What is the expected price volatility immediately following the delisting and suspension?

Expected volatility: The moment the NY E suspends FOX O’s Class A shares and the NYSE begins delisting proceedings, the stock will experience a sharp, short‑run spike in price volatility. The suspension removes the primary market’s depth and price‑discovery mechanisms, while the imminent shift to the over‑the‑counter (OTC) arena leaves the security with a very thin order book, wide bid‑ask spreads and a limited pool of market‑makers. In practice, this transition typically generates intraday price swings of 30‑50 % (or more) as traders scramble to re‑price the security in a less‑regulated, lower‑liquidity environment.

Drivers of the volatility surge

1. Liquidity shock: NYSE American’s market‑maker network disappears; OTC desks will post quotes at a premium to compensate for the heightened risk, creating a volatile “price‑finding” period.
2. Regulatory uncertainty: Section 1003(f)(v) delisting is triggered by the breach of the $0.10 minimum price, signaling possible continued compliance issues, which fuels speculative trading and rapid price swings.
3. Technical break: The price breach of the $0.10 floor invalidates prior support levels and trend‑line calculations, forcing many technical models to reset. Traders relying on the NYSE chart will see a “gap” and may initiate stop‑loss orders, further amplifying moves.
4. Fundamental pressure: The low‑price signal reflects deteriorating fundamentals (e.g., cash‑burn, revenue shortfall). Any new information—press releases, earnings, or restructuring news—will be priced instantly, adding to the volatility.

Actionable implications

• Risk‑off or hedging: Position sizes should be trimmed to 20‑30 % of normal exposure; consider using tight stop‑losses (e.g., 5‑10 % from the OTC entry price) or buying protective options if available on the OTC‑quoted ticker.
• Liquidity‑aware entry: If you intend to take a position, wait for the first OTC quote to settle and for the bid‑ask spread to narrow (often 2–3 % of the price) before entering. Anticipate a “settling” phase after the initial 1‑2 hours of OTC trading.
• Short‑term opportunism: Traders with a high‑risk appetite may exploit the early‑stage volatility by scalping the spread, but must be prepared for rapid reversals and potential “flash‑crash” moves.

In summary, the immediate post‑delisting period will be characterized by elevated, short‑term volatility—typically 30‑50 % intraday—driven by liquidity loss, regulatory uncertainty, and a broken technical baseline. Managing exposure, using tight risk controls, and waiting for the OTC market to stabilize are the prudent ways to navigate this turbulent window.