Defense stock Axon Enterprise Inc (NASDAQ:AXON) is plummeting today, down 14.1% at $606.37 at last glance. Brushing off record revenue, the Taser maker posted a third-quarter earnings miss due to tariff costs, though CEO Brittany Bagley called it a "one-time adjustment" if tariffs remain as they are. Three analysts lowered their price targets in response, including UBS to $610 from $840.
Should this price action hold, Axon Enterprise stock will suffer its worst single-day percentage loss since February, when it suffered a 16.4% selloff. The shares are also gapping below the 320-day moving average for the first time since October 2022. Year to date, the equity is up 2.4%.
AXON has already seen double its average daily options volume this morning, with 4,677 calls and 3,087 puts exchanged so far. The November 730 put is the most popular, followed by the 720 put in the same series, with new positions opening at the December 700 call. It's also worth noting that the stock is on the short sell restricted (SSR) list.
Options bears are likely cheering the drop, as puts were much more popular than usual coming into today. AXON's 10-day put/call volume ratio of 1.95 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than all other readings from the past year.
