SNPS had the absolute worst day in years. -36% drop. Going down from $600+ to below $400 at the time of writing this post. The volume exploded to 11.7M shares (10× avg). This feels like a classic capitulation candle.
Quick Background: Synopsys (SNPS) is a semiconductor design and software company. It basically builds the software and IP that makes chip design possible.
So the question is this? Why did it drop so hard?
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Q3 revenue ($1.74B vs. $1.77B est.) and EPS misses,
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U.S. export restrictions on China
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The guidance for the next quarter’s revenue is above expectations, suggesting the weakness may be a one off.
Quick Look Into the Options Flow. Early on there was heavy $400 put buying suggesting panic hedges later there was a shift toward $420-450 calls for September.
Historically, SNPS rallies 10–20% in the weeks after flushes like this.
The Play: Long entry: Wait for stabilization in the $390–400 range . Stop loss: $385 (below capitulation low).
Targets: $440 (gap fill) –> $465 (next supply zone) –> $480 (extended bounce)
This looks like sentiment overshooting reality. Fundamentals aren’t broken. Just a one off revenue hit. Options flow + technical base + panic volume suggests that we are due for a sharp mean reversion bounce.
Date Posted: September 10th, 2025. 1:03 PM EST. Price at the time of writing this post is $387.46
Please do your own DD. This is not Financial Advice.
Synopsys (SNPS) ($387.46) just had the worst day in years plunging 36%. Options Analysis
byu/retroviber inoptions
Posted by retroviber
6 Comments
Sold some puts.
Already made profits by closing some and waiting for next bounce.
Thanks for the info. My only correction is for accuracy: You posted this during Daylight Saving Time, so it’s EDT, not EST
The earnings were pretty bad. Cut in half. You think it will bounce from that?
Wow, I was trading this one on the way up and made some impressive profits, but was kicking myself for getting out around $560, looks like I may have another shot on this one.
>Historically, SNPS rallies 10–20% in the weeks after flushes like this.
It never slipped like this 🙁
>***Wait*** for stabilization
I think this is the first time I’ve seen a post that suggests patience rather than catching a falling knife.
I always wait a minimum of 2 days after a flush like this to consider getting involved.