Joby Aviation (JOBY) is down about 3% ahead of an earnings release expected in about two weeks. The stock has been trending lower, and sellers remain in control.
Last week, the price dropped to about $9.25 on Thursday, then jumped more than 12% on Friday. Even with that bounce, the broader downtrend is still intact.
The first support level to watch is $9.25, the pivot low from Thursday. If the price falls below $9.25, traders may start looking for the next support area.
The second support level is near $8.11, tied to an earlier gap fill. Below that, a deeper support zone sits near the “Liberation Day” lows around $5.
Joby Aviation is a California transportation company founded in 2009. It is developing all-electric vertical takeoff and landing (eVTOL) aircraft. These aircraft are designed to carry a pilot and several passengers as part of an air taxi service.
Looking back at last year’s analysis, the selling pressure continued much as expected. After a disappointing earnings report in late 2025, the stock could not hold the key $9.25 pivot low. With shares now trading around $7.50, attention has moved to the lower support levels previously identified.
Joby’s Q4 2025 earnings report showed a net loss of $125 million, about 15% worse than expected. That result has weighed on the stock. At the same time, competitor Archer Aviation announced a preliminary order for 100 aircraft from United Airlines, which has raised concerns about competition. This has happened even as Joby has made progress, including completing pre-production flight tests last month.
Now that the stock has broken below the $8.11 gap-fill area, some traders may look at buying put options to target a further drop toward the major $5 support zone. Thirty-day implied volatility is high near 95%, signaling that the market expects large price swings. Buying puts offers defined risk while aiming to benefit from continued downside momentum.
Because options are expensive when volatility is high, a bearish put spread may be a cheaper alternative. For example, a trader could buy a $7 strike put and sell a $5 strike put with the same later expiration. This limits the maximum profit, but it can cut the upfront cost and reduce time decay.
On the other hand, traders who believe support near $5 will hold could consider selling cash-secured puts at a $5 strike or lower. This approach collects premium and takes advantage of high implied volatility. If the stock closes below the strike at expiration, the trader may be assigned shares at a lower effective cost basis.
here to set up a live account on VT Markets now
