Down 44% in a day? Well, at least if you had a stop orderu2026 uh, nope. Thatu2019s the message here. Stop orders will not save you when a stock plunges overnight. In fact, for decades Iu2019ve been trying to say the same thing, to prevent traders and investors from getting burned.u00a0
When you set a stop-loss order, unless it is a day-trade situation or a small down move in a stock that takes it right under your stop price level, you canu2019t rely on the order to help you. Case in point is Fiserv (FI), which is not a small stock. In fact, before Wednesdayu2019s hot mess, it was one of the 150 biggest stocks in the U.S., well inside the top one-third of the S&P 500 Index ($SPX). Oops.
This is what it looked like up close. The stock closes one day at $128, and opens the next day at around half that value. If only it had been a 2:1 stock split. This is the issue Iu2019ve always had with stop-loss orders. They get you out NOT at the price youu2019ve set, but where the market opens. Yes, you can place a stop-limit order, but that just means youu2019d still hold FI, down 44% in a day. Thatu2019s little consolation to me.u00a0
The crash in FI knocked it all the way back to its early 2018 level. Think about that.u00a0
This article is less about FI than it is a warning for traders. Fiserv was a stock selling at a reasonable multiple, with a history of market-like volatility. It is in a very competitive industry, but is a prominent business in its field. It is a fintech stock that even has its hands in crypto.
FI Is a Symptom of a Much Bigger Stock Market Problemu00a0
But none of that mattered on Wednesday. This is the stock market in 2025. And we should get used to it. Stocks rise and fall faster and stronger than many are used to. It is a very opportunistic market, but also a very dangerous one.
It is too late to consider using a collar to protect yourself from the carnage in Fiserv. But it is exactly why an option collar is such a viable strategy for so many stocks. Or at least a protective or u201cmarriedu201d put option strategy.u00a0
The stock market of today is not about u201cbuying great companies and holding them.u201d Unless that company is a virtual monopoly, or part of the favored network of artificial intelligence leaders. Risk management is more important in investing than at any time Iu2019ve seen in 40 years in the markets.u00a0
If it could happen to FI, it could happen to nearly any stock.u00a0
n
n On the date of publication,nn Rob Isbittsnn did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes.n n For more information please view the Barchart Disclosure Policynn here.n“,”symbols”:[{“symbol”:”FI”,”symbolName”:”Fiserv Inc”,”symbolType”:1,”lastPrice”:”65.19″,”priceChange”:”-5.41″,”percentChange”:”-7.66%”},{“symbol”:”$SPX”,”symbolName”:”S&P 500 Index”,”symbolType”:9,”lastPrice”:”6,822.34″,”priceChange”:”-68.25″,”percentChange”:”-0.99%”}],”related”:[{“id”:”35811187″,”title”:”PayPal Is Paying Its First-Ever Dividend. Should You Snap Up PYPL Stock Now?”,”slug”:”paypal-is-paying-its-first-ever-dividend-should-you-snap-up-pypl-stock-now”,”feedName”:”Barchart”,”published”:”Thu Oct 30, 6:30PM CDT”,”categories”:[“STK.EVNT.DIV”,”STK.EQY”]},{“id”:”35806858″,”title”:”Use This Treasury Strategy to Invest in US Bonds for Steady Income”,”slug”:”use-this-treasury-strategy-to-invest-in-us-bonds-for-steady-income”,”feedName”:”Barchart”,”published”:”Thu Oct 30, 3:11PM CDT”,”categories”:[“FUT.FIN”,”ECO.CBANK”,”STK.EQY”]},{“id”:”35804880″,”title”:”1 Fintech Stock Under $400 to Buy and Hold Forever”,”slug”:”1-fintech-stock-under-400-to-buy-and-hold-forever”,”feedName”:”Barchart”,”published”:”Thu Oct 30, 2:09PM CDT”,”categories”:[“STK.EQY”,”FUT.CRYPTO”]},{“id”:”35804741″,”title”:”Should We Be Cautious with Precious Metals?”,”slug”:”should-we-be-cautious-with-precious-metals”,”feedName”:”Barchart”,”published”:”Thu Oct 30, 2:00PM CDT”,”categories”:[“FUT.MTL”,”FUT.MTL.PRECIOUS”,”STK.IND.MAT.MTLMIN”,”FUT.MTL.SVR”,”FUT.MTL.GLD”]},{“id”:”35804510″,”title”:”‘Our GPUs Are Everywhereu2019 According to CEO Jensen Huang as Nvidia Doubles Down on AI, Quantum, and 6G”,”slug”:”our-gpus-are-everywhere-according-to-ceo-jensen-huang-as-nvidia-doubles-down-on-ai-quantum-and-6g”,”feedName”:”Barchart”,”published”:”Thu Oct 30, 1:50PM CDT”,”categories”:[“STK.EQY”]},{“id”:”35804125″,”title”:”Chipotle Stock Is Plunging. Should You Buy the Dip Today?”,”slug”:”chipotle-stock-is-plunging-should-you-buy-the-dip-today”,”feedName”:”Barchart”,”published”:”Thu Oct 30, 1:27PM CDT”,”categories”:[“STK.EQY”]},{“id”:”35803765″,”title”:”Welcome to the $4 Trillion Market Cap, Microsoft! Are There More Gains for MSFT Stock in Store?”,”slug”:”welcome-to-the-4-trillion-market-cap-microsoft-are-there-more-gains-for-msft-stock-in-store”,”feedName”:”Barchart”,”published”:”Thu Oct 30, 1:08PM CDT”,”categories”:[“STK.EQY”]},{“id”:”35803153″,”title”:”Dear Spotify Stock Fans, Mark Your Calendars for November 4″,”slug”:”dear-spotify-stock-fans-mark-your-calendars-for-november-4″,”feedName”:”Barchart”,”published”:”Thu Oct 30, 12:52PM CDT”,”categories”:[“STK.EQY”]}],”sourceId”:”9391300″,”media”:”text”,”thumbnail”:{“url”:”https://media.barchart.com/contributors-admin/common-images/images/Stocks%2C%20Markets%2C%20%26%20Global%20Economy/Charts%2C%20tickers%2C%20traders/Down%20market%20by%20Artit%20Wongpradu%20via%20Shutterstock.jpg”,”width”:150,”height”:90,”caption”:”Down market by Artit Wongpradu via Shutterstock”},”summary”:”If it could happen to Fiserv, it could happen to almost any stock.”,”canonicalUrl”:”https://www.barchart.com/story/news/35804923/fiserv-stocks-44-single-day-plunge-proves-that-stop-orders-dont-work-but-this-option-strategy-could-have-prevented-the-carnage”,”slug”:”fiserv-stocks-44-single-day-plunge-proves-that-stop-orders-dont-work-but-this-option-strategy-could-have-prevented-the-carnage”,”sourceFeed”:”CONT2″,”categories”:[“STK.TRD”,”STK.EQY”,”STK.OPT”,”FUT.OPT”],”meta”:”N/A”,”authorBadge”:null,”raw”:{“id”:”35804923″,”title”:”Fiserv Stocku2019s 44% Single-Day Plunge Proves That Stop Orders Donu2019t Work, But This Option Strategy Could Have Prevented the Carnage”,”author”:”Rob Isbitts”,”authorUrl”:”https://www.barchart.com/news/authors/448/rob-isbitts”,”authorImage”:”https://media.barchart.com/news/authors/448/avatar-HWgY0E87btp4EZrS.png”,”authorType”:”author”,”feed”:”EXCLSV”,”feedName”:”Barchart”,”feedUrl”:”https://www.barchart.com”,”published”:1761851631,”publishedTime”:”2025-10-30 19:13:51″,”updated”:”2025-10-30 19:13:59 +0000″,”image”:{“url”:”https://media.barchart.com/contributors-admin/common-images/images/Stocks%2C%20Markets%2C%20%26%20Global%20Economy/Charts%2C%20tickers%2C%20traders/Down%20market%20by%20Artit%20Wongpradu%20via%20Shutterstock.jpg”,”width”:150,”height”:90,”caption”:”Down market by Artit Wongpradu via Shutterstock”},”content”:”
u201cYouu2019ve been Fi-served.u201d
Down 44% in a day? Well, at least if you had a stop orderu2026 uh, nope. Thatu2019s the message here. Stop orders will not save you when a stock plunges overnight. In fact, for decades Iu2019ve been trying to say the same thing, to prevent traders and investors from getting burned.u00a0
When you set a stop-loss order, unless it is a day-trade situation or a small down move in a stock that takes it right under your stop price level, you canu2019t rely on the order to help you. Case in point is Fiserv (FI), which is not a small stock. In fact, before Wednesdayu2019s hot mess, it was one of the 150 biggest stocks in the U.S., well inside the top one-third of the S&P 500 Index ($SPX). Oops.
This is what it looked like up close. The stock closes one day at $128, and opens the next day at around half that value. If only it had been a 2:1 stock split. This is the issue Iu2019ve always had with stop-loss orders. They get you out NOT at the price youu2019ve set, but where the market opens. Yes, you can place a stop-limit order, but that just means youu2019d still hold FI, down 44% in a day. Thatu2019s little consolation to me.u00a0
The crash in FI knocked it all the way back to its early 2018 level. Think about that.u00a0
This article is less about FI than it is a warning for traders. Fiserv was a stock selling at a reasonable multiple, with a history of market-like volatility. It is in a very competitive industry, but is a prominent business in its field. It is a fintech stock that even has its hands in crypto.
FI Is a Symptom of a Much Bigger Stock Market Problemu00a0
But none of that mattered on Wednesday. This is the stock market in 2025. And we should get used to it. Stocks rise and fall faster and stronger than many are used to. It is a very opportunistic market, but also a very dangerous one.
It is too late to consider using a collar to protect yourself from the carnage in Fiserv. But it is exactly why an option collar is such a viable strategy for so many stocks. Or at least a protective or u201cmarriedu201d put option strategy.u00a0
The stock market of today is not about u201cbuying great companies and holding them.u201d Unless that company is a virtual monopoly, or part of the favored network of artificial intelligence leaders. Risk management is more important in investing than at any time Iu2019ve seen in 40 years in the markets.u00a0
If it could happen to FI, it could happen to nearly any stock.u00a0
n
n On the date of publication,nn Rob Isbittsnn did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes.n n For more information please view the Barchart Disclosure Policynn here.n“,”symbols”:[“FI”,”$SPX”],”related”:[{“id”:”35811187″,”title”:”PayPal Is Paying Its First-Ever Dividend. Should You Snap Up PYPL Stock Now?”,”slug”:”paypal-is-paying-its-first-ever-dividend-should-you-snap-up-pypl-stock-now”,”feedName”:”Barchart”,”published”:”Thu Oct 30, 6:30PM CDT”,”categories”:[“STK.EVNT.DIV”,”STK.EQY”]},{“id”:”35806858″,”title”:”Use This Treasury Strategy to Invest in US Bonds for Steady Income”,”slug”:”use-this-treasury-strategy-to-invest-in-us-bonds-for-steady-income”,”feedName”:”Barchart”,”published”:”Thu Oct 30, 3:11PM CDT”,”categories”:[“FUT.FIN”,”ECO.CBANK”,”STK.EQY”]},{“id”:”35804880″,”title”:”1 Fintech Stock Under $400 to Buy and Hold Forever”,”slug”:”1-fintech-stock-under-400-to-buy-and-hold-forever”,”feedName”:”Barchart”,”published”:”Thu Oct 30, 2:09PM CDT”,”categories”:[“STK.EQY”,”FUT.CRYPTO”]},{“id”:”35804741″,”title”:”Should We Be Cautious with Precious Metals?”,”slug”:”should-we-be-cautious-with-precious-metals”,”feedName”:”Barchart”,”published”:”Thu Oct 30, 2:00PM CDT”,”categories”:[“FUT.MTL”,”FUT.MTL.PRECIOUS”,”STK.IND.MAT.MTLMIN”,”FUT.MTL.SVR”,”FUT.MTL.GLD”]},{“id”:”35804510″,”title”:”‘Our GPUs Are Everywhereu2019 According to CEO Jensen Huang as Nvidia Doubles Down on AI, Quantum, and 6G”,”slug”:”our-gpus-are-everywhere-according-to-ceo-jensen-huang-as-nvidia-doubles-down-on-ai-quantum-and-6g”,”feedName”:”Barchart”,”published”:”Thu Oct 30, 1:50PM CDT”,”categories”:[“STK.EQY”]},{“id”:”35804125″,”title”:”Chipotle Stock Is Plunging. Should You Buy the Dip Today?”,”slug”:”chipotle-stock-is-plunging-should-you-buy-the-dip-today”,”feedName”:”Barchart”,”published”:”Thu Oct 30, 1:27PM CDT”,”categories”:[“STK.EQY”]},{“id”:”35803765″,”title”:”Welcome to the $4 Trillion Market Cap, Microsoft! Are There More Gains for MSFT Stock in Store?”,”slug”:”welcome-to-the-4-trillion-market-cap-microsoft-are-there-more-gains-for-msft-stock-in-store”,”feedName”:”Barchart”,”published”:”Thu Oct 30, 1:08PM CDT”,”categories”:[“STK.EQY”]},{“id”:”35803153″,”title”:”Dear Spotify Stock Fans, Mark Your Calendars for November 4″,”slug”:”dear-spotify-stock-fans-mark-your-calendars-for-november-4″,”feedName”:”Barchart”,”published”:”Thu Oct 30, 12:52PM CDT”,”categories”:[“STK.EQY”]}],”sourceId”:”9391300″,”media”:”text”,”thumbnail”:{“url”:”https://media.barchart.com/contributors-admin/common-images/images/Stocks%2C%20Markets%2C%20%26%20Global%20Economy/Charts%2C%20tickers%2C%20traders/Down%20market%20by%20Artit%20Wongpradu%20via%20Shutterstock.jpg”,”width”:150,”height”:90,”caption”:”Down market by Artit Wongpradu via Shutterstock”},”summary”:”If it could happen to Fiserv, it could happen to almost any stock.”,”canonicalUrl”:”https://www.barchart.com/story/news/35804923/fiserv-stocks-44-single-day-plunge-proves-that-stop-orders-dont-work-but-this-option-strategy-could-have-prevented-the-carnage”,”slug”:”fiserv-stocks-44-single-day-plunge-proves-that-stop-orders-dont-work-but-this-option-strategy-could-have-prevented-the-carnage”,”sourceFeed”:”CONT2″,”categories”:[“STK.TRD”,”STK.EQY”,”STK.OPT”,”FUT.OPT”],”meta”:null,”authorBadge”:null},”barchartAuthor”:{“id”:0,”following”:false},”contributorsServiceCategories”:[“Options”,”Equities/Stocks”],”isBarchartAuthor”:true,”isContributorOrSyndicated”:false,”isPressRelease”:false,”isSponsoredContent”:false,”shouldLoadMoreNews”:true,”displayCaption”:true,”isFuturesArticle”:false,”shouldShowPlus500Ad”:false,”shareLink”:”https://www.barchart.com/share/news/35804923/fiserv-stocks-44-single-day-plunge-proves-that-stop-orders-dont-work-but-this-option-strategy-could-have-prevented-the-carnage”}” data-ng-controller=”NewsItem.newsItemCtrl as vm” data-ng-init=”shareLink=’https://www.barchart.com/share/news/35804923/fiserv-stocks-44-single-day-plunge-proves-that-stop-orders-dont-work-but-this-option-strategy-could-have-prevented-the-carnage'”>
Rob Isbitts – Barchart – Thu Oct 30, 2:13PM CDT Columnist
All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here
Down market by Artit Wongpradu via Shutterstock
“You’ve been Fi-served.”
Down 44% in a day? Well, at least if you had a stop order… uh, nope. That’s the message here. Stop orders will not save you when a stock plunges overnight. In fact, for decades I’ve been trying to say the same thing, to prevent traders and investors from getting burned.
When you set a stop-loss order, unless it is a day-trade situation or a small down move in a stock that takes it right under your stop price level, you can’t rely on the order to help you. Case in point is Fiserv (FI), which is not a small stock. In fact, before Wednesday’s hot mess, it was one of the 150 biggest stocks in the U.S., well inside the top one-third of the S&P 500 Index ($SPX). Oops.
This is what it looked like up close. The stock closes one day at $128, and opens the next day at around half that value. If only it had been a 2:1 stock split. This is the issue I’ve always had with stop-loss orders. They get you out NOT at the price you’ve set, but where the market opens. Yes, you can place a stop-limit order, but that just means you’d still hold FI, down 44% in a day. That’s little consolation to me.
The crash in FI knocked it all the way back to its early 2018 level. Think about that.
This article is less about FI than it is a warning for traders. Fiserv was a stock selling at a reasonable multiple, with a history of market-like volatility. It is in a very competitive industry, but is a prominent business in its field. It is a fintech stock that even has its hands in crypto.
FI Is a Symptom of a Much Bigger Stock Market Problem
But none of that mattered on Wednesday. This is the stock market in 2025. And we should get used to it. Stocks rise and fall faster and stronger than many are used to. It is a very opportunistic market, but also a very dangerous one.
It is too late to consider using a collar to protect yourself from the carnage in Fiserv. But it is exactly why an option collar is such a viable strategy for so many stocks. Or at least a protective or “married” put option strategy.
The stock market of today is not about “buying great companies and holding them.” Unless that company is a virtual monopoly, or part of the favored network of artificial intelligence leaders. Risk management is more important in investing than at any time I’ve seen in 40 years in the markets.
If it could happen to FI, it could happen to nearly any stock.
On the date of publication, Rob Isbitts did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
