Shares of Vertiv Holdings LLC (VRT), a provider of critical digital infrastructure and services for data centers, plummeted 5.17% on Tuesday, January 7th, 2025, during the intraday trading session.

The stock's decline was accompanied by heavy bearish trading in Vertiv's options, with put option volume more than double the expected level. The most actively traded were the January 2025 $131 and $120 puts, indicating traders were betting on further downside for the stock.

While Vertiv is well-positioned in the growing data center market, as highlighted in a Zacks Investment Research report, the heavy bearish options flow suggests investors were bracing for negative news or downgrades in the near future.