UPS Stock Tanks 15.4% After Earnings Miss and Surprising Amazon Deal, Setting New Lows

UPS (United Parcel Service) is facing a significant downturn today, with shares plunging 15.4% to $113.16 as of the latest update. The stock is experiencing its largest single-day percentage drop in history, following a disappointing earnings report for the fourth quarter. While the company managed to beat earnings expectations, its revenue missed estimates, and a downbeat full-year forecast has fueled investor concerns.

In a surprising move, UPS also announced an agreement with Amazon.com (AMZN) to reduce its delivery services to the e-commerce giant, catching many analysts off guard. The news has sent shockwaves through the market, contributing to the sharp decline in UPS stock, which is now trading at its lowest levels in over four years.

The stock’s steep drop has landed it on the short sell restricted (SSR) list amid heightened volatility. UPS is also facing a 30% deficit year-over-year, further compounding investor unease. The broad selloff follows a broader trend of bearish sentiment surrounding the stock, which has been identified by Schaeffer’s Senior Quantitative Analyst, Rocky White, as one of the worst stocks to own in January.

Trading activity in UPS options has spiked significantly, with 52,000 calls and 38,000 puts exchanged so far today — roughly 10 times its average daily options volume. The most popular contract is the soon-to-expire 1/31 110-strike put, where traders are actively opening new positions, betting on further downside.

Despite today’s heavy losses, there has been a notable shift in options activity over the past 10 weeks. Calls have been far more popular than usual, as reflected by UPS’ 50-day call/put volume ratio of 2.88 at major options exchanges, ranking higher than 90% of similar readings from the past year.

With UPS facing multiple headwinds — including its disappointing earnings report, reduced dealings with Amazon, and ongoing volatility — investors will be closely watching how the stock responds in the coming days and weeks.