share. This contract offers strong downside protection with high leverage, ideal for aggressive bearish bets.

• XP20251219C19 (Call, $19 strike, 19-Dec expiration):
- IV: 62.75% (elevated), Leverage Ratio: 34.00%, Delta: 0.3626 (moderate), Theta: -0.0306 (high time decay), Gamma: 0.1635 (moderate sensitivity)
- Payoff Calculation: Under a 5% downside scenario (price at $16.92), payoff = max(0, $16.92 - $19) = $0. This contract is a high-risk, high-reward play for traders anticipating a rebound above $19.00.

Given XP’s volatility and key support/resistance levels, a bearish bias is warranted. Aggressive bulls may consider XP20251219C19 into a bounce above $19.00, while cautious bears should target XP20251212P18 for downside protection.

Backtest XP Stock Performance
To run an event-based back-test we first need a precise list of the event dates – i.e. every trading day since 1 Jan 2022 on which XP Inc. (ticker XP) suffered an intraday plunge of at least 10 %.Because the data service only provides daily OHLC (open / high / low / close) bars, the closest practical proxy is:“Low price of the day ≤ 0.9 × previous‐day close.”Before I pull the raw price series and generate the qualifying dates, please confirm that:1. You’re comfortable using the rule above as the definition of a “-10 % intraday plunge”. 2. You want the analysis to cover 1 Jan 2022 through today. 3. No special risk-control overlay (e.g. stop-loss, take-profit, max holding days) is required beyond the default “buy at next-day open, hold for N days” logic that the event back-test engine applies.Let me know if any of these assumptions should be modified, and I’ll proceed with the data pull and back-test.

XP Faces Critical Juncture: Watch for $17.66 Support and Sector Catalysts
XP’s 10.25% intraday drop signals a pivotal moment for the stock, with $17.66 acting as a critical support level. The broader Diversified Financials sector remains mixed, with sector leader The Charles Schwab Corporation (SCHW) down 0.305%, underscoring systemic challenges. Traders should prioritize monitoring XP’s ability to hold above $17.66 and retest the 200-day moving average ($17.27) for trend confirmation. A breakdown below $17.66 could trigger further selling, while a rebound above $18.77 may attract short-term buyers. Aggressive bulls may consider XP20251219C19 into a bounce above $19.00, while cautious bears should target XP20251212P18 for downside protection. Watch for catalysts in strategic partnerships and earnings reports to determine the next directional move.